Can I Change My Employee Handbook? (And Other Questions)

This is one of those questions I get asked a lot. Usually in a slightly worried tone, as if changing a handbook is somehow illegal. The good news is, it isn’t! In fact, it’s encouraged. But there is a right way to go about making the changes to make sure you don’t get in trouble. After all,

handbooks (and the policies in them) aren’t set in stone. As your business evolves and employment laws change, the contents of your employee handbook should move along with it. What worked for 5 employees might not work so well with 25, and with so many changes in employment law happening at the moment, now is the perfect time for an overhaul. To help you out, I wanted to go through the questions I get asked most often when this topic comes up.

Can I Change the Handbook Whenever I Like?

In short, yes. For most policies anyway. A handbook (which is different from a contract) is usually classified as company guidance, which means you generally have more flexibility to update it. So if something comes up and you realise your handbook needs to say something different, you can, and should, change it. That said, ‘flexibility’ doesn’t mean ‘free-for-all’. If your policies have become contractual through custom and practice, or if something is specifically referenced in your employment contracts, then you need to tread more carefully.

Do I Need to Inform My Employees of the Changes?

100% yes. Even though you’re legally allowed to change your handbook whenever you like, it’s good practice (and manners) to communicate it clearly. You don’t necessarily have to specify the details of what you’ve changed, but you do need to let them know that the handbook has been updated, and point them to the policy that’s changed. Nobody likes finding out that the rules changed because they’ve run afoul of them and been ‘caught out’. Send a proper update, explain what’s changed and why, and make sure the new version is very easy to find.

What’s the Difference Between a Policy and a Contractual Term?

This is where a lot of people trip up.

A policy tells all employees how something works in practice, like a dress code, IT use, or how to report sickness.

A contractual term is something that each employee has formally agreed to in writing. Things like pay, hours or notice periods. These things may be different from employee to employee.

Policies can usually be updated whenever you need to, provided you give reasonable notice. But contractual terms need discussion and agreement from the employee, or a properly followed, formal process, before you can make any changes.

How Often Should I Review My Handbook?

Ideally, you should be reviewing your handbook at least one a year, as well as whenever there is a change to employment law. While that might feel like every 5 minutes at the moment, it isn’t always, promise! It’s also worth checking your handbook whenever you have a tricky situation crop up, especially if you found your policies didn’t really cover it. An employee handbook can’t cover every single possibility, but the idea is that you start with the broad issues and then you can add in relevant policies as you go.

What Happens if I Don’t Update it?

In the best-case scenario, your employee handbook ends up looking a bit tired and out of step with how your business actually runs. But the best-case scenario often isn’t what happens. In the worst-case scenario, you find yourself running a disciplinary, dealing with a grievance or even siting in a tribunal relying on outdated guidance, and that could leave you exposed. While having an employee handbook is good, an out-of-date handbook won’t give you the protection you need.

Do I Need a Solicitor to Update my Employee Handbook?

In short, no.  But what you do need is someone who understands both employment law and how your business operates on a day-to-day basis. Someone who knows what information you need to cover all the bases, and can design policies that take your desires into account at the same time. Oh, and someone who can write it all out in plain English rather than fill it with HR jargon so thick that no one will want to read it.

So yes, you can, and should, change your employee handbook. Probably more often than you are if I’m honest! But if you don’t know where to start, what you should be including or how to put it all together, then I can help. I work with companies to whip their HR documentation and practices into shape, with practical steps and guidance all done in plain English. Get in touch, and we can get your employee handbook sorted out together.