For startups and scale-ups, a strong foundation of Human Resources (HR) policies is just as vital as securing funding or developing a competitive product. In the fast-paced world of entrepreneurship, growth and innovation often take precedence, sometimes at the expense of structured HR practices. However, as companies expand, the absence of clear policies can lead to legal risks, workplace conflicts, and decreased employee satisfaction.

Creating strong HR policies helps companies follow employment laws, build a good and welcoming workplace culture, and make job expectations clear for new hires from the start. In Europe big shifts in job regulations have put more focus on worker rights, work-life balance, and fair treatment at work. The EU has brought in new rules to improve parental leave, strengthen remote work guidelines, and give workers the “right to disconnect” from work duties outside of work hours. Also more attention to workplace ethics, including online behavior and digital responsibilities, shows that startups need to update their policies to match what people expect in today’s workplace.

To help businesses navigate this crucial aspect of growth, TheHRchapter has prepared this guide, outlining the key policies every startup and scale-up in Europe should implement to stay compliant, protect employees, and build a prospering workplace culture.

Code of conduct

A code of conduct is the cornerstone of organizational work culture, establishing clear expectations regarding employee behavior, ethical practice, and professional interaction. For startups and scale-ups, whose personnel are usually diverse and undergo rapid growth, a clearly written code of conduct is crucial for the establishment of a respectful, inclusive, and legally compliant working environment. It makes the employees aware of their responsibilities and provides a basis for addressing potential issues before they escalate into conflicts or legal disputes.

Digital conduct: social media and online activities

• Social media policy: Employees must be instructed on being responsible with social media, particularly when posting regarding company matters or commenting on matters that can impact the reputation of the company.
• Online harassment policies: Clear policies need to be established to ban cyberbullying, profanity, and harassment via all the digital communication channels, such as emails, chat, and remote work software.
• Confidentiality and data protection: The employees should be clearly informed that the disclosure of sensitive company information on personal networks is strictly prohibited.

A properly tailored Code of Conduct is meant to assist startups and scale-ups in establishing their company culture while, at the same time, limiting legal exposure, promoting professionalism, and facilitating compliance with contemporary workplace standards.

Leave policies

It is crucial to have clear and well-communicated leave policies to assist employees in understanding their entitlements and how to apply for leave. Transparent policies assist in creating a work culture that facilitates work-life balance and well-being, removing uncertainty and stress for employees as well as ensuring adherence to labor laws. Scale-ups and startups must consider these regulations when designing their HR policies to continue being attractive employers and avoid any potential legal complications.

In the European Union itself, workers are guaranteed at least four weeks (20 working days) of paid annual leave, apart from public holidays. Most countries have more than this minimum, either providing more paid leave days or greater flexibility in their use.

Key types of leave in the EU

1. Annual Leave

The European Union requires at least four weeks (20 working days) of paid annual leave for all employees annually, not including public holidays. This provides workers with sufficient time for relaxation and recuperation to ensure long-term job satisfaction and productivity.

2. Parental Leave

Both parents are also entitled to at least four months of parental leave when a child is born or adopted under EU Directive 2019/1158. Two months cannot be transferred between the two parents to allow both caregivers to spend time with the child.

3. Paternity Leave

Fathers or secondary parents are entitled to at least 10 paid working days of paternity leave in the EU, to be taken during a child’s birth. Some countries have even better benefits.

4. Maternity Leave

The EU allows a minimum 14 weeks’ maternity leave, of which a minimum of two weeks should be taken before or after delivery. However, all countries provide greater benefits.

5. Carers’ Leave

For those employees who are forced to provide care for a seriously ill member of their family or relative, the European Union requires a minimum of five carers’ days off work yearly. Additional entitlements are found in other countries.

Remote work and right to disconnect

Growth in remote and hybrid working has fundamentally transformed the work dynamics of scale-ups and startups, providing employees with more flexibility while allowing companies to tap into talent without geographic constraints. The shift towards remote working, however, brings with it a set of challenges such as preserving productivity, facilitating seamless communication, and avoiding employee burnout. In order to counter these challenges, clearly articulated remote working policies and the imposition of the “right to disconnect” have become essential elements of contemporary human resource policies.

What is the Right to Disconnect?

The right to disconnect is an employee’s legal right to disengage from work-related communication outside of working hours without repercussions. This legislation promotes work-life balance, reduces stress and burnout, encourages employers to respect working hours, and fosters a healthier, more sustainable work culture.

Several European countries have established right-to-disconnect laws to protect employees from after-hours work obligations. France pioneered this in 2017, requiring companies with 50+ employees to negotiate disconnection agreements. Spain grants employees the right to disconnect from digital tools during rest periods, while Ireland’s 2021 Code of Practice ensures employees are not routinely expected to work outside normal hours and mandates that employers take measures to prevent overwork.

Steps to establish effective HR policies

At TheHRchapter, we believe that implementing well-structured HR policies is essential for startups and scale-ups to build a strong, compliant, and employee-friendly work environment. To ensure clarity, legal compliance, and alignment with business goals, we recommend the following key steps:

Do you need an extra hand? At TheHRchapter, we specialize in helping companies develop and implement HR policies tailored to their unique needs. Contact us today to discover how our expertise can support your growth and create a thriving work environment.

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