Workplace Code of Conduct and Behavioural Standards

What Is a Workplace Code of Conduct and Behavioural Standards?

A Workplace Code of Conduct and Behavioural Standards is a document that sets the rules for how people behave in your business. It outlines the values of the company and the standard of behaviour expected from everyone. This includes employees, contractors, volunteers, and sometimes even suppliers.

In Australia, this document is not just a formality. It is a practical tool used to manage risk. Under the Work Health and Safety Act 2011 (Cth), employers have a primary duty of care to ensure the health and safety of their workers. This includes psychological health. A Code of Conduct acts as a control measure to manage psychosocial hazards like bullying, harassment, and workplace aggression.

For Australian trades and small businesses, this guide helps define what "doing a good job" looks like. It is not just about the quality of the bricklaying or the coding. It is about how staff speak to clients, how they treat each other on site, and how they represent the brand when they are wearing the uniform.

The document sets boundaries. It tells your team what is acceptable and what is not. When written well, it protects your business culture and helps you meet your legal obligations under federal and state law.

When to Use This Document

Every Australian business should have a Code of Conduct, regardless of size. However, there are specific times when this document becomes essential.

You need to use this document when you are hiring new staff. It forms a key part of the induction process. Research shows that in the Australian trades and small business sector, the Code of Conduct is most effective when presented as a checklist item during induction. You should ask the new employee to sign an acknowledgment to confirm they have read and understood it.

You also need this document if you are expanding your team. As you move from a sole trader to an employer, your risks increase. The document helps maintain standards as your workforce grows.

If you operate in a high-risk industry, such as construction or manufacturing, this document is vital. Principal contractors often require subcontractors to have specific behavioural standards regarding site safety and culture before they can start work on a project.

Finally, you need this document if you are dealing with performance issues. If an employee behaves inappropriately, you rely on the Code of Conduct to explain why their behaviour is unacceptable. Without it, proving that a dismissal was fair becomes much harder.

Key Sections and Required Elements

A strong Code of Conduct must be specific. Vague statements about "being nice" are not enough. You need clear, actionable sections that address your legal duties and business needs.

Purpose and Scope

This section explains why the document exists and who it applies to. The purpose is to set clear standards of behaviour to ensure a safe, respectful, and productive workplace. You must state that the policy applies to employees, contractors, and volunteers. You should also note that it operates in conjunction with your WHS Policy. This ensures the document is seen as part of your safety management system rather than just a list of rules.

Legal Compliance and Diversity

This section meets your obligations under anti-discrimination laws. You must include clauses that prohibit discrimination, harassment, and victimization. This includes sexual harassment and racial harassment. The document should explicitly mention "equal opportunity" regardless of gender, race, religion, or age. This is crucial because states like Victoria have a "positive duty" on employers to eliminate discrimination. Failing to include this leaves you exposed to legal claims.

Workplace Health and Safety (WHS)

Your Code must address both physical and psychological safety. You need to include requirements for mandatory reporting of hazards and the need to follow reasonable instructions. There should be zero tolerance for violence or aggression. You must also include clauses regarding drug and alcohol compliance. This section fulfills your duty of care regarding the psychological safety of your workers by managing psychosocial hazards.

Use of Company Resources and IT

This section protects your business assets and data privacy. You need rules on internet usage, email etiquette, and confidentiality. It is important to include a disclaimer that employees have no expectation of privacy when using company devices. This is critical for complying with the Workplace Surveillance Act 2005 in NSW and similar laws in other states. If your business has an annual turnover of more than $3 million, you must also ensure this section aligns with the Australian Privacy Principles (APPs) regarding the handling of employee data.

Breaches and Disciplinary Action

You need to be clear about the consequences of breaking the rules. This section should state that breaches may lead to disciplinary action, up to and including dismissal. You must also reference the grievance procedure for employees to report breaches. This creates procedural fairness and ensures your staff know how to raise concerns if the code is violated.

How to Write a Workplace Code of Conduct and Behavioural Standards (Step by Step)

Writing a Code of Conduct does not have to be difficult. You can follow a simple process to create a document that works for your business.

Step 1: Assess Your Risks

Look at your specific industry. For tradies, the risks might include "blue" language on site, failure to wear PPE, or aggressive behaviour towards clients. For office workers, the risks might include social media misuse or discrimination. Use the WHS Risk Assessment Template to identify the behavioural risks in your workplace.

Step 2: Define Your Values

Decide what matters to you. Do you value speed, quality, or customer service above all else? Your code should reflect these values. If you value respect, define what respect looks like in your business. Does it mean no swearing? Does it mean listening to clients without interrupting?

Step 3: Draft the Core Policies

Write the mandatory sections outlined above. Be specific. Instead of saying "employees must be professional," say "employees must not use aggressive language or swear in front of clients." For tradespeople, include practical clauses regarding site cleanliness and PPE compliance. These are standard requirements to satisfy principal contractor conditions.

Step 4: Address Social Media and Right to Disconnect

Modern businesses need to address digital behaviour. Include specific clauses regarding social media use that prohibit conduct that "brings the business into disrepute." This is often tested under general protections laws. You also need to address the new "Right to Disconnect" laws. As of 26 August 2024 for non-small businesses, employees have the right to refuse contact outside working hours. Your code should outline expectations regarding after-hours communication to ensure you do not breach these new laws.

Step 5: Review Against Modern Awards

You must ensure your code does not contravene the applicable Modern Award or Enterprise Agreement. For example, you cannot set standards in your Code of Conduct that are less favourable than the award, such as mandating unpaid breaks longer than the award requires. Use the Modern Award Comparison Tool to check your document.

Step 6: Include a Disclaimer

The document must include a disclaimer stating that it does not form part of the employment contract unless specifically intended. It should also state that it is subject to the relevant Modern Award or Enterprise Agreement. This protects you if you need to update the policy later.

Step 7: Implement and Train

Once written, you need to roll it out. Do not just email it to everyone. Hold a meeting or a toolbox talk to explain the document. Ask staff to sign an acknowledgment to confirm they understand it. This step is vital for proving that staff were aware of the standards if a dispute arises later.

Common Mistakes to Avoid

There are several pitfalls that business owners in Australia fall into when creating these documents. Avoiding these will save you time and money.

Overly Vague Language

Using terms like "professional behaviour" without defining them is a major error. This can lead to unfair dismissal claims if you fire an employee for a "breach" that was not clearly understood or specified. You must define exactly what constitutes unprofessional behaviour in your context.

Unlawful Terms

You cannot include clauses that purport to restrict "workplace discussions." Under the Fair Work Act 2009 (Section 341), employees have a right to discuss their pay, conditions, or unions. Any clause that tries to stop this is invalid and could land you in trouble with the Fair Work Ombudsman.

Ignoring Psychosocial Hazards

Focusing only on physical safety is a common mistake in trades. If you focus solely on wearing boots but ignore behavioural standards like yelling or intimidation, you leave yourself exposed to WHS prosecutions regarding mental health. Safe Work Australia specifically identifies these as psychosocial hazards that must be controlled.

Not Updating the Document

Laws change. The Fair Work Amendment regarding the Right to Disconnect is a recent example. If you are using a document written five years ago, it is likely outdated. You should review your Code of Conduct annually to ensure it still reflects current laws and business practices.

Ignoring State Variations

While WHS laws are harmonised, there are differences. Victoria uses the Occupational Health and Safety Act 2004 (VIC), which has different enforcement mechanisms and duties regarding consultation. If you operate in multiple states, you need to ensure your code complies with the specific legislation in each jurisdiction.

Legal Considerations (AU)

When drafting a Code of Conduct in Australia, you must navigate a complex legal landscape. Your document must align with several key pieces of legislation.

Work Health and Safety (WHS) Obligations

Under the Work Health and Safety Act 2011 (Cth) and state equivalents, you have a primary duty of care. This means you must do what is reasonably practicable to ensure the health and safety of your workers. A Code of Conduct is a primary control measure to manage psychosocial hazards. If you fail to have a code in place and a worker suffers psychological injury due to bullying, you could be found negligent.

Anti-Bullying and Fair Work Act

Section 789FD of the Fair Work Act 2009 defines workplace bullying. Your Code of Conduct is the mechanism you use to set "reasonable management actions" carried out in a reasonable manner. This helps you distinguish between a manager giving instructions and bullying. For small businesses with fewer than 15 employees, adherence to a Code of Conduct is often vital to prove a dismissal was based on "serious misconduct" to satisfy the Small Business Fair Dismissal Code.

Anti-Discrimination Laws

You must comply with federal laws like the Sex Discrimination Act 1984, Disability Discrimination Act 1992, and Racial Discrimination Act 1975. These laws prohibit harassment. State laws, such as the Equal Opportunity Act 2010 in VIC, impose a "positive duty" on employers to eliminate discrimination. Your code must explicitly prohibit sexual harassment and discrimination to meet these obligations.

Privacy and Surveillance

The Privacy Act 1988 (Cth) applies if your business has an annual turnover of more than $3 million. Your code must align with Australian Privacy Principles regarding the handling of employee data. Additionally, if you operate in NSW, the Workplace Surveillance Act 2005 requires you to notify employees if you are monitoring their emails or internet usage. Your Code of Conduct is the best place to provide this notification.

General Protections

The Fair Work Act protects "workplace rights." You cannot take adverse action against an employee because they have a workplace right, such as asking about their pay or making a complaint. Your Code of Conduct must not inadvertently restrict these rights. Ensure you do not include clauses that penalise employees for raising genuine safety concerns or grievances.

Frequently Asked Questions (preview)

Can I put this in my employment contract? Generally, it is better to keep the Code of Conduct separate from the employment contract. A contract creates legal rights that are harder to change. A policy is easier to update as laws change. You should include a disclaimer stating that the code is not part of the contract unless you specifically intend it to be.

What happens if an employee refuses to sign the acknowledgment? If an employee refuses to sign, it does not mean the code does not apply to them. You should record that you provided the document and explained it to them. You can issue a formal letter stating that the policy is mandatory. If they continue to refuse to acknowledge it, this may be a performance issue or a failure to follow a reasonable instruction.

Do I need a lawyer to write this? While you can use templates, complex businesses or those with high risk profiles should seek legal advice. A lawyer can ensure your document does not contain unlawful terms and that it covers specific state legislation. However, for many small businesses and tradies, a clear, practical template written in plain English is a good starting point.

How often should I update the code? You should review your code at least once a year. You should also update it immediately if there is a significant change in the law, such as the introduction of the Right to Disconnect, or if there is a change in your business operations.

Does this apply to contractors? Yes, it should. The "Purpose and Scope" section should explicitly state that the code applies to contractors, subcontractors, and volunteers. This helps you manage the behaviour of everyone on your site, not just your direct employees.