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Employing and managing staff is a complex exercise and employment law risks are diverse and ever changing. As an employer, you may decide to have a single staff handbook including all of your policies or to have separate policies.
A key reason to have your employment policies and procedures separate from the employment contract is the crucial ability to amend them as the need arises. The employment contract, like all contracts, once concluded can generally only be varied by mutual consent. If important policies are included in the employment contract that need to be altered, if the employee refuses it presents an employer with some difficulty. If you have a number of employees you will also have a logistical and resource problem.
Even if non-contractual, failure to follow your policies, whilst not a breach of contract, will often be considered by an employment tribunal if relevant. Employers need to have good reason if they don’t adhere to their own policy. There is also a residual threat of a policy being deemed to be contractual, if custom and practice supports such a finding.
All of these factors make it a good idea to seek solicitor advice on employment policies.