Here’s the Deal
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Laundry is no one's favourite chore, and by removing the restriction of clothing from a small subset of the employee's wardrobe which would need to be washed, ironed and/or polished you free up their free time, giving them more opportunity to destress and thus be more mentally prepared on returning to work. See More
Whilst some people may work better in smart attire, that doesn't work for everyone. By not forcing a whole group to adhere to one groups preference, you're giving your employees freedom, which is shown to be one of the major factors in employee contentment; giving your company employee motivation for not additional expense. See More
An issue with not having any dress code is if people take advantage of this by dressing provocatively it can lead to issues between employees (taking offense at what the other employee is wearing, or acting inappropriately towards them based on misread signals), which can result in legal cases. Whilst these issues are not necessarily the fault of clothing, it does add to the list of excuses people may cite. Better to avoid the risk by giving some guidance, which allows someone to step in and resolve the issue (with the backing of company policy) before things escalate. See More