Employee Code of Conduct Policy

What is an Employee Code of Conduct Policy?

An Employee Code of Conduct Policy is a set of rules, principles, values, and behaviours the employees are expected to follow while working for an organization and defines the desired behaviour. An Employee Code of Conduct Policy clarifies the organization's vision, values, and principles to both the internal and external stakeholders and can be used as a benchmark to evaluate the performance and conduct of the employees.

What is the difference between an Employee Code of Conduct Policy and an Employee Handbook?

An Employee Handbook covers a broader range of information including organization policies, benefits, and procedures whereas an Employee Code of Conduct Policy focuses specifically on ethical standards and behavioural expectations from the employee.

What is the difference between an Employee Code of Conduct Policy and an Employment Agreement?

An Employee Code of Conduct Policy applies to all the employees of the organization despite their positions or roles in the organization. On the other hand, an Employment Agreement is a personalized agreement entered into between an organization and an employee.

Is it mandatory to have an Employee Code of Conduct Policy?

No, it is not mandatory. However, it will help to have a clear understanding of behavioural expectations and promote a professional and positive work environment.

What can be the duration of an Employee Code of Conduct Policy?

The Employee Code of Conduct Policy remains in effect as long as the organization operates. It should be reviewed and updated to ensure compliance with updates in laws, and industrial standards.

What has to be done once an Employee Code of Conduct Policy is ready?

Once the Employee Code of Conduct is filled out and printed, it can be circulated to the employees either as soft copies or physical copies; in either case, it is better to get the acknowledgement receipt from the employees.

It is always better to make this Employee Code of Conduct available to all employees and other stakeholders of the company.

What are the other documents used along with an Employee Code of Conduct Policy?

The Employee Code of Conduct Policy can be used by any type of organization despite their size or type of business and can be used as a supplementary document to the Employment Agreement, POSH Policy, Non-Compete Agreement, Remote Work Policy, Employee Privacy Policy and Employee Handbook.

What happens if an employee violates the Employee Code of Conduct Policy?

In case any employee violates the Employee Code of Conduct, the organization can set a progressive disciplinary action including verbal warning, warning letter, suspension, and dismissal from employment.

What must an Employee Code of Conduct Policy contain?

An Employee Code of Conduct Policy must contain the following clauses:

• Introduction: Purpose and scope of this policy.
• General Conduct: Expectations for professional behaviour and integrity.
• Conflict of Interest: Guidelines on avoiding conflict of interest.
• Use of Company Property: Appropriate use of company assets and resources.
• Anti-Harrassment: Prohibition of harassment, bullying and discrimination.
• Dress Code: Expectations for professional attire while on duty.
• Attendance and Punctuality: Guidelines on work hours, attendance and leave policies.
• Health and Safety: Precautions to be taken by the employees while on duty.

Which laws are applicable to an Employee Code of Conduct Policy?

The employment laws are covered under the respective Shops and Establishment Acts of the states concerned. In general, rules under the Indian Contract Act, 1872 will be applicable.

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