Welcome to another episode of HR to Go, where we dive into the topics that shape your workplace. Today’s episode is titled "Fine Print, Big Impact: Policy Power," and we’re going to explore the hidden strength behind workplace policies—how they may seem like small details but can have significant effects on your organisation’s culture, efficiency, and ability to manage your employees.

Policies are those often-overlooked documents we sign when we start a job or when a new regulation comes into play. But, have you ever stopped to think about the real power they hold? In today’s episode, we’re unpacking how policies, the fine print of your workplace, can drive big changes and safeguard your organisation in more ways than you might imagine.

Let’s start with the basics. The purpose behind policies. Why do we even need policies? Policies serve as the backbone of any organisation, providing a framework for consistent decision-making, setting expectations, and ensuring compliance with legal requirements. They’re not just there to check a box — although given the dusty outdated versions I have been handed over the years – this seems to be a common theme! Rather, they should play a crucial role in maintaining order and protecting both the company and its employees.

Think about this: without clear policies, your workplace would be like a ship without a rudder, drifting aimlessly and vulnerable to every storm that comes its way. Policies anchor your organisation, offering guidance on everything from employee behaviour to operational procedures.

Now, let’s talk about the fine print—those details in your policies that might seem minor but can have a major impact. Take, for example, a seemingly simple policy such as your Uniform Policy. It might specify what’s appropriate to wear in the office, but dig a little deeper, and you’ll see that it’s also shaping your company’s culture, influencing how clients perceive your brand, and even affecting employee morale.

Another example might be the way your organisation handles remote work. A policy that clearly outlines expectations for remote employees not only ensures productivity but also fosters trust and flexibility, which are key to retaining top talent in today’s competitive job market.

Beyond guiding behaviour and setting expectations, policies are also your best defence when it comes to managing employee behaviour or defending a decision such as termination. In many cases, having well-drafted, up-to-date policies can be the difference between a quick resolution and a costly legal battle.

For instance, consider a policy on workplace harassment. It not only defines what constitutes unacceptable behaviour but also lays out the process for reporting and addressing issues. This isn’t just about compliance; it’s about creating a safe and respectful environment for all employees. And in the event of a dispute, having this policy in place can protect your organisation from legal repercussions.

Policies also allow you to achieve compliance with the law. Not only is it best practice to have policies in place, but it is also a legal requirement to have certain policies in place. For example, for some employers there is a need to have a Privacy Policy, and all employers should have Sexual Harassment policy in place to comply with new sexual harassment laws.

Ok, so hopefully we are all on the same page now, and in agreement about the value and importance of policies in the workplace.

So, I imagine you are now starting to think about how you ensure that your policies are effective. The key is to make them clear, concise, and aligned with your company’s values and goals. Involve key stakeholders in the drafting process to make sure the policies reflect the realities of your workplace. And don’t forget to review and update them regularly—an outdated policy can be as dangerous as not having one at all. We suggest that your policies should be reviewed annually, but obviously also as you become aware of any changes to laws, regulations or legislation.

If you are considering outsourcing the drafting of policies, I would suggest you make sure you are partnering with a provider that will assist you in tailoring policies to your business. Time and time again we see policies from clients that have no relevance to the workplace, have information that is at odds with their Award (such as annual leave or redundancy provisions) or have onerous requirements in them that are almost impossible to follow.

Communication is also critical. A policy that sits in a binder on a shelf won’t do much good. Make sure your employees understand the policies, know where to find them, and feel comfortable discussing any concerns or questions they might have with you or your management team. It is important to note at this point, if your employees haven’t read your policies then you may find yourself in hot water when you try to use those policies to discipline or manage behaviour in the workplace. There is plenty of case law to support the fact that an employee cannot be held responsible for actions that are at odds with a policy if they were not aware of the policy and requirements under the policy.

To bring it all together, I thought I would share some real-world examples of how policies have had a big impact.

In the first case I want to share, the employee was dismissed for deleting data from a work-issued mobile phone, with the employer citing the IT procedure manual which prohibited the removal of data from work-issued devices without authorisation.

As a result, the employee’s role was terminated and she then commenced unfair dismissal proceedings in the FWC.

While the FWC considered the act of deleting data as a valid reason for terminating the employee’s employment, it determined that the dismissal was harsh, unjust and unreasonable because:
• The IT procedure manual that the employee had allegedly breached was “long, complex and legalistic”.
• The manual did not clearly state that deleting data from a mobile phone without authorisation would constitute serious misconduct and lead to significant disciplinary outcomes up to and including dismissal.
• Managers and other employees in the organisation routinely deleted data from their mobile phones without repercussions.

The outcome was the employee was reinstated to her position and compensated for lost pay.

You can see this decision underscores the importance of clarity and consistency in workplace policies and their enforcement. While the act of deleting data was deemed a valid reason for termination, the dismissal was ultimately ruled harsh, unjust, and unreasonable. This case highlights several critical points: policies should be clearly communicated and understood by all employees, the consequences of policy breaches must be explicitly stated, and enforcement should be consistent across the organisation.

In the next case, the employee was dismissed from his employment as a butcher for refusing to remove his eyebrow ring while at work. It was found that the employee refused to comply with a lawful direction from his employer which was consistent with company policy, and it was held was a valid reason for dismissal. This case illustrates the significant impact that well-written, clear policies, when consistently communicated and enforced, can have for an employer.

In conclusion, policies might be the fine print of your workplace, but their impact is anything but small. They shape your business culture, protect it from legal risks, and ensure that everyone is on the same page. So, the next time you review a policy, remember the power it holds and the important role it plays in your organisation’s success.