Policy vs procedure: the difference, with real workplace examples
A policy says what your business does and why. A procedure says how your people do it, step by step. That’s policy vs procedure in two sentences, and almost every business with staff needs both.
The trouble starts when the two get blended into one document. A leave policy that also explains which button to press in the payroll app goes out of date the day you change software, and staff stop trusting it. If you’d rather not untangle that yourself, our policy and procedure writing services cover both, written for your business and checked against current Fair Work and WHS requirements for your state.
The short version: a policy is the rule. It sets the standard, gives the reason and rarely changes. A procedure is the method. It lists the steps, names who does each one and changes whenever your systems, forms or roles change. Owners or boards approve policies. Procedures are written for the people doing the work.
Not sure which of your current documents are which? The free Policy Readiness Checklist is a good place to start before you rewrite anything.
Policy vs procedure side by side
Here’s how the two compare.| Policy | Procedure | |
| Purpose | Sets the rule and the reason for it | Explains how to follow the rule |
| Answers | What and why | How, who and when |
| Written for | Everyone, plus assessors, insurers and regulators | The people doing the task |
| Language | Firm statements using must, must not and may | Numbered steps that start with an action |
| Length | Usually one to three pages | As long as the task needs |
| How often it changes | When the law, your contracts or your values change | Whenever a system, form or role changes |
| Who approves it | Owner, director or board | The manager responsible for the task |
| Example line | All planned leave must be approved before it is booked. | Lodge the request in the payroll app, then wait for approval. |
What is an example of a policy and procedure?
A leave policy and its leave request procedure are the classic pair. The policy states that staff receive their entitlements under the National Employment Standards and that planned leave needs approval before it’s booked. The procedure lists the steps: check the balance, lodge the request in the payroll system, get manager approval and update the roster. Three pairs you’ll find in most workplaces with staff:Leave
Policy: planned leave must be approved before it’s booked, and requests are considered fairly in the order they arrive.- Check your leave balance in the payroll app.
- Lodge the request with the notice the policy sets.
- Your manager approves or declines it within five business days.
- Once approved, the office manager updates the roster and tells the team.
Incident reporting
Policy: every incident, injury and near miss must be reported before the end of the shift, and notifiable incidents are reported to the WHS regulator.- Make the area safe and give first aid. Call 000 if there’s an immediate risk to life.
- Tell your supervisor straight away.
- Fill in the incident form the same day, with photos if it’s safe to take them.
- The manager checks whether the incident is notifiable. If it is, they report it to the state regulator immediately and leave the site as it is until an inspector arrives or says otherwise.
Complaints handling
Policy: every complaint from a client, family or member of the public is recorded, acknowledged and dealt with fairly, and nobody is disadvantaged for making one.- Log the complaint in the register on the day it comes in.
- Acknowledge it in writing within two business days.
- The manager investigates, speaks to the people involved and records the outcome.
- Reply to the person, close the entry and raise any repeat issues at the monthly team meeting.
Where processes, guidelines and SOPs fit
Policies and procedures are two layers in a wider set of documents. A process is the whole flow of work, start to finish. A procedure documents the steps for one stage of it. An SOP or work instruction goes deeper again, covering a single task done one exact way. Guidelines sit to the side as advice, not rules.
- Policy: the rule and the reason. All electrical work is isolated and tested before anyone touches it.
- Process: the whole flow, often across several roles. Quote, job booked, work done, invoice sent.
- Procedure: the steps for one stage, with who does what and when.
- SOP or work instruction: one task in exact order, such as locking out and tagging a switchboard before testing.
- Guideline: recommended practice. It uses “should”, and staff can apply judgement.
Manuals and SOPs for high-risk work are a writing job of their own, which is where our technical writing services come in.
Digging Deeper
The cost of mixing policy and procedure in one document
Policies need sign-off from the owner, a director or the board. Procedures shouldn’t. When the two are stuck together, every small change to a form drags the whole document back to the approver. A board that meets quarterly ends up approving a new leave form, or more often nobody updates it and staff work from a version that’s two systems old.
Assessors notice too. A WHS policy full of screenshots from an app the business dropped years ago says nobody is maintaining the system. Our guide on how to write workplace policies and procedures walks through how to set the two up as separate, linked documents.
Writing rules with must, must not and may
Clear policies use three words consistently:
- Must: it’s mandatory.
- Must not: it’s prohibited.
- May: it’s allowed, but not required.
Keep one instruction per sentence and save “should” for guidelines. “Staff should report hazards” leaves room to argue. “Staff must report hazards to their supervisor before the end of the shift” doesn’t. Downloaded templates rarely get this right, and it shows the first time an assessor or a lawyer reads them closely.
Frequently asked questions
What is the difference between a policy and a process?
A policy sets the rule, and a process is the flow of work the rule applies to. A refunds policy says when customers get their money back. The refunds process covers everything from the customer’s first email to the money landing in their account.
What’s the difference between an SOP and a policy and procedure?
An SOP is the most detailed of the three. The policy sets the rule, the procedure explains the steps for the people involved, and the SOP spells out one task in exact order, often with checks and warnings. Use one name for each layer and stick to it.
What’s another word for policy and procedure?
Common alternatives are policy manual, operations manual, policy framework and compliance documents. Businesses working to ISO-style systems often call them documented information, and many early learning services just say P&Ps. Whatever name you pick, use it everywhere, so staff and assessors know exactly which set of documents you mean.
Which comes first, the policy or the procedure?
The policy comes first. It sets the standard and the reason, and the procedure is written to meet it. Writing the steps first usually means the policy gets bent to fit whatever people already do, including the shortcuts. Agree the rule with the owner or board, then map the steps.
How often should policies and procedures be reviewed?
Most businesses review policies every one to two years and procedures whenever a system, role or law changes. Incidents, complaints and audit findings are also good reasons to check both straight away. Our article on how often to review workplace policies covers the triggers that call for an earlier check.
Get the rule right first, then write the steps underneath it. If you’d like a hand sorting out which of your documents are which, call (07) 3916 9896 or book a callback for a straight answer. No obligation, and you get a fixed quote before any writing starts.
Sources
Fair Work Act 2009 (Cth).
Safe Work Australia. (n.d.). Incident reporting. https://safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/incident-reporting
Eric Allgood is the Managing Director of SBAAS and brings over two decades of experience in corporate guidance, with a focus on governance and risk, crisis management, industrial relations, and sustainability.
He founded SBAAS in 2019 to extend his corporate strategies to small businesses, quickly becoming a vital support. His background in IR, governance and risk management, combined with his crisis management skills, has enabled businesses to navigate challenges effectively.
Eric’s commitment to sustainability shapes his approach to fostering inclusive and ethical practices within organisations. His strategic acumen and dedication to sustainable growth have positioned SBAAS as a leader in supporting small businesses through integrity and resilience.
Qualifications:
- Master of Business Law
- MBA (USA)
- Graduate Certificate of Business Administration
- Graduate Certificate of Training and Development
- Diploma of Psychology (University of Warwickshire)
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International Think Tank Member and Sponsor - Australian Institute of Company Directors – MAICD
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