Institute of Certified NZ Bookkeepers

Policies and procedures

The benefit of policies and procedures

Policies and procedures are an important tool in managing your employees. They work alongside employment agreements to make sure both parties are clear on the expectations and obligations of the employment relationship.

They can:

  • reduce the risk that anyone misunderstands the conditions of employment
  • ensure fairness
  • give you a good reference point to confirm that you’re complying with all relevant legislation
  • help you get consistency across multiple locations.

Thinking about how you want your business to run, documenting it, and sharing it with your employees, will save you time and money in the long run.

What are policies and procedures?

A policy is a set of rules or principles to be followed in a particular area, eg a leave policy might explain your expectations for staff requesting leave, like applying at least a week in advance.

A procedure is the way something is done, e.g. the forms that need to be filled out for requesting leave.

Policies and procedures support employment agreements by providing detail on matters that might not be negotiated as part of an employment agreement.


The following templates have been created for member use:

To create your own policy from scratch, we have provided a blank template with notes to guide you. 

  • Updated: 23 August 2019