An employee code of conduct contract tells employees what you expect from them. While it doesn't have to be elaborate or long, it is important for large and small businesses.
What is a Code of Conduct?
In your company's code of conduct, you'll list the expectations you have for employees. This document is different from a code of ethics, though it may include some of the same details. Employees are typically required to sign the contract before beginning work; once signed, it becomes part of the employee's personnel file.
What is the Purpose of the Code of Conduct?
Every employee is unique, with different values and ways of doing business. A code of conduct helps ensure everyone in your organization is on the same page and supports your company's brand and reputation.
The code can also reduce liability. If an employee signs the document and then breaks a rule, you have a documented basis for disciplinary action. Businesses that work with contractors may also review related insurance resources such as Contract Services and Facilities Insurance when evaluating risk.
What Information is Included in a Code of Conduct?
Your code of conduct will include a variety of expectations. For example, you may wish to prohibit employees from engaging in illegal activities, discrimination, harassment, drinking on the job, smoking in restricted areas, or using foul language.
- Confidentiality expectations
- Proper procedures for emergencies
- Attendance policy
- Dress code
- Proper way to interact with coworkers, customers and vendors
- Grievance policy for handling disagreements among coworkers
- Non-disclosure and confidentiality requirements
- Conflict of interests
Write the code in clear, plain language to reduce confusion and ensure everyone can understand it. You may also include a blanket statement directing employees to the employee handbook for additional rules and more detailed policies.
Is the Code of Conduct a Legal Tool?
Signed employee codes of conduct are considered legal documents and can be used to justify disciplinary or legal actions against an employee who breaches the agreement. However, have an employment attorney or qualified HR professional review the contract to ensure it does not violate federal or state employment laws or contradict your employee handbook.
Employers may also want to review related coverage such as Contract Property and Casualty Insurance to manage organizational risk.
Practical tips
Keep the code concise, specific, and easy to find in the employee handbook or personnel portal. Train supervisors on how to apply the rules consistently to avoid claims of uneven enforcement.
If you don't already have a code of conduct, prepare one and review it with legal or HR counsel, or talk to an agent about related risk-management options.
Frequently Asked Questions
How is a code of conduct different from a code of ethics?
A code of conduct focuses on specific behaviors and workplace rules, while a code of ethics describes broader values and principles guiding decision-making.
Does an employee have to sign the code of conduct?
Employers commonly require a signature; a signed document becomes part of the employee's record and supports enforcement actions if rules are broken.
Can a code of conduct limit employee rights?
No; a code of conduct cannot lawfully restrict employees' protected rights under federal or state law, so legal review is recommended.
What should I do when an employee violates the code?
Follow the disciplinary procedures outlined in the code and employee handbook, documenting actions and applying policies consistently.