10 questions every UK small business owner searches on Google.

Not legally, no. But without one, every decision you make about lateness, holiday, conduct or working hours gets made up on the spot, and that is where inconsistency creeps in.

A handbook does not need to be fifty pages. It needs to cover the things that actually come up: hours, holiday, sickness reporting, conduct expectations and how disciplinary and grievance processes work. Once it exists, you can point to it instead of having the same conversation from scratch every time.

Common mistake: Copying a generic template from the internet and never adapting it to how the business actually runs.

Practical next step: Start with the five policies you get asked about most, then build outward from there.

A written statement of employment particulars, which by law must be given on or before their first day. This covers pay, hours, holiday entitlement, notice periods and where they work.

You also need employers' liability insurance, to register as an employer with HMRC, and a way of processing payroll. None of this is optional once someone is officially on the books.

Common mistake: Treating a verbal agreement or a quick email as good enough. It is not, and it leaves both sides guessing later.

Practical next step: Get the written statement sorted before day one, not after.

Start with a conversation, not a warning. Most performance issues are about unclear expectations, not unwillingness. Set out specifically what needs to improve, by when, and what support you will give them to get there.

If things do not improve, that is when a formal process, such as a performance improvement plan, comes in. Document each conversation as you go.

Common mistake: Letting it drift for months because the conversation feels awkward, then trying to dismiss someone with no paper trail to show for it.

Practical next step: Write down today's conversation, even informally. Future you will thank present you.

Probation exists so both sides can check the role is the right fit. A fair process means clear objectives from day one, a check-in partway through, and a proper review meeting before the end date, not a decision made on the final day with no warning.

If someone is not working out, tell them early. Waiting until the last week of probation to raise concerns for the first time is not fair, even if it is legally simpler than dismissing someone with longer service.

Common mistake: Extending probation repeatedly instead of making a decision, which just delays a conversation that needs to happen.

Practical next step: Book a probation review meeting into the diary the day the employee starts, not the week it is due.

Investigate first. Gather the facts before deciding anything, including speaking to witnesses and reviewing any evidence. Only once you have a clear picture should you invite the employee to a formal disciplinary meeting in writing, setting out what is being alleged.

The employee has the right to be accompanied at that meeting, and to a fair hearing before any outcome is decided. The Acas Code of Practice sets out the steps, and tribunals expect you to have followed it.

Common mistake: Skipping the investigation and going straight to a disciplinary meeting because the situation feels obvious. It rarely is once you dig in.

Practical next step: Write down what happened, who was involved and what evidence exists before you do anything else.

Yes, capability is one of the fair reasons for dismissal recognised in UK law. But you need to show you gave the employee a genuine chance to improve first, with clear standards, support and a reasonable amount of time.

Jumping straight to dismissal without that process, even where performance genuinely is poor, is where employers run into trouble.

Common mistake: Assuming poor performance is obviously fair grounds and skipping the warnings and improvement period that need to come first.

Practical next step: Check what warnings and support have already been given. If none, that has to happen before dismissal is even on the table.

Take it seriously and acknowledge it promptly, even if you think it is minor. Investigate the concerns properly, hold a formal meeting to discuss them, and give the employee a written outcome.

They have the right to appeal if they are unhappy with the outcome. Ignoring a grievance or handling it informally when it clearly needed a formal process is one of the fastest ways to end up with a much bigger problem.

Common mistake: Dealing with it verbally and hoping it goes away, with nothing written down anywhere.

Practical next step: Acknowledge the grievance in writing within a few days, even if the full investigation takes longer.

There is no fixed number of days that automatically allows dismissal. What matters is whether you have followed a fair process, including getting occupational health input where relevant, having return-to-work conversations, and considering reasonable adjustments.

Long-term absence needs to be handled very differently from short-term, frequent absence, and both need to be handled differently again if the underlying issue could be a disability.

Common mistake: Treating a set number of sick days as an automatic trigger for dismissal without looking at the individual circumstances.

Practical next step: Start return-to-work conversations early and keep a record of what support has been offered.

Yes, and it is usually the right step before any disciplinary action for capability issues. A good PIP sets specific, measurable objectives, a realistic timeframe, and clearly states what support the business will provide.

It should be a genuine opportunity to improve, not a formality on the way to a decision that has already been made.

Common mistake: Setting vague objectives like "improve attitude" that cannot actually be measured, which makes the whole process hard to defend later.

Practical next step: Write objectives that someone outside the business could look at and know whether they were met.

Yes, arguably more than a larger business does. With five people, one bad process around a dismissal or grievance can do disproportionate damage, both financially and to team morale.

You do not need the depth of policy a 200-person company has. You need the handful that actually get used: disciplinary and grievance, absence, and basic conduct expectations.

Common mistake: Assuming policies are only needed once the business is "big enough", then scrambling to write one after a problem has already started.

Practical next step: Identify the one HR situation most likely to come up in your business in the next six months, and make sure a policy exists for it.