Skip to main content
Risk Management Bulletin

What is a Written Employee Code of Conduct Contract and Why Do You Need It?

By February 1, 2016No Comments

rr-feb-2016-2 (1)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 than a code of ethics, but it might include some of the same details. Your employees will be required to sign the contract before they can begin working for you. The contract then becomes a legal document and remains in the employee’s file.

What is the Purpose of the Code of Conduct?

Every employee is unique with different values and ways of doing business. Your code of conduct ensures everyone in your organization is on the same page, and it helps to unify everyone in supporting your company’s brand and reputation.

The code of conduct can also reduce your liability. If an employee signs the document and then breaks one of the rules, you can pursue disciplinary action because he or she agreed to behave in a certain way and then did not.

What Information is Included in a Code of Conduct?

Your code of conduct will include a variety of information. For example, you may wish to prohibit your employees from engaging in certain behaviors, including illegal activities, discrimination, harassment, drinking, smoking or foul language. The contract could also include:

  • 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

When writing your code of conduct, make sure it’s written in clear language to reduce confusion and ensure everyone can understand it. You may also include a blanket statement. It directs employees to see the employee handbook for additional rules. The handbook can then include further details about the information in the code of conduct.

Is the Code of Conduct a Legal Tool?

Signed employee codes of conduct are considered legal documents, so you can use them to justify disciplinary or legal actions against an employee who break the contract. However, be sure to hire an employment attorney or qualified human resources professional to review the code of conduct contract first. It cannot violate federal or state employment laws, and it must not contradict your code of ethics or employee handbook.

Your company’s code of conduct is an important document. If you don’t already have one, prepare one today.