In today’s business world HR policies are the key to harmony in the workplace and compliance with laws. They are a guiding framework that defines the expectations, rights and responsibilities of employees and employers and creates a transparent and efficient work environment. Clear rules and processes in HR policies not only prevent legal issues but also boost employee trust and organisational consistency.
India’s dynamic labour laws add another layer of complexity to this. With frequent changes and state-specific laws businesses face challenges in staying compliant. From employee rights to workplace safety these laws cover a wide range of areas so it is essential for organisations to keep their HR policies in sync with changing legal requirements. Non-compliance attracts penalties and also damages the company’s reputation, so policy planning is critical.
In this blog, we will cover how to draft, implement, and maintain HR policies in India. Whether you are a startup or an established organisation, understanding HR compliance and policy creation will help you build a policy framework that is compliant and positive.
Importance of HR Policies in India
HR policies are the foundation of good people management and are key to the success of the organization. In the Indian business environment, these are more important due to the country’s complex and vast labor laws.
Here are the reasons why HR policies are a must in every organization in India:
1. Legal Compliance and Avoiding Fines
India has a plethora of laws to protect employee rights and ensure fairness at the workplace. HR policies aligned with these laws and help businesses:
- Avoid penalties.
- Stay current with central and state laws.
- Create a legally compliant workplace and reduce the risk of legal issues.
For example, having mandatory policies like sexual harassment prevention under the POSH Act or leave policies as per Shops and Establishments Act shows compliance to standards.
2. Build a Positive Work Culture and Trust
HR policies provide a clear order of rules and expectations which:
- Gives employees confidence about their rights and workplace safety.
- Encourage inclusivity, fairness and respect within the organization.
- Reduce confusion and conflicts and create a peaceful work environment.
When employees feel policies are transparent and fair, their morale and productivity increase and contribute to business success.
3. Standardization of Processes and Reducing HR Confusion
By standardizing HR practices organizations can:
- Simplify processes like recruitment, performance management and grievance handling.
- Ensure consistency in decision-making and reduce favoritism or bias.
- Remove ambiguity so that employees can understand procedures and expectations clearly.
This standardization also helps new joiners to adapt fast, overall employee satisfaction and retention.
In short, HR policies in India ensure legal compliance and lays the foundation for positive work culture and operational efficiency, it’s a must for any organization.
List of 20 Mandatory HR Policies in India
Policies for Employment and Workplace Conduct
1. Code of Conduct
The code of conduct is an HR policy that defines the professional behaviour and ethics expected from employees.
It lays down the dos and don’ts within the organization to maintain a respectful and productive work environment.
A well-defined Code of Conduct ensures consistency in employee actions and provides guidelines for handling issues like misconduct, conflict or unethical behavior.
Code of Conduct Policy Template
1. Purpose To set out the expected behaviour and ethics for all employees of [Company Name].
2. Scope: All employees including full-time, part-time, contract workers and interns.
3. Core Values
- Integrity: Be honest and fair.
- Respect: Treat everyone with respect.
- Accountability: Take ownership of your actions and decisions.
- Compliance: Follow the law, regulations and policies.
- Professionalism: Be a good ambassador for the company.
4. Employee Responsibilities
- Compliance: Follow all company rules and policies.
- Confidentiality: Protect company and client information.
- Conflict of Interest: No personal conflicts of interest.
5. Workplace
- Anti-Harassment: No harassment or discrimination.
- Fairness: Inclusive and fair environment.
- Zero Tolerance for Violence: No threats or acts of violence.
6. Ethical Behaviour
- Bribery & Corruption: No unethical behaviour.
- Accurate Records: Keep accurate records.
7. Technology
- Email & Internet: Use for work purposes only.
- Cybersecurity: Follow data protection rules and guidelines.
8. Reporting Breaches
- Reporting Misconduct: Report policy breaches to HR or management.
- Whistleblower Protection: No reprisal for misconduct.
9. Consequences: Breaches may result in disciplinary action up to and including termination.
10. Acceptance All employees must acknowledge receipt of this policy.
Employee Acknowledgement I, [Employee Name], have read, understood and will comply with this Code of Conduct.
Employee Signature: ________________________ Date: ____________________
2. Equal Opportunity Policy
An Equal Opportunity Policy ensures that everyone is treated equally in the workplace, regardless of color, gender, religion, caste, age or disability.
This policy aligned with Indian laws such as the Equal Remuneration Act, 1976 and the Rights of Persons with Disabilities Act, 2016 which prohibits discrimination and promotes workplace diversity.
It means we only hire, promote and give benefits based on merit and qualifications.
Equal Opportunity Policy Template
1. Purpose To treat all employees and applicants fairly, and promote diversity, equity and inclusion at [Company Name].
2. Scope All employees, job applicants, interns and contractors. Recruitment, hiring, training, promotion and compensation.
3. Policy
Decisions are based on merit.
No discrimination or harassment.
Equal access to growth, training and career opportunities.
4. Principles
Fair Recruitment: Hiring based on skills and experience.
- Equal Pay: Same pay for all roles.
- Zero Tolerance: No discrimination on protected grounds.
5. Reporting & Complaints Report discrimination or harassment to HR. Reports will be confidential and responded to promptly.
6. Consequences Violations may result in warnings, suspension or termination depending on the severity.
7. Acknowledgement All employees must acknowledge and comply with this policy.
Employee Acknowledgement I, [Employee Name], have read, understood and agree to the Equal Opportunity Policy.
Employee Signature: ________________________ Date: _____________________
3. Anti-Bullying Policy
Anti-Bullying Policy encourage a respectful and harassment-free workplace by prohibiting all forms of bullying whether verbal, physical or emotional.
It outlines unacceptable behaviour, and reporting procedures and ensures complaints are handled confidentially and fairly. By creating a safe and supportive environment this policy promotes employee well-being, trust and collaboration.
This Policy not only the organisation from legal liabilities but also helps maintain reputational and credibility.
Anti-Bullying Policy Template
1. Purpose To create a safe and respectful environment where bullying is not allowed, for the well-being and dignity of all employees at [Company Name].
2. Scope This policy applies to all employees, contractors, interns, and visitors at [Company Name]. It covers all work-related activities, whether on-site, remote, or at company-sponsored events.
3. Definition of Bullying Bullying is repeated, unreasonable behaviour that creates a risk to health, safety or well-being. This can include verbal, physical or psychological abuse such as:
- Verbal abuse, insults or name calling.
- Intimidation, threats or humiliation.
- Deliberate exclusion from work-related activities.
- Cyberbullying via email, messaging or social platforms.
4. Employee Responsibilities
- Treat colleagues with respect and professionalism.
- Don’t bully.
- Report bullying incidents.
5. Employer Responsibilities
- Promote a culture of respect and zero tolerance to bullying.
- Provide anti-bullying training.
- Investigate and address bullying complaints fairly and confidentially.
6. Reporting & Complaint Procedure Employees who experience or witness bullying should report it to HR or a designated officer. Complaints will be handled confidentially and no retaliation.
7. Investigation Process
- Step 1: Receive and acknowledge the complaint.
- Step 2: Conduct a fair investigation by gathering facts and evidence.
- Step 3: Take action, including mediation, warnings or disciplinary measures.
8. Disciplinary Action Employees found to be bullying may face disciplinary action including warnings, suspension or termination depending on the behaviour.
9. Review & Updates This policy will be reviewed periodically to ensure it’s working and compliant with labour laws. Any changes will be communicated to employees.
10. Acceptance All employees must accept this Anti-Bullying Policy.
Employee Acceptance I, [Employee Name], have read, understood and agree to the Anti-Bullying Policy.
Employee Signature: ________________________ Date: _____________________
4. Sexual Harassment Policy (POSH Policy)
A Sexual Harassment Policy is important for any organization in India, as per the Prevention of Sexual Harassment (POSH) Act, 2013.
Also, this law requires employers to have a mechanism to address complaints of sexual harassment and ensure a safe and respectful workplace for all employees.
The policy should define sexual harassment as physical and non-physical like demeaning remarks, gestures, sexual jokes, and comments. It can also include posting, sending, or sharing negative, harmful, false, or mean content.
The Policy includes the process of filing complaints, the process of investigation and actions to be taken if allegations are proven.
Sexual Harassment Policy Template
1. Purpose
At [Company Name], we maintain a safe, respectful, and inclusive work environment where sexual harassment is strictly prohibited.
2. Scope
This policy applies to all employees, contractors, interns, and visitors at [Company Name]. It cover the office, remote work, business trips, and events.
3. Definition of Sexual Harassment
Sexual harassment includes unwanted conduct of a sexual nature that may create an aggressive, intimidating, or offensive work environment.
Examples:
- Requests for sexual favours.
- Verbal harassment, such as inappropriate comments or jokes.
- Non-verbal harassment, such as gestures or displaying inappropriate images or videos.
- Physical conduct, such as unwanted touching, blocking, or physical intimidation.
4. Employer Responsibilities
- Create a safe and inclusive environment for all employees.
- Provide training on preventing sexual harassment.
- Ensure a fair, confidential, and prompt complaint process.
5. Reporting & Complaint Procedure
Employees are encouraged to report harassment to HR, a supervisor, or a designated complaint officer. Reports will be addressed promptly and confidentially.
6. Investigation Process
- Step 1: Acknowledge and document the complaint.
- Step 2: Conduct a fair and unbiased investigation, gathering relevant evidence and statements.
- Step 3: Take corrective action, including mediation, warnings, or disciplinary measures.
7. Disciplinary Action
Employees found guilty of sexual harassment may face consequences such as warnings, suspension, or termination, depending on the severity of the misconduct.
8. Protection Against Retaliation
Employees who file complaints or participate in investigations are protected from retaliation. Retaliation will be met with disciplinary action.
9. Review & Updates
This policy will be reviewed periodically to ensure its effectiveness and compliance with legal requirements.
10. Acknowledgment
All employees must acknowledge receipt and understanding of this Sexual Harassment Policy.
Employee Acknowledgment
I, [Employee Name], have read, understood, and agree to comply with the Sexual Harassment Policy.
Employee Signature: ________________________________Date: ____________________
5. Employee Handbook
The Employee Handbook is a comprehensive document that outlines all company policies, procedures and expectations. The handbook covers important areas like code of conduct, leave policies, grievance redressal and employee benefits.
By communicating rules and processes clearly, the handbook promotes transparency, uniformity and reduces ambiguity. It also serves as a reference document for employees to understand their rights and responsibilities and makes the workplace more organized and efficient.
Employee Handbook Template
Welcome to [Company Name]! This is our company handbook. It outlines our mission, values and key policies to make our workplace safe, inclusive and productive.
2. Company
Mission & Vision: [Insert here]
Core Values: [Insert here]
3. Employment Policies
- Equal Opportunity: Everyone is treated equally.
- Anti-Harassment: No bullying, harassment or discrimination.
- Code of Conduct: Be professional, integrity and respect at work.
4. Workplace Policies
- Attendance: Work hours are [insert here] and notify HR if you can’t make it.
- Leave: Annual, sick and special leave guidelines.
- Remote Work: Rules and expectations.
- Health & Safety: How to keep our workplace safe and healthy.
5. Compensation & Benefits
- Payroll: Pay schedule and salary.
- Employee Benefits: Health insurance, bonuses and more.
- Rewards & Recognition: How we reward high performance.
6. Performance & Development
- Performance Reviews: Regular feedback and goals.
- Training: Opportunities to grow and learn.
7. Employee
- Code of Conduct: What to do and not to do at work.
- Disciplinary Action: What happens if you break the rules?
8. Technology
Equipment Use: Company devices and tools guidelines.
9. Separation
Resignation & Exit: Resignation and exit interview process.
10. Acceptance All employees must accept this handbook.
Employee Acceptance I, [Employee Name], accept this Employee Handbook.
Employee Signature: ______________
Date: _____________
6. Non-discrimination Policy
The Non-discrimination Policy ensures all employees are treated fairly, regardless of their race, gender, age, religion, caste, disability or sexual orientation.
This policy prohibits biased behavior in recruitment, promotions, compensation, and workplace interactions, with laws such as the Equal Remuneration Act, 1976, and the Rights of Persons with Disabilities Act, 2016.
By creating an inclusive environment, the policy increases employee trust and satisfaction and makes the workforce more cohesive and collaborative.
Non-discrimination Policy Template
1. Purpose [Company Name] is an equal opportunities employer and will not discriminate against anyone.
2. Scope This policy applies to all employees, applicants and stakeholders across all areas of employment.
3. Prohibited Discrimination on the grounds of race, gender, age, religion, disability, sexual orientation or any other protected characteristic is not allowed.
4. Reporting and Complaints Employees should report any discrimination to HR or their manager. Reports will be confidential and no retaliation will be tolerated.
5. Investigation and Resolution Complaints will be investigated and action taken as necessary.
6. Accountability Employees, managers and HR will uphold this policy.
Employee Acknowledgment I, [Employee Name], have read and agreed to [Company Name]’s Discrimination Policy.
Employee Signature: ______________
Date: __________
Policy For Employment Agreements and Terms
7. Employee Contract
An Employee Contract is a legally binding document that defines the relationship between the employer and the employee. It covers the terms and conditions of employment including job description, salary, benefits, working hours, probation period and termination clauses.
Governed by Indian laws such as Indian Contract Act, 1872 and various labor laws, a contract ensures clarity and prevents disputes by documenting mutual understanding. A well drafted contract protects both parties’ interests and is a reference point for resolving disputes during the employment period.
Employee Contract Agreement Format
1. Position and Job Responsibility:
The employee, [Employee Name], is employed as [Job Title] and will be performing duties as mentioned by [Company Name].
2. Salary:
The employee will receive [Salary Amount] [Daily/weekly/monthly] and all benefits are covered as per company policy.
3. Work Hours:
The standard workweek is [X] hours [Start Time] to [End Time], [Days of the Week].
4. Leave and Holidays:
The employee is entitled to [X] days of leave annually and holidays as per the company calendar.
5. Confidentiality
Employees agree to keep all company information confidential during and after employment.
6. Termination
Contract can be terminated by either party with [X] days written notice or as per policy.
Acknowledgement
Employee acknowledges and agrees to the terms of this contract.
Employee Name: ________________________________
Signature: ______________Date: __________
8. Employee Non-Disclosure Agreement (NDA)
An Employee NDA is a legal contract that protects the confidential information shared with the employee during their employment.
It restricts the employee from sharing sensitive business information like trade secrets, proprietary processes, client information, financial information, etc… with unauthorized persons. Governed by Indian Contract Act, 1872 an NDA protects the organization’s intellectual property and competitive advantage.
Clear definitions of confidential information, duration of confidentiality and penalties for breach make the agreement effective. NDA are essential to build trust and protect the company’s interests.
Employee Non-Disclosure Agreement Sample
1. Purpose To keep confidential information shared with me during my time at [Company Name].
2. Confidential Information Includes but not limited to business plans, financial data, customer info, trade secrets and intellectual property.
3. Employee Agreements I agree to:
- Do not share confidential information with anyone.
- Use confidential information only for work purposes.
- Return or destroy all confidential materials when I leave.
4. Term This NDA is in effect during and after my employment for [X] years.
5. Violation Any breach will be enforced by law and financially.
6. Signature By signing below I agree to this NDA.
Name: _______________
Signature: ___________________
Date: ___________________
9. Termination and Resignation
The Termination and Resignation Policy outlines the process of ending the employer-employee relationship.
Resignation is when an employee decides to leave the organization on their own, often they have to serve a notice period as per their employment contract.
Termination is initiated by the employer for reasons like misconduct, underperformance or Illegal activity, etc.
Indian labor law like the Industrial Disputes Act, of 1947 governs the termination process, ensuring fair treatment, proper notice or compensation in lieu of notice. Well documented policy reduces legal risk and ensures a smooth transition for both parties.
Leave and Work Flexibility
10. Leave Policy
A Leave policy is a document of guidelines, rules and procedures that outline the type of leave available for employees in an organization.
Types of Leave
The Leave Policy will cover the following types of leave as per Indian labour laws:
- CL (Casual Leave): Short leave for personal reasons, usually 7 to 12 days a year depending on the organization.
- SL (Sick Leave): Leave for medical reasons, usually 5 to 10 days a year.
- EL (Earned Leave) or PL (Paid Leave): Long leave accrued based on the number of days worked, usually 1 day of earned leave for every 20 days worked as per the Factories Act, 1948.
Some organisations also have other types of leave:
- Maternity Leave: As per the Maternity Benefit Act, 1961, eligible female employees are entitled to 26 weeks of paid leave.
- Paternity Leave: Not mandatory by law, but many organisations offer a few days of paternity leave to new fathers.
- Public Holidays: Organizations must adhere to the holiday list provided under the respective state’s Shops and Establishments Act.
Leave Policy Template
1. Purpose
To establish guidelines for employee leave entitlements and procedures at [Company Name].
2. Types of Leave
- Casual Leave (CL): [X] days per year for personal needs or emergencies.
- Sick Leave (SL): [X] days per year for health-related absences.
- Earned/Annual Leave (EL): [X] As per Day/Year or labor laws or company policy.
- Maternity/Paternity Leave: As per Indian labor laws.
- Compensatory Off: For working on weekends/holidays, as approved by the manager.
3. Leave Application Process
- Submit a leave request via “HR Software/email” at least [X] days in advance.
- The manager should be notified immediately if an emergency arises.
4. Leave Approval
- Leave requests are subject to approval by the respective reporting manager and HR.
- Leave may be denied if business needs are affected.
5. Leave Carry-Forward and Encashment
Specify if unused leave can be carried forward or encashed as per company policy.
6. Unpaid Leave
Unpaid leave may be granted at the discretion of the manager and HR.
7. Responsibilities
- Employees must apply for leave in advance.
- Managers must review and respond to leave requests promptly.
8. Acknowledgment
By signing, the employee acknowledges the terms of the Leave Policy.
11. Work From Home Policy
This Work From Home Policy outlines the expectations, procedures and support for employees working remotely.
It includes communication, work hours, performance monitoring and data security. This policy ensures employees are productive while having a better work-life balance.
Also, it clarifies expenses, technology support and eligibility criteria. A well-drafted Work From Home Policy reflects the company’s adaptability to modern work trends and employee needs.
Work From Home Policy Template
1. Purpose To ensure productivity, accountability and data security when working remotely.
2. Eligibility Available for approved roles by managers and HR.
3. Work Hours Work normal hours from [Start Time] to [End Time].
4. Communication Be available via email, phone or internal tools during work hours.
5. Equipment Company may provide equipment. You must have a secure internet connection.
6. Data Security Follow company data protection policies and use approved tools.
8. Cancellation of WFH Company can change or cancel WFH at any time.
Signature: ______________
Date: _____________
12. Sabbatical Policy
Sabbatical Policy allows employees to take extended leave for personal or professional development such as pursuing further education, travel, volunteering or addressing personal challenges.
It outlines eligibility criteria, the application process and terms of leave such as whether it’s paid or unpaid. By offering sabbaticals organisations demonstrate their commitment to employee development and well-being which leads to increased loyalty and long-term retention.
Sabbatical Policy Template
1. Purpose: To take a break from work to do something personal, professional or educational.
2. Eligibility: You must have at least [X] years of service to apply for a sabbatical.
3. Duration Sabbaticals can be anywhere from [X] months to [X] months, subject to manager and HR approval.
4. Application Process
- Notify HR at least [X] days in advance.
- Reasons, duration and return to work plan.
5. Approval
- Manager and HR will review the request.
- Business needs and workforce availability will determine approval.
6. Compensation
Paid, unpaid or partially paid, as per company policy.
7. Continuity of Benefits
Health insurance may continue or be suspended, as per company policy.
8. Return to Work
- Give [X] days’ notice before returning.
- Will be reinstated to previous role or equivalent.
Employee Name: __________________
Employee Signature: _________________
Date: ____________________
Policies for Rewards, Recognition, and Performance
13. Rewards and Recognition Policy
This Rewards and Recognition Policy is to acknowledge employees for their great work, performance and dedication.
It sets up structured programs such as bonuses, awards or public recognition to motivate employees and a culture of excellence.
This policy ensures transparency in the recognition process, a positive work environment and employee morale and retention. A well implemented program links individual achievements to company goals, overall productivity.
Rewards and Recognition Policy
1. Purpose To reward employees for their contributions, achievements and performance to create a culture of appreciation and motivation.
2. All full and part-time employees are eligible.
3. Types of Rewards
- Performance Rewards: For achieving targets or goals.
- Recognition Awards: For displaying company values, teamwork or outstanding contributions.
- Service Awards: For service milestones (e.g. 5, 10, 15 years).
4. Nomination
- Nominations can be made by managers, peers or HR.
- Fill in a nomination form with the employee’s contribution and justification.
5. Approval Process
- Nominations are reviewed by a committee of managers and HR.
- Final approval by senior management.
6. Reward
- Cash incentives, gift cards or bonuses.
- Public recognition through newsletters, meetings or social media.
- Non-monetary perks like extra leave, training opportunities or certifications.
7. Announcement and Presentation
- Recognition is presented at team meetings, town halls or other company events.
- May also be featured in company newsletters or announcements.
8. Review and Update
This policy will be reviewed every 12 months to ensure it’s in line with business objectives and employee requirements.
Acknowledgment
Employee Name: ________________________________
Date: _____________________
14. Attendance and Punctuality Guidelines
The Attendance and Punctuality Guidelines are important to maintain organisational discipline, productivity and workflow.
These guidelines set out the expectations for regular attendance and time in and out, so employees understand the impact of their attendance on team efficiency and project timelines.
They provide a framework for recording attendance, reporting absences and late arrivals and define acceptable levels of absenteeism and leave.
Attendance and Punctuality Sample
1. Establish clear attendance and punctuality guidelines to ensure operations run smoothly and maintain accountability.
2. All full-time, part time and contract employees are eligible
3. Attendance
- Be on time and present for your entire shift.
- Any planned absences must be notified to your manager.
4. Notifying Absence
- Notify your manager at least [X] hours before your shift if unforeseen absence.
- Use the designated method (e.g. phone, HR portal) to report absence.
5. Lateness
- If you’re late by more than [X] minutes notify your manager.
- Repeated lateness will result in disciplinary action.
6. Leave
- All leave must be requested through the HR system at least [X] days in advance.
- Emergency leave will be considered on a case by case basis.
7. Attendance Tracking
- The company may use time-tracking software or manual registers to monitor attendance.
- Employees are responsible for logging their hours worked.
8. Non Compliance
Excessive absence, lateness or non-compliance with reporting procedures will result in warnings, suspension or termination.
9. Review and Update
This policy will be reviewed and updated as required by business needs.
Policies for Safety and Compliance
15. Health and Safety Policy
A Health and Safety Policy shows an organization’s commitment to a safe working environment for their employees. This policy in line with the Factories Act, 1948 and other safety regulations in India, covering workplace hazards, emergency protocols and prevention.
It may include provisions for fire safety, ergonomic practices and health check-ups to promote employee well-being.
A strong health and safety policy not only complies with legal requirements but also boost employee morale and reduces workplace accidents.
Health and Safety Policy Template
1. Purpose To keep everyone safe, healthy and hazard free in the workplace.
2. Scope This applies to all employees, contractors and visitors at all company locations and sites.
3. Responsibilities For
- Management: Compliance with health and safety regulations and provision of resources.
- Employees: Follow safety procedures, report hazards and wear PPE kit if required.
- HR and Safety Team: Conduct safety training, audits and incident investigations.
4. Workplace Safety
- Regular safety checks and hazard identification.
- Clear evacuation procedures.
- First aid kits and emergency response training.
5. Health and Hygiene
- Keep the workplace clean and hygienic.
- Encourage personal hygiene practices, handwash and use of sanitizers.
6. Equipment and Tools
- Tools and machinery must be in good working order.
- Safety gear such as gloves, helmets and goggles where necessary.
7. Reporting Incidents and Hazards
- Employees must report accidents, injuries or hazards straight away.
- Incident reports will be reviewed to prevent reoccurrence and improve procedures.
8. Training and Communication
- New employee induction and periodic refresher training.
- Clear signage for safety procedures and exit routes.
9. Review and Updates
- Reviewed annually or when regulations change.
- Employees will be notified in advance.
16. Drug and Alcohol Policy
A Drug and Alcohol Policy sets clear guidelines to prohibit the use of drugs and alcohol in the workplace to maintain a safe, productive and professional environment.
This policy typically includes measures for dealing with substance abuse, random testing protocols and support programs for rehabilitation. Adhering to this policy protects the organization from safety risks, legal liabilities and performance-related issues and promotes a culture of responsibility and professionalism.
Drug and Alcohol Policy Template
1. Purpose: To ensure a safe, healthy and productive workplace by eliminating drug and alcohol use in the workplace.
2. Scope: This policy applies to all employees, contractors and visitors at all company locations and sites.
3. Prohibited
- Possession, use or distribution of illegal drugs or alcohol on company property.
- Reporting to work under the influence of drugs or alcohol.
- Misuse of prescription drugs that affect work performance or safety.
4. Employee Responsibility
- Keep the workplace drug and alcohol free.
- Inform the manager or HR of any prescription medications that affect performance.
- If observe any violations of this policy, please report them.
5. Company Responsibility
- Offer support through employee assistance program (EAP) if required.
- Conduct random drug and alcohol testing.
- Investigate all incidents of potential drug or alcohol misuse.
6. Testing and Screening
- Random testing for employees in safety critical roles.
- Post-incident testing if an accident or injury occurs.
- All testing will be in accordance with relevant laws and regulations.
7. Consequences
- Breaches of this policy will result in disciplinary action including termination.
- Refusal to test will be a breach of this policy.
8. Support and Recovery
- Employees with substance abuse issues should seek help.
- The company may offer counseling or rehabilitation programs.
9. Review and updates
This policy will be reviewed annually or as required.
17. Fraud Policy
A Fraud Policy is vital to protect an organisation’s financial and reputation by preventing and dealing with fraud.
This policy defines what fraud, including embezzlement, misrepresentation, data manipulation and misuse of company resources is.
It outlines the process for reporting suspected fraud, whistleblower protection and promoting transparency and accountability. The policy requires regular audits, training and checks to identify vulnerabilities and reduce financial risk.
Fraud Policy Template
1. Purpose: To prevent, detect and address fraud to protect the company’s assets and reputation.
2. Scope: All employees, contractors and third-party associates.
3. Definition of Fraud Fraud includes misappropriation of funds, forgery, theft, false expense claims and manipulation of company records.
4. Roles & Responsibilities
- Management: Promote ethical behaviour and implement fraud prevention controls.
- Employees: Report fraud and follow company policies.
- Compliance Team: Investigate and address fraud reports.
5. Reporting fraud to a manager, HR or through the confidential whistleblowing hotline.
6. Investigation The compliance team will investigate, gather evidence and take action as required, including disciplinary action if fraud is found.
7. Confidentiality & Protection Reports will be treated as confidential. Whistleblowers acting in good faith will not be retaliated against.
8. Disciplinary Action Fraudulent activity may result in termination, legal action or prosecution.
9. Policy Review The policy will be reviewed annually.
Acknowledgment I, [Employee Name], have read and understood the Fraud Policy.
Signature: _____________ Date: ____________
Policy For Grievance and Dispute Resolution
18. Employee Grievance Redressal Policy
An Employee Grievance Redressal Policy is a must for any company so that employees have a formal channel to raise their concerns or complaints about workplace issues.
This policy is a proactive tool for addressing grievances in a fair and timely manner so that issues don’t escalate into big disputes. In India, the Industrial Disputes Act, 1947, is the legal framework for resolving industrial disputes and grievances.
As per the Act, employees can approach a grievance redressal system when they feel their rights or working conditions are being compromised.
Employee Grievance Redressal Policy Template
1. Purpose: To have a fair, transparent and easy way for employees to raise and resolve issues.
2. Scope: All employees including permanent, temporary and contract staff.
3. Definition of Grievance: A grievance is any concern, complaint or dissatisfaction with work conditions, relationships or company policies that affects an employee’s performance or well being.
4. Grievance Redressal Process
- Informal Resolution: Employees are encouraged to talk to the concerned person or supervisor.
- Formal Complaint: If not resolved, employees can submit a formal grievance to HR in writing.
- Investigation: HR will review the complaint, collect evidence and conduct interviews as needed.
- Resolution: A resolution will be proposed and the employee will be informed of the outcome.
5. Roles & Responsibilities Employees: Raise grievances in a timely and respectful manner. Managers/Supervisors: Address grievances early to prevent escalation. HR Department: Investigate, maintain confidentiality and support fair outcome.
6. Confidentiality & Non-Retaliation: All grievances will be kept confidential. Retaliation against employees for raising grievances is not allowed.
7. Escalation: If not resolved, grievances can be escalated to senior management or grievance committee. 8. Policy Review: This policy will be reviewed every year.
Acknowledgment: [Employee Name], agree to this Employee Grievance Redressal Policy. Signature: ____________________ Date: ______________
Policy For Travel and Expense Management
19. Travel Policy
A Travel Policy defines the procedures and reimbursement guidelines for employees travelling for work. It includes booking of transportation, accommodation and daily allowances and cost-effectiveness and company standards.
This policy also covers safety measures, expense reporting, and the approval process to ensure accountability and convenience for traveling employees. A clear travel policy reduces ambiguity and streamlines expenses, benefiting both employees and the company.
Travel Policy Template
1. Purpose To travel safely and cost effectively.
2. For All employees.
3. Travel Authorization
- Approve: Manager approval before booking.
- Book: Use approved platforms.
4. Expenses
- Eligible: Transport, accommodation, meals, business expenses.
- Reimbursement: Submit within [X] days with receipts.
5. Safety & Security
- Health: Follow health advisories and have insurance.
- Emergencies: Contact HR or manager.
6. Roles & Responsibilities
- Employees: Plan travel according to policy and submit on time.
- Managers: Approve travel and claims.
- Finance: Pay and audit.
7. Non-Compliance Will result in no reimbursement or disciplinary action.
Signature: ________________ Date: ________________
Policy For Recruitment and Workforce Management
20. Hiring Policy
A Hiring Policy is the foundation of a smooth and efficient recruitment process to attract, evaluate and retain the best talent while being ethical and compliant.
This policy covers every stage of recruitment from defining job requirements and writing job descriptions to interviews, assessments and background checks.
It ensures fairness by being equal opportunities, promoting diversity and removing bias in decision-making. A clear hiring policy also aligns recruitment to the organisation’s goals to have a workforce that contributes to its growth and culture.
Hiring Policy Template
1. Objective To be fair and efficient.
2. Applies to All roles and types of employment.
3. Process Requisition: The department submits a request.
- Posting: Job Description.
- Screening: HR shortlist candidates.
- Interviews process: HR and managers interview.
- Selection: Offer made to the chosen candidate. Onboarding: Complete paperwork.
4. Roles HR: Negotiation and Managing candidates. Managers: Interview and selection.
5. Equal Opportunity All are equal.
6. Background Checks Employment is background checked. 8. Confidentiality Candidate info is private.
Also Read: Future of Recruitment: 14 Top Hiring Trends for 2025
Statutory Compliance Checklist for HR Policies
Overview of key labour laws that influence HR policies in India to protect employee rights and ensure workplace compliance.
1. Factories Act, 1948
- Do not work more than 48 hours per week and give weekly holidays.
- Maintain health and safety standards – ventilation, lighting and sanitation.
- Provide necessary safety gear and conduct regular safety training for employees.
- Implement welfare measures – first aid, restrooms and drinking water facilities.
2. Shops and Establishments Act
- Define employment terms – working hours, leave and wages.
- Keep records of employee attendance, overtime and wages as per state rules.
- Provide holidays, leaves and termination procedures.
- Display employee rights and compliance notices.
- Child employment prohibition
3. Payment of Wages Act, 1936
- Pay salaries by 7th or 10th of the month depending on the number of employees.
- Don’t make unauthorized deductions and communicate permissible deductions clearly.
- Give pay slips to employees with details of earnings and deductions.
- Establish a grievance redressal mechanism for wage disputes.
4. Provident Fund (EPF) Act, 1952
- Register all eligible employees under EPF and deposit contributions on time.
- Contribute 12% of employee basic salary and dearness allowance to EPF account.
- Ensure employees know their PF account, UAN number and withdrawal process.
- Conduct regular audits to check EPF compliance.
5. State Insurance Corporation (ESIC) Act, 1948
- Register employees earning up to ₹21,000 per month under the ESIC scheme.
- Deduct 0.75% of wages and contribute 3.25% as the employer’s share towards health insurance.
- Employees know their benefits: Medical care, sickness benefits, maternity and disability.
- Keep records and submit reports as per ESIC.
How to Create HR Policies: A Step-by-Step Guide
Drafting HR policies requires planning, alignment with business objectives, and compliance with laws.
Below is an overview of key labor laws that influence HR policies in India:
1 Step: Organizational Needs
- Determine the size, structure and industry of your organization to identify the areas that need policy.
- Review existing processes and identify the gaps that need to be standardized.
- Gather inputs from stakeholders including HR and employees to address their concerns and expectations.
2 Step: Legal and Regulatory Research
- Go through local labor laws such as the Factories Act, Shops and Establishments Act and EPF Act.
- Ensure policies are compliant to avoid penalties and be fair.
- Stay updated on state and central regulations that affect employment practices.
3 Step: Policy Objectives
- Clearly state the purpose of each policy and its impact on the organization and employees.
- Align policies to company values, mission and long-term goals.
- Prioritize policies on critical areas such as workplace safety, leave and grievance.
4 Step : Policy Framework
Use simple, concise and non-technical language so all employees can understand.
Include the following for each policy:
- Policy Title: Name of the policy (e.g. Leave Policy, Code of Conduct).
- Scope: Who the policy applies to.
- Purpose: Why the policy exists.
- Guidelines: Detailed instructions or guidelines.
- Procedures: Steps for implementation or enforcement.
5 Step : Review and Approve
- Get feedback from legal advisors to ensure compliance with labor laws.
- Get HR professionals and department heads to validate the policies.
- Pilot test policies in smaller teams or departments to identify potential issues.
Conclusion
HR policies in India are the foundation of a happy, compliant and productive workplace.
In countries like India where laws are dynamic and employee expectations are changing, so robust HR policies ensure the organisation is compliant while creating a positive work environment.
Policies like POSH and Leave Policy to workplace-specific guidelines, safety and flexibility each policy play a crucial role in defining the employee-employer relationship.
Accurately drafting policies with transparency and fairness protects the organization from potential risks while building trust and loyalty among employees. Regularly Review and update HR policies to align with legal updates and organisational needs ensures relevance and effectiveness.
