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Why do businesses need company policies?

On Behalf of | Nov 22, 2023 | Corporate Law, Employment Law

No matter how small, businesses can have various moving parts with different departments and employees. As these organizations grow and operate, employers must do so in compliance with relevant local and federal employment laws. However, requiring employees to read through these legislations could be challenging.

Fortunately, employers can create company policies as guidelines regarding all aspects of their employees’ functions and welfare. Companies can adapt many policy types based on the business’s nature and the applicable employment laws. These policies can also serve various purposes, including the following:

  • Establishing expectations from employers and employees
  • Setting procedures in case of disputes, complaints or claims
  • Enforcing equality and impartiality in the workplace
  • Holding leaders accountable for any unethical practices and behavior
  • Complying with laws and keeping employees informed of their rights

Additionally, employers can create policies to accommodate unique aspects of the business, such as remote work and safety standards for employees with high-risk occupations.

When to know if a policy is necessary

Determining if a policy is necessary for a specific issue can be challenging. Some use laws as the basis, making them essential without any question. Others can hinge on whether the issue is significant enough to warrant official documentation. Employers can identify the need through observation.

Sometimes, a new policy is necessary, especially if the issue is a habitual problem among employees or a long-term workplace condition that requires employer intervention. Once identified, employers can develop the content, reconciling the problem with the expected result. Employers can also revisit and modify the policy as needed. Doing so keeps the document relevant and dependable, especially when addressing workplace issues concerning safety and security.