Why have Human Resources Policies?
How many times have you heard (or said), ‘we need less red tape’, ‘it’s bureaucracy gone mad’ or some similar phrase to capture just how rule bound we are in business or in society as a whole? There is no doubt that at times, we all feel the frustration of seemingly endless rules governing how we work, rest and play.
But equally, whenever something goes wrong, how often do we have an inquiry and hear it was a fundamental failure of policy or process that caused the problem? It is this need for some certainty and guidance in business that makes a good set of the HR procedures and policies ‘an essential business tool’, a ‘necessary evil’ or most likely, both. At their core, your HR policies and procedures are a set of flexible guide rails or rules, which give:
At their core, your HR policies are a set of flexible guide rails or rules, which give:
- employees an understanding of what is expected of them
- managers a set of standards they can manage to
- everyone an idea of the consequences of a failure to follow them
The key then, is making them clear and keeping them ‘alive’ as guide rails and not having them gathering dust only to be hauled out when something goes wrong.
HR Policy Design
The design of your HR policies depends on the nature of employment laws, your organisation and who the policies are designed to cover. In particular you should think about the
- size of your organisation – how many people in the organisation need to be covered by a policy?
- complexity, or roles and responsibilities – does a policy cover all workers and are the rules the same rules for junior vs senior, casual vs part time/full time vs independent contractor?
- regulatory environment – do you operate in one environment (state), more than one (national) or in many (international)?
All of these will help define the type of policy framework you need. To simplify things, let’s look at two methodologies of HR policies and policy structure: Global HR Policy Framework and Simple Policy Framework.
Global HR Policy Framework
Used by larger, often global organisations, the framework consists of a set of global policies setting out the overarching standards of employee development and human resource policies that apply across the organisation. The HR policies are by necessity more generic, focusing on the principles of the policy.
Such policies are then supported by a more complex base of local policies, laws, procedures and guidelines that can operate within, for instance, a national framework of compliance.
The framework is complex and requires an extremely robust system to review, refine, consult and update at global and local level. The burden to ensure compliance put on a small or medium sized business makes such a framework unrealistic.
Simple Policy Framework
Better suited to small and medium sized businesses is a more simple HR policy development framework. For this type of design, policy statements and procedures can often be combined into a single document. A typical example would be a Parental Leave policy which contains both the entitlements around parental leave and instructions around applying for the leave, notifying return to work etc.
Such policies must still be regularly reviewed and updated but the simple structure makes this much less of a burden.
Not sure where to start?
Book a free call with an experienced member of our team to discuss your needs, and we’ll be able to offer you as little or as much support as you need to create and deploy new policies for your organisation.
HR Policies and Employment Contracts
A common question asked is: ‘Do I need a policy if the contract covers the same ground?’
Let’s start by looking at the differences between a contractual term and a policy. The obvious difference is that a term in a contract of employment has been agreed by both parties and can’t be changed without both parties agreeing to the change. As such, most contractual terms are (if well written) precise in their scope and meaning and less broad than the information covered in a policy.
A policy is not (or at least should not be) an agreed contractual term. This means it is possible to change corporate policies much more easily than contractual terms. This also means that company policies can be more general and wide ranging in scope.
For instance, it is very common for a contract to set out the salary of the employee as a clear agreed amount of remuneration for the work done. A remuneration policy, as it is not contractual, may set out arrangements for salary reviews, incentive payments or other packaging options for new employees. This means that these arrangements can be reviewed and changed much more easily and crucially, without the agreement of both parties. Please check with your employment lawyer about changing your contractual agreements.
So while the contract of employment is very specific and hard to change, a policy can be more wide ranging and subject to change.
What Policies Do I Need?
Again this depends on the type of organisation, size and complexity. While there is no general legal requirement for any workplace policy, it would be very unwise for instance, not to have a policy on Workplace Health and Safety setting out how you are meeting your legal requirements to maintain a safe and healthy workplace for all your employees.
While there is no definitive list, the list of possible policies you need keeps on growing. The recent Closing Loopholes 2 legislation passed by Australian Federal parliament has many people suggesting a clear understanding and new policy on the ‘Right to Disconnect’ is now needed.
As a start, take a look a the list below and check whether you have any or all of these in place:
- Code of Conduct
- Discrimination Harassment and Bullying
- Sexual Harassment
- Workplace Health and Safety
- Leave Entitlements
- Misconduct and Disciplinary
- Grievance
- Flexible Working
- Travel and Expenses
- Drugs and Alcohol
- Diversity, Equity and Inclusion
There are many more, but this is a good start when considering what you may need.
Policy Structure
When drafting a policy, think about including the following structure:
- Purpose – what is the policy there for?
- Scope – who and what situations are covered?
- Definitions – what the various terms you are using mean
- Main content – the principles and rules of the policy, and the processes involved in ensuring they are followed
- Version control and review – which version is this, who has authorised it and when will it be reviewed?
While most organisations will want these policies to be a reflection of the organisation’s culture, take care not to make your wording too ‘funky’. Policies must be clear, especially around anything where a breach will be seen as misconduct.
HR Policy Reviews and Understanding
Some final important points to remember:
Review Your Policies
If the last two years, with its many changes to government legislation have taught employers and employees anything, it is that employment law is not static and, as such, you need to review your policies to ensure they are still compliant with the law.
There are two schedules to consider when reviewing your policies:
- Set a regular review date. Every two years is reasonable. This allows you to review the policy to ensure it is still relevant and nothing has changed in the organisation’s practices that mean it is out of date.
- Whenever there is a relevant change. Keep up to date with what is happening and ensure you change your policies to keep up to date, when the change occurs. For instance in the last two years, here are some of the policy changes you may have needed to make:
- Pay secrecy
- Family and domestic violence leave
- Sexual harassment
- Flexible working
- Fixed term contracts
Visit our ER LEGISLATION CHANGES RESOURCE HUB to learn more about recent ER legislation, including free ebooks and instant access webinars.
Ensuring Understanding
To enforce a policy or enforce disciplinary action for employees breaching the policy, you will need to show that the employee had read and understood the policy.
Your policies need to be easy to access and you need a record from everyone the policy covers that they are aware of the content and understand it.
Induction training is a good time to introduce policies and gain acknowledgement of them but remember if there is substantive change to a policy you must consider reissuing safety policy and gaining a new acknowledgement.
Need Help With Your HR Policies?
If you don’t have a set of policies or feel it’s time yours and workplace policies were reviewed and brought up to date, contact Employee Matters now to book a discussion on employment issues and how we can help:
Email: info@employeematters.com.au
Phone: (02) 8021 4206
or drop us a line via our contact form.
