A personnel policy can be used to lay down uniform and binding rights and obligations as well as other provisions that are to apply to all employees of a company.
This enables companies to massively reduce the work involved in drafting and adapting individual employment contracts. General clauses which are to apply to all employees are already laid down in personnel policy and do not need to be negotiated in individual cases. Furthermore, a personnel policy can promote equal treatment of employees and increase transparency with regard to the terms of employment.
A personnel policy usually contains provisions on the most important obligations of employees, such as instructions on conduct at the workplace, working hours, holidays, public holidays, absences, etc.