Health and Safety Requirements for Businesses with 5 or More Employees

Reaching 5 employees is a significant milestone for any growing business. Beyond the obvious signs of success, it triggers a fundamental change in your health and safety obligations: written documentation becomes mandatory. What you could previously manage informally must now be recorded in writing.

What changes at 5 employees?

The Health and Safety at Work etc. Act 1974 and the Management of Health and Safety at Work Regulations 1999 apply to all employers, regardless of size. However, certain documentation requirements only become mandatory once you reach the 5-employee threshold.

Before 5 employees

With fewer than 5 employees, you:

• Must conduct risk assessments (but don't have to write them down)
• Must manage health and safety risks
• Must appoint a competent person
• Must provide training and information
• Do not need a written health and safety policy
• Do not need to record risk assessment findings

At 5 employees and beyond

Once you employ 5 or more people:

• Must have a written health and safety policy
• Must record the significant findings of your risk assessments
• Must record who might be harmed and how
• Must bring the policy to employees' attention
• Must review and update documentation regularly

Why 5 employees?

The threshold comes from the Employers' Health and Safety Policy Statements (Exception) Regulations 1975, which exempt employers with fewer than 5 employees from Section 2(3) of the HSWA 1974 (the requirement for a written policy).

The rationale is that very small businesses may find extensive documentation disproportionate. However, once you reach 5 employees, the law assumes your operation is complex enough to warrant formal documentation.

Who counts as an employee?

The 5-employee threshold includes:

• Full-time employees
• Part-time employees (regardless of hours)
• Temporary workers
• Casual workers
• Fixed-term contract staff
• Agency workers you supervise directly

It does not typically include:

• Genuinely self-employed contractors
• Volunteers (though good practice to include them in your arrangements)

Important: The count is head count, not full-time equivalents. If you employ 8 people working 20 hours each per week, you have 8 employees and need written documentation.

The written health and safety policy

Your health and safety policy must contain three distinct sections:

1. Statement of Intent

This is your organisation's declaration of commitment to health and safety. It must be signed by the most senior person in the business.

What to include:

• Commitment to protecting the health and safety of employees and others
• Recognition of legal duties under health and safety law
• Commitment to providing adequate resources
• Promise to consult with employees
• Date and signature of the most senior person (owner, managing director, or equivalent)
• Review date

Example statement:

"As Managing Director of [Company Name], I am committed to ensuring the health, safety, and welfare of all employees and others who may be affected by our activities.

We will comply with the Health and Safety at Work etc. Act 1974 and all relevant regulations. We will provide safe working conditions, adequate training, and the resources necessary to maintain a safe workplace.

This policy will be reviewed annually and revised whenever significant changes occur.

Signed: [Name] Position: Managing Director Date: [Date] Next review: [Date]"

2. Organisation section (who does what)

This section defines responsibilities for health and safety throughout your organisation.

What to include:

• Overall responsibility: Who has ultimate accountability (usually owner/MD)
• Day-to-day responsibility: Who manages health and safety practically
• Specific duties: What managers, supervisors, and employees must do
• Competent person: Who provides health and safety advice (internal or external)

Example structure for a small business:

Be specific. "The Operations Manager will conduct monthly workplace inspections" is better than "Managers are responsible for safety."

3. Arrangements section (how you manage H&S)

This is the practical "how we do it" section. It describes your systems and procedures for managing specific risks.

Topics to cover (as relevant to your business):

• Risk assessment process
• Fire safety and emergency procedures
• First aid arrangements
• Accident and incident reporting
• Training and induction
• Electrical safety
• Manual handling
• Display screen equipment (computers)
• Hazardous substances (if applicable)
• Lone working (if applicable)
• Workplace inspections
• Consultation with employees
• Review and monitoring

Example arrangement (First Aid):

"First Aid

• A first aid needs assessment has been conducted and is reviewed annually.
• [Name/Role] is the appointed first aider, trained in Emergency First Aid at Work.
• First aid kits are located in the kitchen and main office, checked monthly by [Role].
• All employees are informed of first aid arrangements during induction.
• The first aid certificate is displayed in the staff area."

Bringing the policy to employees' attention

Having a policy is not enough - you must communicate it to all employees:

• Provide access to the full document (printed copy, shared drive, intranet)
• Cover key points during induction
• Highlight relevant sections in training
• Notify employees when the policy is updated
• Display the statement of intent on a noticeboard

Reviewing and updating

Your policy must be a living document:

• Annual review: At minimum, review once per year
• After changes: Update when you change premises, processes, equipment, or personnel
• After incidents: Review relevant sections following accidents or near-misses
• After enforcement: Update if inspectors identify gaps

Keep a record of reviews:

Written risk assessments

When you reach 5 employees, you must also record the significant findings of your risk assessments.

What must be recorded?

Your written risk assessment must include:

1. The significant hazards you have identified
2. Who might be harmed and how
3. What controls you have in place
4. Whether further action is needed
5. Who is responsible for actions and by when

Format

There's no prescribed format, but a simple table works well:

When to review risk assessments

Review your risk assessments:

• At least annually
• When circumstances change (new equipment, processes, premises)
• After incidents or near-misses
• If employees raise concerns
• When regulations change

Document each review - even if no changes were needed, record that you reviewed and confirmed the assessment remains valid.

Additional considerations at this size

Reaching 5 employees often means your business is growing and becoming more complex. Beyond the mandatory documentation, consider these practical steps:

Appointing a competent person

The Management Regulations require you to appoint one or more competent persons to assist with health and safety. Options include:

• Yourself (if you have appropriate training, e.g., IOSH Managing Safely)
• An employee (with suitable training and time allocated)
• An external consultant (for specialist advice and periodic reviews)

For most small businesses at the 5-employee threshold, a combination works well: basic internal awareness plus external professional support for risk assessments and annual reviews.

More structured training approach

With 5+ employees, informal "show and tell" training becomes harder to track. Implement:

• Documented induction checklist covering health and safety essentials
• Training records showing what each employee has received
• Refresher schedule for ongoing training (e.g., fire safety annually)
• Evidence of competence for specific tasks (e.g., forklift licence, first aid certificate)

Better record keeping

Beyond the mandatory policy and risk assessments, maintain records of:

• Training completed (who, what, when)
• Accidents and incidents (accident book or database)
• Fire drills (dates, times, observations)
• Equipment inspections and maintenance
• First aid kit checks
• Any health surveillance conducted

These records demonstrate active management and protect you if questions arise later.

Consider fire wardens

If your premises have multiple areas or floors, appoint fire wardens to:

• Assist with evacuation
• Check their area is clear during drills and emergencies
• Conduct regular checks of escape routes and fire equipment
• Report fire safety concerns

For a 5-10 person office in a single open space, this may be overkill. For larger or more complex premises, it becomes essential.

Consultation with employees

You have a legal duty to consult employees on health and safety matters. With 5+ employees, this should be more systematic:

• Discuss health and safety at team meetings
• Invite feedback on risk assessments
• Act on concerns raised
• Involve employees in developing safe procedures

This doesn't require a formal safety committee at this size, but genuine two-way communication is expected.

What to include in your H&S policy: practical guidance

Here's a proportionate structure for a business with 5-15 employees:

Part 1: Statement of Intent (1 page)

• Commitment statement
• Signature of most senior person
• Date and review date

Part 2: Organisation (1-2 pages)

• Overall responsibility (owner/director)
• Day-to-day responsibility (manager or named person)
• Employee responsibilities
• Competent person details

Part 3: Arrangements (3-6 pages)

Cover topics relevant to your business. For a typical small office or retail environment:

1. Risk assessment - how and when you assess risks
2. Fire safety - evacuation procedure, fire equipment, drills
3. First aid - who, what, where
4. Accident reporting - how to report, investigation process
5. Training - induction, ongoing, records
6. Electrical safety - PAT testing, visual checks
7. Manual handling - training, equipment provided
8. Display screen equipment - workstation assessments
9. Workplace housekeeping - keeping areas clear and safe
10. Consultation - how you involve employees

Total: 5-10 pages is typically sufficient for a small, low-to-medium risk business.

Templates and where to find them

You don't need to start from scratch. Quality templates are available from:

Free resources

• HSE website (hse.gov.uk): Free policy templates and risk assessment examples for various industries
• Trade associations: Many provide member-only templates tailored to your sector
• Local authority business support: Some councils offer free health and safety resources

Paid resources

• Health and safety consultants: Bespoke templates tailored to your specific business
• Professional bodies: IOSH and similar organisations offer template packs
• Online compliance platforms: Subscription services with template libraries

Important: customise, don't just copy

Whatever template you use, you must adapt it to your business:

• Insert your company name and details
• Remove sections that don't apply
• Add specific arrangements for your actual risks
• Name real people (or roles) with responsibilities
• Describe what you actually do, not theoretical best practice

An inspector will immediately spot a generic template that hasn't been customised. It suggests you haven't thought about your real risks.

Use our Document Checker to review your policy and risk assessments for common gaps and compliance issues.

When to get professional help

You can create your own policy and risk assessments, but consider professional support if:

• You're unsure about your risks: A consultant can identify hazards you've missed
• Your business has specific hazards: Chemicals, machinery, working at height, etc.
• You don't have time: Running the business leaves little capacity for health and safety admin
• You want peace of mind: Professional documents give confidence you're compliant
• Clients require it: Some contracts demand externally verified health and safety arrangements

What professional help costs

For a small business with 5-15 employees:

• One-off policy and risk assessment package: £500-1,500
• Annual retainer (including reviews and advice): £500-2,000 per year
• Day rate for consultant visit: £400-800

Compare this to the cost of getting it wrong: HSE prosecutions result in fines often exceeding £10,000 for small businesses, plus legal costs and reputational damage.

Growing beyond 5: a scalable approach

If you're at 5 employees now, you may be at 15 or 50 in a few years. Build a system that scales:

Document systematically

Create a health and safety folder (physical or digital) with:

• Health and safety policy
• Risk assessments (general and task-specific)
• Training records
• Accident and incident records
• Inspection records
• Fire safety records
• Equipment maintenance records

Use consistent formats

Adopt standard templates for risk assessments, training records, and inspections. This makes it easier to maintain as you grow.

Build competence internally

As you grow, you'll need internal health and safety capability:

• Train a manager or supervisor (IOSH Managing Safely or equivalent)
• Consider a dedicated health and safety coordinator at 20+ employees
• Develop a culture where everyone takes responsibility

Review as you grow

Each time you add significant employees, premises, or activities, review whether your arrangements are still adequate. What works for 5 employees may not work for 25.

Frequently asked questions

Checklist: Are you ready for 5+ employees?

Before you reach or immediately upon reaching 5 employees, ensure you have:

Written Health and Safety Policy:

• Statement of intent signed by most senior person
• Organisation section defining responsibilities
• Arrangements section covering relevant topics
• Policy accessible to all employees
• Review date scheduled

Written Risk Assessments:

• General workplace risk assessment completed
• Significant findings recorded
• Who might be harmed identified
• Control measures documented
• Actions assigned with deadlines
• Review schedule in place

Supporting Arrangements:

• Competent person appointed (internal or external)
• Induction process includes health and safety
• Training records system in place
• Accident reporting procedure established
• Fire safety arrangements documented
• First aid provision assessed and documented

Next steps

If you're approaching or have just reached 5 employees:

1. Assess your current position: What documentation do you already have?
2. Identify gaps: What's missing against the requirements above?
3. Create your policy: Use a template as a starting point, then customise
4. Document your risk assessments: Walk through your workplace and record findings
5. Communicate to employees: Make sure everyone knows the policy exists and where to find it
6. Set up review reminders: Schedule annual reviews in your calendar
7. Consider professional support: Get a consultant to review your documents or create them for you

Use our Document Checker to assess whether your health and safety documentation meets legal requirements.

Related articles:

• Health and Safety Guide for Small Businesses
• Do I Need a Health and Safety Policy?
• What is a Competent Person?
• Risk Assessment Guide

Useful tools:

• Document Checker
• Small Business Health and Safety Checker