Publication date: 30.06.2025
My specialization: Drafting legal documents, contract law, labor law, business compliance, immigration support, and cross-border consulting.
Introduction
This case concerns a comprehensive legal review of workplace policies and procedures for a mid-sized company in the United Kingdom operating in the B2B services sector, employing over 80 staff and contractors. The company’s management approached me to conduct a full legal audit of their internal documentation to reduce employment law risks and ensure compliance with current HR compliance and Data Protection (GDPR) requirements.
The Task
The company aimed to update its policies regarding employees and contractors due to:
- internal growth (an increase in staff and service providers),
- the need to standardise HR procedures,
- planned expansion (including opening new offices in other regions),
- the risk of inconsistencies in policies created at different times by different managers.
The key task was to review, align, and improve all documentation governing employment relationships, contractor engagement, grievance procedures, disciplinary processes, and workplace conduct standards.
Challenges
The legal audit revealed several complex issues:
- Policies were outdated and did not reflect the latest changes in UK law (including the Employment Relations Acts, Equality Act, and HMRC Worker Status Guidelines).
- The Employee Handbook contained conflicting or vague provisions on working conditions, overtime, termination, and leave.
- Staff classification was unclear — some contractors performed tasks similar to employees, increasing the risk of reclassification by HMRC or an Employment Tribunal.
- The data protection and privacy policy did not meet GDPR standards, especially regarding third-party data sharing or complaint record storage.
- There was no formal grievance procedure — issues were resolved informally through line managers, which didn’t meet best practice standards.
Strategy and Implementation
I proposed and delivered the following steps:
Initial Legal Review
Reviewed existing policies and contracts and benchmarked them against current UK employment law, including ACAS guidance and Employment Tribunal case law.
Risk Report Preparation
Identified critical areas (e.g., disciplinary measures, leave, sick notes) and provided a detailed list of legally justified revisions.
Employee Handbook Update
Rewrote the handbook tailored to the business type, incorporating:
- Equality and anti-discrimination policy
- Flexible working arrangements
- Remote work policy
- Whistleblower protection procedures
Contractor and Employment Status Classification
Assessed whether service providers met the criteria for self-employed contractors or posed reclassification risks (based on control, dependency, obligations, etc.).
Prepared independent contractor agreement templates clearly outlining non-employee status.
GDPR-Compliant Procedures
Drafted a data handling policy for both employees and contractors, covering data retention, subject access, and data sharing provisions.
Grievance Procedure Creation
Developed a clear Grievance & Disciplinary Policy with required steps, deadlines, designated personnel, and liability limitations.
Outcome
- A complete set of updated corporate documents was delivered, including an Employee Handbook, Employment Contracts, Contractor Agreements, and a Data Policy.
- Legal risks were significantly reduced with respect to HMRC audits and Employment Tribunal claims.
- Delivered a training session for the HR team on the new policies and clarified implementation steps.
- The company gained a scalable compliance system ready for fast adaptation across future branches.
- Ensured that internal procedures aligned with ACAS recommendations and UK employment law best practices.
This case demonstrates that a legal audit of internal policies is not a formality but a proactive risk management tool that enables a company to operate confidently, lawfully, and sustainably.
The updated policies not only reduced legal exposure but also enhanced the company’s employer brand — transparency, protection, accountability.
For any business aiming for long-term growth in the UK, clear documentation of employment and contractor relationships is critical. This project proved that legal literacy = business stability.
