What is Code of Conduct and Why is it Important?

Louise Petty

January 22, 2026

4 min read

In every type of workplace, it’s essential to be clear about how employees are expected to behave and interact with one another. Clear guidance helps people understand what is acceptable, what is not, and how issues will be handled if they arise. A code of conduct plays a key role in setting these expectations. In this article, we’ll outline what a code of conduct is, why it’s so important to have one at work, and provide you with some examples for how to go about creating an effective code of conduct in your workplace.

What Does Code of Conduct Mean?

A code of conduct is a formal document that sets out the standards of behaviour expected from employees in the workplace. It covers ethical behaviour, professional conduct and day-to-day business practices, helping everyone understand how to act at work and when representing their organisation.

In the workplace, a code of conduct is a crucial internal policy that applies to all employees, regardless of their role, seniority or contract type. It’s relevant across all sectors, from offices and retail to manufacturing and care environments.

While there is no single law in the UK that requires employers to have a standalone code of conduct, many of the behaviours it covers are linked to legal duties, such as employment law, health and safety legislation, data protection and equality law. A clear code of conduct helps demonstrate that your organisation takes these obligations seriously and provides staff with practical guidance on how to comply with them.

Why is a Code of Conduct Important?

A well-written code of conduct benefits both the company and its employees. It sets clear expectations from the outset and supports a positive, respectful and legally-compliant working environment.

For employers and managers, a code of conduct helps protect the business by reducing the risk of misconduct, disputes and legal claims. It also provides a consistent framework for managing behaviour and addressing issues fairly. For employees, it offers clarity, reassurance and a sense of fairness, as everyone is held to the same standards.

A code of conduct is important for:

Setting clear expectations for behaviour and professionalism at work.
Promoting a positive workplace culture built on respect and trust.
Supporting compliance with employment law and regulatory requirements.
Providing a clear process for handling complaints and disciplinary issues.
Helping new starters understand what is expected of them from day one.

Want to Learn More?

Our range of online Business Essentials Courses, including Data Protection Training and Sexual Harassment Training for Employees, covers a selection of key workplace conduct issues and helps to reduce risk across your organisation.

Code of Conduct Examples

A good code of conduct covers the areas of behaviour that matter most to your organisation and your people. The examples below outline some common code of conduct sections you may want to include, along with an explanation of what each typically addresses.

When creating a code of conduct, aim to briefly explain each area in plain language, so your code of conduct becomes more than just a list of rules. If done thoughtfully, it will become a practical guide that employees can refer to with confidence.

Common code of conduct topics include:

Attendance and timekeeping – this explains expectations around punctuality, absence reporting and unauthorised absenteeism. It should also outline how employees should notify their manager if they are unable to attend work or are running late.
Data protection and confidentiality – this explains the importance of protecting personal and business data and following data protection principles at all times. It should make clear that information must only be accessed and shared where there is a legitimate business need.
Disciplinary procedures – this sets out what may happen if the code of conduct is breached and links to your formal disciplinary process. It helps employees understand the potential consequences of misconduct and reassures them that issues will be handled fairly.
Dress code – this outlines what is considered appropriate work attire, taking into account health and safety, customer-facing roles and the need to be inclusive. It may also explain when different standards apply, such as for meetings, site visits or uniformed roles.
Employee rights and responsibilities – this reinforces that employees have rights at work alongside responsibilities to act fairly and lawfully. It helps balance expectations by making clear that respectful behaviour is a shared responsibility.
Harassment and bullying – this section explains that harassment, bullying and discrimination will not be tolerated and outlines how employees can report concerns. It should also reassure employees that complaints will be taken seriously and handled sensitively.
Leave and breaks – this clarifies how annual leave, rest breaks and other time off should be requested and managed. It can also explain any notice periods or approval processes that employees need to follow.
Professional behaviour – this sets expectations around respectful communication, teamwork, honesty and integrity when dealing with colleagues, customers and suppliers. It should encourage employees to act as positive representatives of their organisation at all times.
Use of company property and systems – this covers the responsible use of equipment, IT systems, email and internet access. It can also highlight that misuse may lead to disciplinary action and outline the importance of following cyber security procedures.

How to Create a Code of Conduct

Creating a code of conduct is usually the responsibility of senior management, business owners or HR professionals. In smaller organisations the employer usually creates the code of conduct, while in larger businesses it may involve HR teams, legal advisers and senior leaders.

There is no one-size-fits-all approach. An effective code of conduct should be tailored to your company’s size, sector, values and risks. It should also reflect how your business actually operates day-to-day.

A code of conduct is most effective when it is actively used, not just filed away in an employee handbook.

When creating your code of conduct, it helps to follow a clear process:

Carefully review legal and regulatory requirements and make sure your code reflects relevant employment law, health and safety duties and data protection obligations.
Align it with company values and use the code of conduct to reinforce your organisation’s values and the culture you want to promote.
Consult with managers and employees – gathering input can help ensure the code is practical, realistic and well understood.
Keep the language clear and accessible, avoid jargon and write in plain English so everyone can understand it.
Reference other key policies within the code of conduct, such as disciplinary, grievance and equality policies.
Communicate the code of conduct to everyone by sharing it with all employees and providing training where needed to bring it to life.
Review the code of conduct regularly and update it to reflect changes in law, business practices or organisational structure.

A well-designed code of conduct helps set clear standards, supports legal compliance and promotes a respectful working environment. By taking the time to create a code of conduct that reflects your organisation’s values and day-to-day realities, you give employees the clarity they need to behave confidently and responsibly at work.