Set up employment policies for your business

Disciplinary and conduct policies - harassment, bullying and disputes

It is good practice to have clear policies on harassment and bullying, and you are required to set out your disciplinary and dismissal rules and your grievance procedures in a written document.

Harassment, victimisation and bullying
Employers are responsible for taking steps to stop harassment, victimisation and bullying. From 1 October 2005, new regulations make sexual harassment - and harassment on the grounds of sex - explicitly unlawful in employment or vocational training. The forms that harassment, victimisation and bullying can take are varied and sometimes subtle. However, they can lead to serious problems for your business if they aren't handled properly, eg potentially large compensation awards against you. See our guide on bullying and harassment.

It's a good idea to set up clear policies in this area so that employees are aware of the standards of behaviour you expect. Rules should also specify clearly what type of behaviour will qualify as gross misconduct – when employees may be dismissed without notice if their misconduct is judged to be very serious. This should include advertising these policies and using induction processes to get the message across.

Settling Disputes
Under the Employment Act 2002 (Dispute Resolution) Regulations 2004, businesses have to set out to their staff their disciplinary and dismissal rules and their grievance procedures in writing. This can be incorporated in the staff contract or handbook or within a separate written statement.

If you fail to issue your procedures on discipline, dismissal and grievance in writing, and one of your employees takes an employment tribunal case against you and wins, you could be liable for a fine of up to four weeks' wages on top of the other tribunal expenses.

See our guide on handling discipline and grievance issues.

Setting guidelines on whistleblowing will promote a culture where employees raise concerns internally, rather than outside the business. Likewise, implementing a policy on equal opportunities demonstrates that your business is committed to preventing harmful discrimination of all kinds. This is beneficial both for you and your employees as well as for your business' image externally.

See our guide on how to prevent discrimination and value diversity.

Subjects covered in this guide

• Introduction
• What types of policies should I set up?
• Working time policies
• Patents and copyright
• Health and safety policies
• Disciplinary and conduct policies - harassment, bullying and disputes
• Company policies and facilities
• Training and performance management
• Pay, rewards and benefits
• Writing staff policies

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