The 5 Crucial Compliance Employment Policies for Australian Businesses

In the modern workplace, clear, comprehensive, and legally sound (whilst being easy to understand) employment policies are essential to ensure compliance obligations are being met and employees are aware of both their entitlements and obligations.

As an employer, navigating the unique employment landscape shaped by both federal and state legislation, makes the need for robust employment policies more critical than ever. In this blog, we will explore the five most important compliance employment policies for businesses to implement and why they are crucial for organisational success.

1. Equal Opportunity Policy

Why is it Important?

In Australia we have stringent anti-discrimination laws that are enforced both at state and federal levels. The Racial Discrimination Act 1975, Sex Discrimination Act 1984, and Disability Discrimination Act 1992 are just a few pieces of legislation designed to protect individuals from discrimination based on personal attributes such as race, gender, disability, age, and sexual orientation.

An Equal Opportunity policy is vital to confirm your commitment to creating a fair and respectful workplace and to reinforce that all employees will be treated fairly, consistently and equitably, free from harassment or prejudice. This policy not only upholds the legal rights of employees and the responsibilities of employers, but also promotes an inclusive and diverse workplace culture.

Key Elements of the Policy:

• A clear definition of discrimination, harassment, bullying and victimisation
• Procedures for reporting any instances of discrimination, harassment, bullying or victimisation
• Guidelines on promoting inclusivity and equity across the whole employment lifecycle
• Pathways to raise any concerns
• Employer and employee responsibilities in contributing to and maintaining a respectful workplace
• Alignment and reference to a Grievance and Complaints policy

Importance for Your Business:

Discrimination claims can result in costly litigation and damage to a company’s reputation. Beyond legal compliance, promoting a diverse and inclusive workforce has proven to enhance creativity & productivity as well as increase employee engagement. Implementing an Equal Opportunity policy demonstrates your commitment to providing a fair and equitable work environment, which can aid in attracting and retaining top talent.

2. Sexual Harassment Policy

Why is it Important?

Sexual harassment can occur in any workplace. With 1 in 5 people experiencing sexual harassment in the workplace in the last 5 years, sexual harassment is not a women’s issue, it’s a societal one and every workplace can contribute to addressing it.

All organisations have a positive duty to take ‘reasonable and proportionate measures’ to eliminate sexual harassment as far as possible. This positive duty needs to be taken to prevent such behaviours regardless of whether anyone had made a complaint.

Having a robust Sexual Harassment policy is one step towards meeting your positive duty obligations.

Key Elements of the Policy:

• Definition of sexual harassment and examples
• Commitment to a zero tolerance approach to sexual harassment
• Reporting procedures for employees experiencing sexual harassment
• Investigation and resolution processes
• Support mechanisms for affected employees
• Details of external support agencies and organisations

Importance for Businesses:

To meet your legislative requirements, having a Sexual Harassment policy is essential.

The personal, emotional and financial toll of sexual harassment can be significant, both for individuals and employers. A robust policy details employee rights and obligations and helps to foster a culture of respect, fairness and equality.

3. Leave Policies

Why are they Important?

Well-structured Leave policies ensure that both employers and employees understand their rights and obligations regarding leave entitlements. Employees are entitled to various types of leave under the Fair Work Act 2009, including annual leave, personal leave (sick/carer’s leave), parental leave, and long service leave.

Such policies provide transparency on how leave is accrued, how and when it can be taken, and any relevant processes for applying for or approving leave. Robust policies will also outline any eligibility criteria, for example in what circumstances someone can take compassionate leave; and also provide details and support if an employee is experiencing family and domestic violence.

Leave Policies also allow you to capture any additional benefits you provide your team, such as Study Leave, Volunteer Leave, Purchased Leave and/ or Birthday Leave.

Key Elements of Leave Policies:

• All leave types are captured, including long service leave, compassionate leave, family & domestic leave, community service leave
• Entitlements and how they accrue for the various types of leave
• Processes for requesting and approving leave
• Notice requirements

Importance for Your Business:

Clear leave policies reduce misunderstandings between employees and leaders, ensuring that everyone is on the same page regarding entitlements. This helps prevent confusion and helps promote strong communication and respect. In addition, well-communicated leave policies support employees achieve flexibility and work-life balance, improving employee satisfaction and productivity.

4. Code of Conduct

Why is it Important?

A Code of Conduct outlines the standards of behaviour expected from employees. It serves as a guide for employees on how to act and conduct themselves, fostering a professional, ethical, and respectful environment. It covers areas such as workplace behaviour, conflict of interest, use of company resources, confidentiality, and interaction with clients or customers.

A Code of Conduct also provides clear consequences for breaches, ensuring that employees understand the ramifications of behaviour that falls ‘outside the lines’. This helps to mitigate risks associated with inappropriate behaviour and encourages the right behaviours, thus contributing to a positive and respectful workplace culture.

Key Elements of a Code of Conduct Policy:

• Expected behaviours and ethical standards
• Provisions for conflicts of interest and confidentiality
• Guidelines for the use of company resources
• Disciplinary procedures for breaches of the policy

Importance for Your Business:

A comprehensive Code of Conduct helps to establish clear expectations and accountability across all levels of an organisation. It minimises the risk of legal and reputational issues stemming from employee misconduct, and it can improve workplace morale by promoting fairness and respect.

5. Health and Safety Policy

Why is it Important?

A Health and Safety policy is a mandatory requirement under Australian law and forms the backbone of ensuring that businesses provide a safe working environment for all employees. This policy outlines the responsibilities of both employers and employees when it comes to creating and maintaining workplace safety.

Health and safety obligations now extend to cover employees’ mental health with employers required to manage the risk of psychosocial hazards in the workplace. A psychosocial hazard is anything that could cause psychological harm, that is, harm someone’s mental health.

Key Elements of a health and safety policy:

• Individual, leader and organisational responsibilities for maintaining safety
• Clear guidelines on identifying and managing workplace hazards
• Emergency response procedures (e.g., fire evacuation plans, medical emergencies)
• Reporting mechanisms for injuries, accidents, or unsafe conditions
• Employee and employer responsibilities for maintaining safety
• Commitment to employee mental health
• Reference to supporting policies, such as Equal Employment Opportunity and Sexual Harassment

Importance for Businesses:

The cost of non-compliance with health and safety regulations can be devastating, both financially and reputationally. Penalties for breaches can result in hefty fines or even criminal prosecution. More importantly, a robust health and safety policy demonstrates a commitment to the wellbeing of employees, reducing the risk of workplace injuries and illness and creating a positive and productive environment.

The success of any business is closely linked to the wellbeing and engagement of its employees. By implementing these important compliance employment policies, your businesses can ensure it is meeting its legal obligations while creating a positive, productive, and inclusive workplace.

In addition to these compliance policies and in an increasingly competitive talent market, businesses that prioritise comprehensive policies as well implementing additional benefits to add to the overall employment value proposition (EVP), are better positioned to attract top talent, retain valued employees and achieve long-term success.

If you want to have a chat about your Employment Policies or any other HR challenges, book a call with Amanda to explore how Evans Faull can support you and your business.