A Detailed Guide to Creating and Managing Workplace Policies

Relevant For:

Business owners, HR professionals and managers seeking to implement effective workplace policies in Australian small-to-medium businesses

Key Points:

• Workplace policies clarify employee behaviour, internal processes and benefits.
• Separate policies from contracts to minimise risks of breach claims.
• Engage leadership and staff to build practical, well-communicated policies.
• Policies must be accessible, regularly reviewed and consistently enforced.

Full Article:

Workplace policies are essential tools for setting clear expectations, defining acceptable behaviour, and outlining internal procedures within an organisation. For any business—small or large—having well-crafted workplace policies not only ensures legal compliance but also promotes a healthy, productive work environment.

What is a Workplace Policy?

A workplace policy is a formal statement that outlines how various aspects of an organisation’s operations are managed. It serves as a framework for how employees should conduct themselves, comply with internal processes, and take advantage of employee benefits. Policies are typically segmented into three broad categories:

1. Behaviour and Performance Standards - These policies define the expected standards of behaviour for both employees and employers. Examples include:
   • Code of Conduct: Establishes how employees should behave in various situations.
   • Workplace Communications: Outlines acceptable use of communication tools like email and social media.
   • Bullying and Harassment: Prevents inappropriate behaviour and fosters a respectful work environment.
2. Internal Processes - These policies govern the internal functioning of the business, providing guidelines on procedures such as:
   • Grievance Resolution: Describes how employees can raise concerns or complaints.
   • Disciplinary Procedures: Outlines the process for handling performance issues or misconduct.
   • Performance Reviews: Sets expectations for employee evaluations and feedback.
3. Employee Benefits - Policies that explain the benefits available to employees, and how they can access them:
4. • Redundancy Procedures: Provides clarity on the process if an employee's role becomes redundant.
   • Leave Entitlements: Outlines procedures for annual, sick, and parental leave.

Should Policies Be Part of Employment Contracts?

One common question is whether workplace policies should be incorporated into employment contracts. While it may seem like a convenient way to formalise expectations, directly incorporating policies into contracts can cause significant issues. If a policy is breached—by either party—it could lead to a breach of contract claim.

A better approach is to reference workplace policies in the employment contract without making them part of the contractual terms. This allows for more flexibility. For example:

• Include a general clause in the employment contract that requires employees to follow the company’s workplace policies.
• Keep the policies separate from the contract, allowing them to be updated without requiring contract amendments.

This approach also avoids the need to update every employee contract each time a workplace policy changes, preventing administrative burdens.

Steps to Introducing Workplace Policies

Creating and implementing effective workplace policies requires careful planning and collaboration. Below is a detailed step-by-step guide for establishing policies in your business: