When businesses get dragged before the Fair Work Commission, they often say, “But we have a policy for that.”
Here’s the problem: the Commission isn’t interested in what’s written — they’re interested in what’s lived.
Policy ≠ Practice
A beautifully drafted Code of Conduct is worthless if it sits untouched in a digital folder. Likewise, a performance management policy means little if managers bypass it every time they want to get rid of someone.
In workplace law, it’s your actions — not your documents — that determine liability.
The Fair Work Commission has repeatedly ruled against employers who failed to follow their own processes. And it’s not just unfair dismissal — this applies to bullying claims, sexual harassment complaints, and even flexible work request rejections.
Common Gaps Between Policy & Practice
- Managers aren’t trained on HR policies
They don’t know when or how to apply them, or they act based on “instinct” or emotion. - Policies are outdated or unaligned with legislation
A 2018 policy might directly contradict the 2023 Fair Work amendments. - No version control or acknowledgment records
If you can’t prove an employee received and understood a policy, it weakens your position. - Inconsistent application
If one employee was treated differently to another in a similar situation, your case unravels fast.
Real Case Example
An SME recently appeared before the Commission over a bullying claim. While their policy clearly outlined complaint handling procedures, the manager informally dismissed the issue and told the employee to “toughen up.”
The Commission ruled that the business failed to follow its own policy, and the informal handling contributed to the psychological risk.
The cost? A binding stop-bullying order, reputational damage, and legal fees.
Best Practice: Align Policy, Training & Behaviour
You can have the best legal documents in Australia, but if your people don’t follow them, you’ve still got a compliance problem.
Here’s what you need:
- Policy review every 12–18 months
Ensure alignment with latest legislation, especially Fair Work changes. - Mandatory manager training
Include induction for new leaders and annual refreshers. - Acknowledgement tracking
Use digital systems that show when employees received and agreed to policies. - Disciplinary consistency matrix
Map out responses to similar breaches so there’s fairness across cases. - Internal audits
Randomly check how policies are applied in real-time cases.
Why Policy Gaps Are a Red Flag for Auditors and Tribunals
Fair Work inspectors and external auditors look for evidence that HR policies are:
- Known (accessible and communicated)
- Understood (acknowledgment and training)
- Enforced (visible disciplinary or performance pathways)
- Reviewed (timestamped updates)
If any one of these is missing, it creates exposure — particularly in unfair dismissal or general protections claims.
When to Get Help
If you’re not confident your practices match your paperwork, it’s time to run an internal HR compliance check.
External services like Hack Your HR specialise in:
- Reviewing and rewriting HR policies to meet Fair Work obligations
- Training managers to apply policies consistently and legally
- Conducting mock audits to identify gaps
- Helping document your procedures for audit defence
They offer an outsider’s view — and that’s exactly how the Commission or Ombudsman will see you.
Final Word
Don’t wait until you’re facing a claim to discover your policies aren’t worth the paper they’re printed on.
A policy without enforcement is just PR and Fair Work doesn’t read marketing brochures.