What should your employment policy cover?

You need to be aware of and comply with the contents of the following Acts, as employees can make claims relating to each of them:- Equal Pay, Health and Safety at Work, Sex Discrimination, Race Relations, Transfer of Undertakings (protection of employment) Regulation, Disability Discrimination, Employment Rights, Employment Tribunals, National Minimum Wage, Part Time Workers Regulation and finally, the government will introduce legislation relating to age in 2006.

Most cases that go to tribunal revolve around unfair and constructive dismissal, sex and race discrimination, victimisation and indirect sex and race discrimination. Early on it's all about damage limitation. So unless you're 200% sure that you behaved fairly and can prove it then consider alternatives such as arbitration and settling. Having ensured your policy covers all the bases you should be alright.

Law firms often take up the appellant's case on a 'no win, no fee' basis. And you could face something bigger than the 'harmless' employee you got rid of. Trade unions, the CRE (Commission for Racial Equality), the EOC (Equal Opportunities Commission) and the CAB (Citizens' Advice Bureau), often take up cases on fired employees' behalves. They have expertise and considerable resources. But, by and large, assuming you believe your decision and handling was right and fair, proceed.

How should I make my policy known?

Wrap your new set of procedures in a company handbook or make details easily accessible on-line or within the office, perhaps even on communal notice boards. Drip feed and remind staff as matters are rarely black and white. You also need a clearly set out contract of employment, explaining all relevant terms and conditions.

This should include your policy on general conditions of employment, normal working hours, holidays, benefits (pension and health care schemes, for example), health and safety, disciplinary procedures, suspension and termination of employment.

Employees should understand your take on expenses, sickness, dress code, identity of line manager, e-mail and internet policy, confidentiality, issues surrounding company equipment and property, company background and employee development.

Conduct regular reviews and appraisals. This helps flag up potential problems before they escalate. If somebody is a poor performer then be willing to increase levels of supervision in the first instance. The onus is on the employer to improve a person's performance.

It’s no good having a list of policies if you are not going to implement them and implement them consistently.

Group dynamics are notoriously difficult to manage. Make all your managers aware of the policies and include training and possibly even role-playing in order to see how a situation that could arise should be handled. This can be revealing and reminds members of your team that sometimes it’s best that they keep thoughts to themselves and refrain from saying something that may offend.