Contact Us
code of conduct policy

Code of Conduct

HR Policies

19 June 2025 (Last updated 3 Sept 2025)

Share on:

A well-crafted code of conduct serves as a foundational document that outlines company policies relating to standards of professional behaviour and ethical principles expected of all employees.   

This guide delves into the meaning, importance, and practical examples of codes of conduct in workplaces. It offers employers and employees in New Zealand a comprehensive understanding of how these guidelines shape corporate culture and personal conduct.  

Understanding the Code of Conduct 

A code of conduct is an essential document that outlines the standards of appropriate behaviour, ethical principles, and professional practices you expect of all employees within your organisation. It’s a comprehensive guide detailing the company values and ethical framework underpinning daily operations and decision-making processes.   

This code is designed to assist company employees in understanding their obligations and responsibilities, ensuring their actions align with the company’s core values and legal requirements. By clearly defining acceptable and unacceptable behaviours, a code of conduct helps to generate a positive and respectful workplace culture.  

Why is a Code of Conduct important?

The importance of an employee code of conduct in the workplace cannot be understated. It acts as a cornerstone for establishing a culture of integrity, accountability, and professionalism. A well-implemented code: 

  • Guides behaviour: It provides employees with clear guidelines on how to conduct themselves, promoting ethical decision-making and reducing the likelihood of misconduct. 
  • Ensures compliance: Outlining legal and ethical standards helps the organisation and its employees comply with regulatory requirements and avoid legal issues. 
  • Promotes a positive work environment: A code of conduct sets the tone for a respectful and inclusive workplace where all employees are valued and treated fairly. 
  • Protects the organisation's reputation: Upholding high standards of conduct enhances the company’s image and credibility, building trust among clients, partners, and the broader community. 
  • Mitigates risk: It serves as a risk management tool, identifying potential areas of ethical vulnerability and providing mechanisms to address them. 

Step-by-Step Guide to Creating a Workplace Code of Conduct 

Developing an employee code of conduct requires thoughtful consideration of the unique aspects of your organisation, including its values, industry standards and legal requirements. Consider these initiatives when crafting an effective code of conduct for your New Zealand SME.  

1. Gather information and assess needs 

  • Identify key stakeholders: Involve representatives from management, human resources, and different departments to understand their perspectives and concerns. 
  • Review relevant legislation: Ensure your code aligns with current New Zealand employment laws and regulations, including the Employment Relations Act 2000 and the Privacy Act 2020. 
  • Research industry best practices: Look at codes of conduct from similar organisations in your industry for inspiration and learn from their approach. 

2. Define your company values and desired behaviours

  • Brainstorm core values: Identify your organisation's fundamental values that guide ethical decision-making and professional conduct. Examples include integrity, respect, fairness, innovation, and customer focus. 
  • Translate values into behaviours: Define specific behaviours that exemplify your company values. For instance, under "respect," you might include treating colleagues with courtesy and avoiding discrimination. 

Key elements often addressed in workplace codes of conduct include: 

  • Professional integrity and ethics: Standards for honesty, integrity, and ethical decision-making. 
  • Compliance with laws: Adherence to all relevant laws, regulations, and standards governing the organisation's operations. 
  • Respect and fair treatment: Guidelines to ensure respect, fairness and non-discrimination in all interactions. 
  • Confidentiality and privacy: Policies to protect sensitive information and respect privacy rights. 
  • Conflict of interest: Identifying and managing potential conflicts of interest. 

3. Develop the Code of Conduct document

  • Structure the document: Divide the code into clear sections, addressing key areas like ethical conduct, workplace behaviour, use of company property, confidentiality, social media use, dress code and substance abuse policy. 
  • Use clear and concise language: Ensure the code is easy to understand for all employees, regardless of their education or background. 
  • Maintain a professional tone: Use professional language while remaining approachable and respectful. 
  • Include specific examples: Provide concrete examples to illustrate the types of behaviours expected and prohibited under each section. 
  • Outline reporting procedures: Clearly explain how employees can report potential violations of the code, ensuring a safe and confidential process. 

4. Obtain legal review 

  • Consult with an employment lawyer or HR specialist: Seek legal advice to ensure your code complies with current employment laws and best practices. This helps minimise potential legal risks and ensures the code is enforceable. 

5. Communicate and train employees 

  • Develop a communication strategy: Utilise various methods to inform employees about the code, including company meetings, printed handouts, and online resources. The code of conduct should also be referenced in the employment agreement. 
  • Conduct training sessions: Organise training sessions to explain the code's contents in detail, answer employee questions, and clarify expectations. 
  • Incorporate the code into onboarding: Include the code of conduct in the onboarding process for new hires, ensuring they understand their responsibilities from the start. 

6. Implement and enforce the code 

  • Establish a fair and consistent enforcement process: Develop clear procedures for investigating reported violations, including gathering evidence, providing an opportunity for the employee to respond and applying appropriate disciplinary actions, which may include termination. 
  • Maintain confidentiality: Ensure all parties involved in the investigation and disciplinary process are treated with respect and confidentiality. 

7. Review and update regularly 

  • Schedule periodic reviews: Regularly review the code of conduct to ensure it remains relevant, effective, and compliant. This might be every one to two years or more frequently, depending on changes in your organisation, industry, or legal landscape. 
  • Seek employee feedback: Encourage employee feedback during the review process to gather suggestions for improvement and ensure the code reflects their concerns. 

Additional Tips: 

  • Maintain an accessible format: Make the code readily available to employees in a format that is easy to access, such as a printed handbook or on the company intranet. 
  • Promote open communication: Encourage employees to raise concerns about potential violations of the code without fear of reprisal. 
  • Lead by example: Management should demonstrate the behaviours outlined in the code, setting a positive tone for the entire organisation. 

Code of Conduct examples 

While codes of conduct are tailored to each organisation’s specific context and needs, several common elements are often included: 

  • Ethical standards: A commitment to integrity might be demonstrated through policies on honesty in communications, transparency in financial reporting, and fairness in competition. 
  • Workplace behaviour: Guidelines might cover issues like harassment, discrimination, and workplace safety, ensuring all employees feel respected and secure. 
  • Conflict of interest: Employees might be instructed to avoid situations where personal interests could conflict with those of the organisation or its clients. 
  • Confidentiality: Protecting sensitive information is crucial, with policies outlining how employees should handle and secure proprietary or client information. 
  • Compliance with laws: This ensures that employees are aware of, and adhere to, the legal standards relevant to their role and the industry. 
  • Stewardship of resources: Ensuring all employees use all forms of company resources responsibly, with misuse of company equipment, violation of copyright laws or damage to company property strictly prohibited. 
  • Social media and online behaviour: Establish guidelines for the responsible use of company technology and online platforms. Discourage actions that could damage the company's reputation or create conflicts with colleagues. 
  • Dress code and professional appearance: Define the appropriate attire you expect employees to wear based on the company's industry and work environment. Maintain a professional image while allowing for individual style and cultural considerations. 
  • Alcohol and drug policy: Outline expectations regarding alcohol and drug use in the workplace and during work hours. Provide support and resources for employees seeking help with substance abuse. 

Industry examples  

  • Tech industry: Emphasising data protection, intellectual property rights, and innovation while ensuring responsible use of technology. 
  • Healthcare sector: Prioritising patient confidentiality, informed consent, and ethical medical practices. 
  • Finance and banking: Highlighting compliance with financial regulations, transparency, and avoidance of conflicts of interest. 

Moving forward with your Code of Conduct 

A comprehensive code of conduct is a living document that evolves with your organisation. Regular reviews and updates ensure it remains relevant and effective in guiding employee behaviour and maintaining organisational integrity. 

Embark on the Journey: Crafting and implementing a code of conduct is a significant step toward fostering a positive and ethical workplace culture. It’s an investment in your organisation's future, promoting a safe, respectful, and professional environment for all employees.  

Contact Peninsula today for free initial advice about employment relations and health and safety support. 

Have a question?

Have a question that hasn't been answered? Fill in the form below and one of our experts will contact you back.

By clicking submit you consent to our Privacy Policy

Related Guide Articles

HR Policies

Long-Term Illness

It can be challenging when one of your employees has a long-term illness. You have to balance your concern for their health with the needs of your business. If you don’t want to expose your business to the risk of a claim, you can neither terminate their employment due to their long-term illness, nor can you treat them less favourably because of their illness. What is considered long-term sickness? The definition of long-term sickness can vary from employer to employer. Under the Fair Work Act, an employee is protected from dismissal, when on a temporary leave of absence due to illness or injury, for up to three consecutive months or three months over the last twelve months. An employer may be on sick leave as long as the employer allows it. An employee has a right to request absence from work due to illness and injury, but an employer can ask the employee to provide reasonable evidence to support their request and to pay any entitlements. Once the employee has no more paid sick leave left they can be on unpaid sick leave. Things to remember When an employee runs out of paid sick leave and is still unfit for work, they can take unpaid leave in the form of extended sick leave. If they are absent due to illness for at least three months either consecutively or over the last year, or longer if they have lodged a workers’ compensation claim, they may not be protected from dismissal if they are on unpaid leave at the time. Even so ending the employee’s employment may still not be lawful if no procedurally fair process is followed. Employers are advised to tread with extreme caution with respect to actions they take, including termination of employment, in these circumstances. One safeguard is to have an absence policy. Always treat employees on sick leave in a fair and reasonable way and avoid medical discrimination in the workplace. Creating a Long Term Sickness Policy Keep your employees informed when it comes to long-term sickness with a long term sickness absence policy in your employee handbook. The policy should set out the expectations and procedures for employees, employers and management to follow in case of absence due to sickness. Some of the key information to include is: What is classified as a long-term illness? What reasonable evidence do employees need to provide? How much sick leave are employees entitled to receive? Can they use holiday or annual leave entitlements if they run out of paid sick leave? What is the process for returning to work? Make sure your employees read and understand the long term sickness policy and have them sign off on it to confirm they have understood. Causes of Long-Term Sickness Absence A long term sickness absence can be caused by a range of diseases or conditions, or due to a long recovery from an injury. A long term sickness can be either physical or mental. Some causes of a long term absence due to sickness include: Cancer treatment Recovery from surgical procedures Recovery from joint, ligament, tendon or muscle injury Mental stress or mental illness Serious infection or disease Long-Term Absence Due to a Disability Be careful how you manage an employee who is absent for a long period of time due to a disability. Section 351 of the Fair Work Act states that you must not take adverse action against an employee (e.g. by terminating their employment) because of a physical or mental disability. There are circumstances where may be unreasonable for an employee with a disability to return to work at your workplace. For instance, if the disability: Prevents the employee from being able to fulfil the inherent requirements of their position Poses a health and safety risk to the employee and other staff, clients, and customers. When an employee with a disability is not able to perform their current role, you must consider any reasonable adjustments that could be made to allow the employee to return to work. You could try to modify or reduce the number of tasks the employee performs in their current role. Or you could offer suitable alternative employment within the company with a role that better fits the employee’s needs. Alternatively, you could negotiate with the employee to set up a flexible working arrangement (e.g. reduce work hours due to ill health), so they can return to work. Any suggestions made by the employee should be considered in depth. Where an employee is not able to perform the inherent requirements of the role, even with reasonable adjustments, there may be a valid reason for a capability dismissal and a defence against a claim. Flexible Working Arrangements Employees who have worked for the same employer for more than 12 months can request a flexible working arrangement to return to work if they have a disability. Requests for a flexible working arrangement must be in writing and clearly explain what kind of changes they are asking for, and the reason for these changes. Depending on the specific needs of the employee they can request to change their: Work hours (e.g. reduce work hours due to ill health) Patterns of work (e.g. split shifts or job sharing) Location of work (e.g. transfer to a closer branch or work from home) The employer should meet with the employee to discuss the request in further detail. Keep in mind you should not simply outright refuse a request for a flexible working arrangement. You should discuss the options and to try to agree on any changes to the employee’s working conditions. You should consider: The needs of the employee Consequences for the employee if changes in working arrangements aren’t made  Any reasonable business grounds for refusing the employee’s request. You must respond to a request for a flexible working arrangement in writing within 21 days which states whether you accept or refuse. As an employer you have a right to refuse a request for a flexible working arrangement only on reasonable business grounds. You should set out the reasons for refusal in writing and you should consider and offer any available alternative working arrangements when responding to the request. Dismissing an Employee with a Long-Term Illness or Injury While an inability to perform the inherent requirements of a role may generally provide a valid reason for a capability dismissal, dismissing an employee on the grounds of their capability is risky and a fair and reasonable process must be carried out. Employees are protected from dismissal on the grounds of illness, injury or disability through a number of overriding pieces of legislation, including the Fair Work Act 2009 (the Act), state and federal discrimination legislation, and state and territory workers compensation legislation. Under the Act, employers are prohibited from dismissing an employee due to a temporary absence from work due to a personal illness or injury. An absence is no longer temporary where: The total length of absence due to illness is more than three consecutive months The total length of absence is a total of more than three months over a 12-month period The employee is not on paid personal leave at the time of termination The above indicates that if an employee continues to receive paid personal leave they will be protected from termination. Whereas an employee whose absence is made up of a combination of paid personal leave and other entitlements (such as annual and unpaid leave) will however not be protected. You should consider reasonable adjustments that could be made to allow the employee to return to work before contemplating dismissal. If no reasonable adjustments are available, you may have reasonable grounds to commence the capability dismissal procedure and give the employee their notice of dismissal and final pay. The Act also provides that an employer must not take adverse action against an employee due to the person’s disability. Anti-discrimination and disability discrimination legislation also make it unlawful for employers to discriminate against an employee on the ground of the employee’s disability. This includes circumstances where an employee is terminated. In addition, state and territory workers compensation legislation can also prohibit employers from dismissing an employee within a specific period of time from when an employee incurs a workplace injury. Get HR support Need help with implementing sickness and absence policies? Peninsula provides tailored HR policies and processes for your business and employees. Call us on 1300756532 to learn how we can help you.

HR Policies

HR Policies
View all guides

Do you have any questions regarding HR Policies?

International Sites

United Kingdom

Republic of Ireland

Northern Ireland

Scotland

Canada

Australia

© 2025 Peninsula Employment Services Ltd. Registered Office: 8 Tangihua Street, Auckland CBD 1010

Peninsula Protect is a discretionary risk product issued by Peninsula Mutual Limited ACN 630 256 478 AFS Licence No. 544232. Peninsula Mutual Limited has appointed Peninsula Group NZ Limited NZBN 9429042175179 to distribute the discretionary risk product in New Zealand. To decide if this product is right for you, please read the Peninsula Protect Product Disclosure Statement (PDS) and Target Market Determination.