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In layman's term, you can say that LAW is a set of rules and regulation, which are clearly defined, that are objectively designed to maintain public order, uphold justice and fairness for ALL as dictated by the government.
Public Policy on the other hand does not server such an objective. They are just rules and regulations set out by the government / boards deemed to be suitable. (Just like Company Policy, every company is different and the policy might be biased to either the employee or employer)
I'm not a Law / Public policy person, but this is just my interpertation ;) You might wanna check with the dictionary