HR Management
Workplace Code of Conduct: A Guide for Australian Employers
A well-drafted code of conduct sets the behavioural foundation for your entire workplace. It tells employees what you expect, gives you a framework for managing misconduct, and protects your business when things go wrong. Here is how to write one that actually works.
What the Law Says
While no single law mandates a code of conduct, multiple pieces of legislation make having one practically essential:
- Fair Work Act 2009 — The FWC routinely considers whether an employer had clear policies when assessing unfair dismissal claims. A code of conduct that was communicated and consistently applied strengthens the employer's defence.
- Work Health and Safety Act 2011 — Employers have a primary duty of care to provide a safe work environment. A code of conduct addressing bullying, harassment, and violence helps discharge this duty.
- Sex Discrimination Act 1984 — Under the positive duty provisions (effective December 2023), employers must take reasonable steps to prevent sexual harassment. A code of conduct is a key element of this.
- Anti-Discrimination legislation — State and federal anti-discrimination laws create vicarious liability for employers. Having a code of conduct with clear anti-discrimination provisions is a defence to vicarious liability claims.
What to Include in Your Code of Conduct
Purpose and scope
State why the code exists, who it applies to (employees, contractors, volunteers), and where it applies (workplace, offsite events, online).
Professional behaviour standards
Define expected standards of professionalism, courtesy, and respect in all workplace interactions.
Anti-discrimination and harassment
Zero-tolerance statement on discrimination, harassment, sexual harassment, and bullying with clear definitions and examples.
Conflicts of interest
How to identify and declare conflicts, including secondary employment, personal relationships at work, and financial interests.
Confidentiality and privacy
Obligations regarding business-sensitive information, customer data, and intellectual property.
Use of company resources
Rules for using company property, technology, vehicles, email, and internet, including personal use guidelines.
Social media policy
Guidelines for social media use as it relates to the business, including what employees can and cannot say about the company online.
Drug and alcohol policy
Clear expectations about being fit for work, including rules about alcohol at work events and procedures for testing if applicable.
Reporting and complaints
How employees can report breaches, including who to report to, confidentiality protections, and whistleblower protections.
Consequences for breach
Graduated consequences from counselling and warnings through to termination for serious misconduct.
How to Enforce Your Code of Conduct
- Distribute and acknowledge — Give every employee a copy of the code and require written or electronic acknowledgement. Include it in onboarding packs for new starters.
- Train regularly — Conduct annual training on the code, with specific sessions on topics like harassment, discrimination, and social media use.
- Lead by example — Management must model the behaviour expected. Double standards destroy credibility.
- Investigate breaches promptly — Act on reports quickly and follow a fair investigation process. Delays suggest you do not take breaches seriously.
- Apply consequences consistently — Similar breaches should result in similar consequences regardless of the employee's position. Document every decision.
- Review and update annually — Laws change, workplaces evolve, and lessons are learned. Update the code to reflect current requirements and redistribute.
Common Mistakes and How to Avoid Them
Mistake: Writing a code nobody reads
Fix: Keep it clear, concise, and written in plain English. Use examples and scenarios. Supplement with regular training sessions.
Mistake: Not getting employee acknowledgement
Fix: Without proof an employee received and understood the code, it is very difficult to rely on it in disciplinary proceedings. Use signed acknowledgement forms.
Mistake: Applying it inconsistently
Fix: If a senior manager gets away with behaviour that a junior employee is disciplined for, you undermine the entire code and create legal risk.
Mistake: Not updating it when laws change
Fix: The positive duty obligations, right to disconnect, and psychosocial hazard regulations all require policy updates. Review annually.
Penalties and Consequences for Employers
While there is no direct penalty for not having a code of conduct, the absence of one exposes you to:
- Unfair dismissal findings — without clear policies, disciplinary actions are harder to defend at the FWC.
- Vicarious liability — without anti-discrimination policies and training, employers cannot rely on the "reasonable precautions" defence.
- WHS prosecutions — regulators expect employers to have policies addressing psychosocial hazards including bullying and harassment.
- Positive duty breaches — the Australian Human Rights Commission can investigate employers without a complaint and issue compliance notices.
When to Get Professional Help
Consider engaging a qualified HR consultant when you:
- Need to draft a code of conduct from scratch
- Want to update your existing code to cover new legal obligations
- Are dealing with a serious breach and need guidance on the disciplinary process
- Want to implement an effective training program around your code
Jordan Firme Business Consultants drafts bespoke codes of conduct tailored to your industry, workforce, and risk profile.
Frequently Asked Questions
There is no standalone legal requirement for a private sector employer to have a code of conduct. However, many modern awards and enterprise agreements reference workplace policies, and having a well-drafted code of conduct is essential for defending disciplinary actions, dismissals, and bullying or harassment claims. It is considered best practice by the Fair Work Commission.
A comprehensive code of conduct should cover expected standards of behaviour, dress code, use of company property and technology, confidentiality and privacy, conflict of interest, anti-discrimination and harassment, social media use, drug and alcohol policy, reporting procedures, and consequences for breaches.
Yes, but the severity of the breach and the process you follow matter. Minor breaches typically warrant a warning, while serious breaches (such as fraud, violence, or serious harassment) may justify summary dismissal. You must always follow a fair process — give notice of the allegation, allow the employee to respond, and consider their response before making a decision.
Consistency is key. Apply the code equally to all employees regardless of their position. Document every breach and the action taken. Ensure all employees have acknowledged receipt of the code and that it is regularly reviewed and updated.
Best practice is to review your code of conduct annually or whenever there are significant legislative changes. You should also review it after any incident that reveals a gap in the policy. Every time the code is updated, ensure all employees receive and acknowledge the new version.
You can extend your code of conduct to cover contractors, subcontractors, and volunteers who perform work at your workplace. This is particularly important for WHS obligations and anti-discrimination compliance. Make sure this is clearly stated in the code and in any contractor agreements.
Related Resources
Employee Handbook Guide
Everything to include in your employee handbook.
Disciplinary Process Guide
Fair process for managing misconduct.
Workplace Bullying Guide
Employer obligations for preventing bullying.
HR Compliance Audit Tool
Check your HR policies and procedures.
Policy Development Services
Custom codes of conduct tailored to your industry.
Need Help With Your Code of Conduct?
Our HR consultants can draft, review, or update your code of conduct to ensure it meets all legal requirements and protects your business.
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