Ofsted requires all settings to have a set of policies and procedures which are detailed in the Early years foundation stage statutory framework (EYFS).
Policies and procedures help and guide all staff working in the setting. They ensure and endorse the well-being of all families, children, staff, volunteers and everyone who is connected to the setting. When policies and procedures are well thought out and, most importantly, implemented they provide common understanding and agreement on how things should be done at the setting.
Procedures provide clear instructions and guidelines on what should/must be done in a particular set of circumstances or with regard to a particular issue.
Policies should be 'living' documents that must be regularly reviewed to ensure that they meet all the needs of those working in the setting, and take into account the possible changes that have happened in the setting and within the wider community.
To summarise; good, well thought out and implemented policies and procedures: