Why policies are important!
1. They communicate values and expectations for how things are done at your organization
2. They keep the organization in compliance with legislation and provide protection against employment claims
3. They document and implement best practices appropriate to the organization
4. They support consistent treatment of staff, fairness and transparency
5. They help management to make decisions that are consistent, uniform and predictable
6. They protect individuals and the organization from the pressures of expediency
There are many ways to go about setting up HR policies that are legal, fair and keep company moral up. If you don't know much about HR then seek out information online, through professional HR groups, or you can ask me. The best advise is to have your legal team run a review on all the policies you are thinking about setting up before you implement them!
For a great HR resource, check out http://www.humanresources.org/website/c/