Short answer: fewer than you think, but the ones you need, you really need. Australian law does not hand small business a checklist of mandatory HR policies. It does put duties on you, and a good policy is how you show you met them.
The ones that protect you
Workplace health and safety. You have a legal duty to provide a safe workplace, and that includes psychological safety. A policy plus a way for people to raise hazards is the minimum.
Anti-discrimination, bullying and sexual harassment. Employers now have a positive duty to prevent sexual harassment, not just respond to it. A clear policy, training and a complaint process are how you meet it.
Code of conduct. Sets the standard for behaviour and gives you something to point to when it slips. Without it, performance conversations become arguments about what is reasonable.
Leave. The National Employment Standards set the entitlements. A short policy on how leave is requested and approved saves you the same argument every December.
Drug and alcohol, and vehicle use if your people drive or work on site. In the trades these are not optional.
The ones you can leave for later
A 40-page handbook nobody reads. A social media policy copied from a bank. A dress code for a workshop. If it does not describe how your business actually works, it will not hold up when you need it.
What makes a policy worth having
It is short, it is in plain English, it matches what you actually do, every employee has read and signed it, and you apply it the same way to everyone. A policy you enforce for one person and ignore for another is worse than no policy.
All seven of the policies above are in the Advisory Hub Pro Library, written for Australian small business.
Want the templates and an HR consultant on tap? That is what Advisory Hub Pro is for. Or book a free 30-minute call.
This is general guidance for Australian employers, not advice on your specific situation. Awards, agreements and contracts can change the answer. When in doubt, ask.
Quick answer
What HR policies are required by law for a small business in Australia?
Very few are strictly mandated, but you have legal duties that a policy shows you’ve met: workplace health and safety (including psychological safety), preventing sexual harassment (a positive duty) and anti-discrimination. Add a code of conduct and a leave policy, and drug and alcohol and vehicle use if you’re in the trades.
