Workplace policies every Australian employer needs
Reviewed by Mellow Editorial Team, HR & payroll content team
Workplace policies set the rules of the road for your business and give employees a clear picture of what is expected. Having them in writing protects both sides when a dispute arises.
Why written policies matter
An employment contract covers the individual. Policies cover everyone. They establish consistent standards, reduce the risk of misunderstandings, and give you a defensible position if a Fair Work matter is ever raised against you.
Policies do not need to be lengthy legal documents. Clear, plain-English statements of how your business operates are far more useful than dense legalese that nobody reads. The test is whether a new employee could pick up a policy and understand what is expected of them on day one.
Keep in mind that this article is general information, not legal advice. Your specific obligations depend on your industry, applicable Modern Award, and enterprise agreement. If you are unsure, consult an employment lawyer or HR specialist.
Core policies you should have in place
Code of conduct. This is the foundation. It describes expected behaviour, professional standards, conflicts of interest, and how employees should treat colleagues and customers. A well-written code of conduct underpins almost every disciplinary decision you will ever make.
Leave policy. The National Employment Standards guarantee four weeks of paid annual leave per year for full-time employees, plus personal/carer's leave, compassionate leave, and other entitlements. Your leave policy explains how employees apply for leave, approval processes, and how the business manages peak periods. It should also address any above-award entitlements you offer.
Flexible work and remote work. Employees with at least 12 months of service have the right to request flexible working arrangements in certain circumstances. Even if you handle these requests informally today, a written policy prevents inconsistency and the perception of favouritism.
Anti-discrimination, bullying and harassment. You have legal obligations under both federal and state anti-discrimination law. A clear policy states that the business does not tolerate bullying, harassment, or discrimination on any protected ground, explains how complaints are made, and describes the investigation process. Publishing the policy is not enough — employees need to understand it, which usually means induction training.
Privacy and use of company systems. Employees generally have a reduced expectation of privacy when using work devices, email, and software, but you should still make your monitoring and data-handling practices explicit. This policy should cover personal data your business collects from employees as well as how staff handle customer or client data.
Work health and safety. Every employer has a duty of care under WHS legislation. A WHS policy sets your commitment to a safe workplace, names who is responsible for safety matters, and outlines how incidents are reported and investigated. This sits alongside your specific safe-work procedures, which will vary by industry.
Redundancy and termination
When employment ends, the National Employment Standards prescribe a redundancy pay scale based on years of service. Your termination policy should explain notice periods, how final pay is calculated, and the process for returning company property. It should also describe your disciplinary and performance-management process so employees understand the steps that precede any termination. A clear process here is your best protection against an unfair dismissal claim.
Payroll-adjacent policies worth including
Some policy areas sit at the intersection of HR and payroll administration:
- Expense reimbursement. Who can claim what, by when, and how. Ambiguity here leads to disputes and compliance headaches.
- Overtime and time-in-lieu. If your award or agreement permits time-off in lieu of overtime payment, the arrangement must be documented. A policy that explains how TOIL is accrued and taken prevents it becoming an unmanaged liability on your books.
- Classification and pay rates. Not technically a policy in the traditional sense, but documenting how you classify roles under the relevant Modern Award and how you set pay rates above the minimum keeps you audit-ready and reduces the risk of underpayment claims.
Keeping policies current
A policy written in 2019 may not reflect current law or current working arrangements. Review your policy suite at least once a year, and immediately whenever there is a relevant legislative change or a significant shift in how your business operates. The start of a new financial year — you are now in 2026/27 — is a natural trigger for a review.
When you update a policy, tell employees. A policy employees do not know has changed provides little protection. A short all-staff communication with a summary of what changed, and a request to acknowledge the updated document, is usually sufficient.
Store your policies somewhere employees can actually find them. An intranet, a shared drive, or a well-organised folder in your HR platform all work. What does not work is a printed binder in a filing cabinet that nobody has opened since the last office move.
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