# What is an HR Policy?

An HR policy sets rules for employees, such as leave or conduct. SMEs use them to ensure consistency and compliance.

Source: https://faqtic.co/glossary/hr-policy

## Why it Matters for SMEs

- Ensures consistency
- Supports compliance
- Reduces disputes

## Example in Practice

Factorial stores and tracks policy acknowledgements.

## Frequently Asked Questions

### Why formalise?

To ensure fairness.

### Update frequency?

Annually or as law changes.

### Store digitally?

Yes.

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