A law is a set of legally binding rules passed by parliament and sets out standards, procedures and principles which must be followed. If a law is not followed, those responsible for breaking them can be taken to court.
A policy outlines what a ministry hopes to achieve and the methods and principles it will use to achieve them. It states the goals of the ministry. A policy document is not a law but it will often identify a need for new laws in order to be able to achieve its goals.
So, policy sets out the goals and planned activities of government but it needs laws to implement the policy. Laws, on the other hand, when they are being drafted, will be guided by the current policy.
All laws and policies are made in terms of the Constitution and may not contradict the rights embedded in the Constitution.
Example
The Difference Between Law and Policy
A policy statement says: “All citizens should have access to 15 litres of water a day”.
The law says: “The national government has the power to regulate the amount of free basic water a municipality must supply.