Council policy has
exactly the same official standing as a central government policy. Which is to say, pretty much none. The only thing that matters is 'is it the law or not'. 'Government policy' in actual legal terms has no meaning at all. It's just the statement of intent from some minister or other. If you actually want to enforce the policy you make it a law, otherwise people are free to ignore it.
Not abiding by the policy of whoever you work for would most likely be a disciplinary matter but even then it wouldn't usually constitute something you could be sacked for unless there was a history of repeated breaches or it was somehow spectacularly damaging to your employer.
Jon