The MUST haves of HR vs. Good Practice: What Businesses Really Need

If you are involved in run a business, you’ve probably heard all sorts of alarming claims about HR.

“You must have this.”
“If you don’t do that, your business is at risk.”

Sound familiar? There’s a lot of scaremongering when it comes to HR, and it can be overwhelming.

I’ve spoken to many business owners who’ve been led to believe they need an endless list of policies, procedures, and paperwork to stay compliant.

Let’s cut through the noise. Here’s a clear breakdown of what’s legally required in the UK versus what’s simply good practice.

✅ What’s Legally Required (Must Have)

These are the absolute essentials—skip them, and you could be in trouble:

• Employment contract – Must be provided on or before an employee’s first day.

• Right to work checks – Must be completed before employment begins.

• National Minimum Wage compliance – You must pay at least the legal minimum.

• Health & safety policy – If you have five or more employees, this must be in writing.

• Pension auto-enrolment – Applies to eligible employees.

• GDPR compliance – You need to handle employee data correctly.

• Disciplinary & grievance procedures – These must be documented.

• Holiday entitlement & working hours compliance – You must meet statutory requirements.

• Statutory Sick Pay (SSP) – If an employee qualifies, you’re legally required to pay it.

• Maternity, paternity & other leaves – You must follow statutory rules - there are some new ones.

What’s Good Practice (Should Have, But Not Law)

While not legally required, these policies and processes can make life easier:

• Employee handbook – A great way to set clear expectations.

• Probationary reviews – Helps manage new hires effectively.

• Performance management – Prevents future headaches.

• Wellbeing & mental health support – Increasingly expected by employees.

• Flexible & remote working policies – Essential for clarity in modern workplaces.

• Diversity & inclusion policies – A good idea, but not strictly mandatory.

HR Without the Fear Factor

If you’re a business owner, don’t let fear dictate your HR decisions. Start with the legal essentials, then build from there in a way that actually works for your business.

In a nutshell, we’ll put the HR foundations in place - so you can get on with growing your team and your business.

💡 Need a no-nonsense breakdown of what your business really needs? Let’s chat. Drop me a message, and we’ll set up a time to talk. Carol@LemonadeHR.co.uk