Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
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Running a business in Australia comes with plenty of moving parts. Somewhere between registering your business, hiring staff and serving customers, you’ll come across the term “code of practice”. It’s common to hear this from regulators, industry bodies, or in guidance about safety and compliance.
But what exactly is a code of practice in Australia? Is it the same as a law, and how does it apply to your business day to day?
In this guide, we’ll define “code of practice” in plain English, explain how approved codes sit within Australia’s legal framework, and walk you through practical steps to identify and implement the right ones for your workplace. By the end, you’ll know why codes matter, where they come from, and how to use them to manage risk and protect your business.
What Is A Code Of Practice In Australia?
At its core, a code of practice is a written guide that explains how to meet your legal duties in a specific area of business. It turns broad legal obligations into practical steps, examples and methods you can actually apply on the ground.
Plain-English Definition
A code of practice is a non‑binding guideline that shows businesses and workers how to comply with particular laws. Think of it as a “how to” manual for achieving the standards the law expects, often including checklists, procedures and examples.
Importantly, a code of practice is not the law itself. However, regulators and courts commonly refer to codes when deciding whether a business took reasonably practicable steps to meet its legal duties. If you follow an applicable code, that can help show you approached compliance in a recognised way. If you depart from a code, you should be able to demonstrate that your alternative method provides an equal or better level of safety or compliance.
Common Areas Covered By Codes
- Work health and safety (WHS) topics such as risk management, manual handling, hazardous chemicals, psychosocial hazards and emergency plans.
- Industry or sector practices set by regulators or industry bodies (for example, franchising has its own mandatory code of conduct made under federal law).
- Technical or operational practices that are tied to specific legislation through references to standards or approved methods.
How Do Codes Of Practice Interact With Laws And Standards?
Australian business obligations come from a few places that work together. It helps to understand the role each one plays:
- Legislation (Acts and Regulations): These are your binding legal duties, such as WHS laws, fair trading laws and the Australian Consumer Law (ACL). Breaches can lead to penalties.
- Codes of Practice: These explain, in practical terms, how to meet those legal duties. They aren’t enforceable as law in their own right, but they are persuasive guidance and are commonly used as evidence of what’s reasonably practicable.
- Standards: Technical benchmarks (often from Standards Australia) that codes and regulations may refer to. Standards can be voluntary on their own, but become mandatory if referenced by law or made a condition of a licence.
- Your Internal Policies: The way you operationalise all of the above day to day, such as a WHS procedure, a quality manual, or a customer service policy.
In practice, the law sets the “what” (the obligations), while a code of practice and any referenced standards help you with the “how”.
Approved Codes Of Practice: Model Vs State And Territory
In Australia, many codes of practice relate to work health and safety. It’s useful to know how they’re made and adopted, because it affects which version applies to you.
Model WHS Laws And Codes
Safe Work Australia develops model WHS laws and model codes of practice. These are national templates designed to promote consistency.
However, model materials don’t automatically apply. Each state and territory must adopt the model laws (and any codes) through its own legislation and regulatory processes. Some jurisdictions approve the model codes as they are; others make jurisdiction‑specific changes or approve different guidance.
What “Approved” Means
An “approved code of practice” is one that a state or territory regulator has formally approved under its WHS legislation (or another relevant Act). Approved codes have particular legal significance:
- They can be used in court or by inspectors as evidence about what is known regarding a hazard, risk or control, and about what is reasonably practicable in the circumstances.
- You don’t have to follow an approved code to the letter. You can use another method, provided it achieves an equivalent or better level of health and safety or compliance.
- Following an approved code doesn’t grant automatic immunity if something goes wrong. It’s a strong indicator of good practice, but the legal question remains whether you met your underlying duty in the circumstances.
Outside WHS, some sectors have mandatory codes made under legislation (for example, the Franchising Code of Conduct under the Competition and Consumer Act). In those cases, the code itself has legal force and must be complied with.
Why Codes Of Practice Matter For Your Business
Whether you’re a startup or a growing enterprise, codes of practice are worth your attention for a few key reasons.
- Turn legal duties into action: Codes translate legal requirements into concrete processes, checklists and controls your team can follow.
- Evidence of due diligence: If there’s an incident or complaint, being able to show you adopted recognised guidance helps demonstrate you took reasonable steps.
- Consistency across your operations: Codes help you embed a consistent “way we do things here” across sites, shifts and new starters.
- Risk reduction and culture: Clear, practical steps improve safety and fairness, support staff training, and build trust with customers.
- Regulatory expectations: Inspectors and industry bodies often assess your systems against the relevant approved codes and referenced standards.
A practical tip: treat codes as the baseline. If your risk profile or industry context demands higher controls, document why and how you’ve gone beyond the minimum.
How To Identify And Implement The Right Codes Of Practice
There isn’t a single master list for every business. The applicable codes depend on what you do, where you operate, and which laws govern your activities. Use this step‑by‑step approach to stay on top of your obligations.
1) Map Your Activities And Risk Areas
List what your business actually does: the tasks, environments and hazards (e.g. manual handling, hazardous substances, customer‑facing sales, remote work). This helps you search by topic rather than just by industry label.
2) Identify The Relevant Jurisdiction
Confirm where each part of your business operates. WHS codes are approved at the state or territory level, so the version in New South Wales may differ from Queensland or Western Australia.
3) Locate Approved Codes And Guidance
Visit your state or territory WHS regulator’s website for the list of approved codes. Check whether any industry‑specific mandatory codes apply to your model (such as franchising). For consumer dealings, review your obligations under the Australian Consumer Law, supported by your customer contracts and policies. If you need tailored help interpreting which codes apply, a quick legal health check can be a smart starting point.
4) Compare Code Guidance With Your Current Practices
Gap‑analyse your existing procedures against the code’s recommended controls, training, supervision and record‑keeping. Note where you meet, exceed or fall short of the guidance.
5) Update Policies, Procedures And Contracts
Embed the practical steps from the codes into your internal documents. This might include a central WHS procedure, a Workplace Policy, or customer‑facing terms that align with consumer guarantees. If you sell goods or services, ensure your Customer Contract and any warranty information match your obligations under the ACL.
6) Train Your Team And Keep Records
Run onboarding and refresher training that highlight “the way we do things” under the relevant codes. A practical, accessible staff handbook helps people follow the process. Keep records of training, risk assessments, inspections and corrective actions.
7) Review Regularly And Adjust
Set a review cycle for your policies and risk controls. Revisit codes when you change processes, add new equipment, or move into a new jurisdiction. Document any alternative methods you adopt and why they achieve an equal or better outcome.
What Documents Help You Put Codes Into Practice?
Codes of practice translate neatly into policies, procedures and contracts. The right documents make it easier for your team to do the right thing consistently.
- Workplace Policies And Procedures: Your day‑to‑day “how we work” documents that reflect code requirements for training, supervision, hazard management and incident response. A consolidated Workplace Policy helps align expectations across the business.
- Employment Agreements: Clear contracts set roles, responsibilities and any compliance expectations tied to safety or conduct. If you employ staff, use an Employment Contract that fits your business and award coverage.
- Staff Handbook: A practical guide that brings policies and code‑aligned procedures to life for your team, including reporting lines and day‑to‑day rules. See the Staff Handbook Package.
- Customer-Facing Terms: If you sell online or provide services, make sure your website or platform displays clear terms that align with the ACL. Consider Website Terms and Conditions and robust Customer Contract terms for refunds, warranties and limitations of liability that comply with consumer guarantees.
- Warranties And ACL Compliance: Where relevant, align written warranties with ACL requirements (for instance, a warranties against defects notice). If you’re unsure, getting tailored advice through an ACL consultation can clarify what to include.
- Privacy And Data Handling: If you collect personal information, ensure your Privacy Policy reflects your data practices and any consent, retention and security measures your sector expects.
Not every business needs every document, but most will need several. The key is to tailor each one so it genuinely reflects the codes and controls that apply to your operations, rather than relying on generic templates.
Frequently Asked Questions About Codes Of Practice
Is Following A Code Of Practice Mandatory?
It depends. In WHS, approved codes are not laws in themselves, but they’re powerful guidance. You can follow a different approach if it achieves an equivalent or better outcome. Some sectors, however, have mandatory codes (for example, the Franchising Code of Conduct) that do carry legal force and must be complied with.
If I Follow An Approved Code, Am I Automatically Compliant?
Following an approved code is strong evidence you’ve taken reasonable steps, but it isn’t an automatic defence in every situation. The ultimate question is whether you met your legal duty in your specific circumstances. Keep risk assessments and training records to support your position.
Do Codes Of Practice Replace Standards?
No. Codes and standards often work together. A code may reference a technical standard as one way to meet the expected level of safety or quality. If a law or licence requires adherence to a particular standard, you must meet it even if the code offers alternatives.
What Happens If I Don’t Follow A Code?
If something goes wrong, not following an applicable code can make it harder to show that you took reasonably practicable steps. Inspectors may also rely on codes when issuing notices. If you adopt an alternative method, document how it achieves an equal or better outcome and train your team accordingly.
Key Takeaways
- A code of practice is practical guidance that explains how to meet legal duties; it is not generally a law, but it’s influential with regulators and courts.
- Approved WHS codes are adopted by states and territories. You may use other methods if they achieve an equal or better level of safety, but document your reasoning.
- Treat codes as a baseline for consistent, risk‑based processes across your business, supported by training and records.
- Align your internal documents with the codes that apply to you, including a Workplace Policy, fit‑for‑purpose Employment Contracts, a staff handbook, clear Customer Contracts and a compliant Privacy Policy.
- Build a review cycle so your processes and documents keep pace with updated codes, new risks and any changes to your operations or jurisdictions.
- If you’re unsure which codes apply or how to implement them, a tailored legal health check can quickly map your obligations and next steps.
If you would like a consultation on implementing codes of practice in your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
