Why Every Small Business Needs a Clear Hours of Work Policy (and How t

Running a small business is already a full-time job (and then some). Between hiring, managing day-to-day operations, and putting out the occasional fire, it's easy to let HR compliance take a backseat. But here's the truth: a clear Hours of Work Policy isn't just a nice-to-have—it’s a must.

Let’s break down what this policy is, why it matters, and how you can roll it out with zero stress (even if you don’t have an HR team).

What Is an Hours of Work Policy?

An Hours of Work Policy is a written document that outlines:

When employees are expected to work
How many hours they can legally work in a day or week
When breaks must be taken
Expectations for full-time, part-time, and casual staff
What happens in emergencies (e.g., snow days, power outages)
Whether employees are allowed to check email or work after hours

It’s your rulebook for work hours—and it protects both your business and your team.

Why It Matters for Small Business Owners

1. You're legally required to follow the ESA (Employment Standards Act)
In Ontario, for example, the ESA limits most employees to 8 hours a day and 48 hours a week, unless you have written agreements in place. If you're not tracking this, you're opening yourself up to legal headaches (and potential penalties).

2. It sets clear boundaries
Ever had an employee say they didn’t know their shift ended at 5pm? Or that they thought breaks were optional? A written policy removes the guesswork. Everyone knows what’s expected.

3. It supports a healthier workplace culture
Burnout is real. And for small teams, one tired or confused employee can affect the whole operation. A policy that includes time to disconnect from work and clear break expectations encourages balance and respect.

4. It’s easier to handle payroll and scheduling
When your hours are consistent and documented, payroll runs smoother. No more wondering if someone was owed a break—or if they should be paid for that half-day when the power went out.

How to Roll Out an Hours of Work Policy (Even If You Don’t Have HR Help)

You don’t need a massive HR department to implement this. Just follow these simple steps:

Step 1: Start with a Policy Template You Can Trust

Use a downloadable policy written specifically for Ontario businesses and aligned with ESA standards. (Hint: That’s exactly what you’ll find in the DirectiveHR policy shop.)

Hours of Work Policy - View Here

Step 2: Customize It to Fit Your Business

Adjust the policy based on your business hours, how you schedule shifts, and whether you offer paid or unpaid breaks. Not every company works 9 to 5—and that’s okay.

Example:
Let’s say you run a bakery and your team starts at 4:30am. You’ll want your policy to reflect that, and to include break options that fit those early morning hours.

Step 3: Communicate It Clearly

Host a quick team meeting (in person or virtual) to walk through the policy. Keep it simple. Explain:

Why this matters
What’s changing (if anything)
Who to ask if they have questions

Hand out printed or digital copies. Better yet, include a signature page to confirm each employee has read and understood it.

Step 4: Post the Policy Where People Can Find It

This could be your staff bulletin board, employee portal, or HR binder. Accessibility = accountability.

Add this Policy to your Employee Handbook.

Step 5: Stick to It

Once it’s in place, follow through. If the policy says no work emails after 6pm, then don’t expect replies at 7:30pm. If you promise a paid 15-minute break, make sure people are actually taking it.