Any policy that is hampering your team from enjoying their work, just kill it.
To illustrate this further, for your HR team, employees need to come first. You cannot allow the HR team to ruin your employee’s day so they can save a couple of dollars (and cover it up under a policy).
Remember the effort (both in terms of time and money) you spent to get this right guy to join you.
Side Note: Great companies have always been built by happy employees (read policies).