HR policies are the framework and principles that an organization uses to manage its staff. They endeavour to ensure that the company complies with local government regulations. This is accomplished through developing processes to satisfy the ever-changing needs of the government. In India, HR policies are really concerned with striking a balance between protecting employees and the company’s interests and goals.HR rules are designed to make it easier to manage personnel in an effective manner. The establishment of HR rules lays the groundwork for effectively managing people and dealing with difficult situations. It also aids in the avoidance of compliance concerns and legal repercussions. The HR department is also the first to be notified of an issue such as a fight breaking out or a drop in employee productivity. As a result, having a solid HR department is particularly important because they can detect these issues early on and take steps to prevent them. This aids in the long-term protection of the company. However, a legal background is required for an HR department to safeguard the organization. Having the appropriate HR policies in place allows HR to take prompt disciplinary action in the event of future disagreements. There can be no bias or partiality in the implementation of a company’s policies because they are documented.

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A. General Policy

General policies are the types of policies that are required and present in every organization. They are usually formulated by the company’s leaders.

BSpecific Policy

HR rules that are customized to a single organization’s difficulties or concerns are known as specialized policies. The HR department tailors them to the specific needs of the company. These policies cover topics such as employee salary, recruitment, benefits, and so on.

HR staff is solely responsible for ensuring that a company complies with the country’s local legislation. As a result, company policies should be developed with the utmost knowledge and experience. This article shall provide insight into various types of HR policies.


Organizations are not required by law to form employment contracts for local employees in India. It is, nonetheless, a crucial document that every company should produce. Employee contracts are similar to an umbrella that encompasses all agreements and contracts relating to employees. These documents are essential since Indian employment regulations are a complicated and diversified framework to navigate. As a result, possessing current records to establish the company’s compliance will safeguard it for several years. Wage regulations, labour laws, the contract act of 1872, and the local state’s employment regulations are all crucial regulations to consider before writing the company’s employment contracts.


Gratuity is a means for a corporation to express gratitude for five or more years of service offered by an employee. When an employee retires, resigns, or is laid off, the company gives a gratuity. It is a crucial business practice to have happy personnel. Furthermore, under the Payment of Gratuity Act of 1972, it is a legal need to pay employees’ gratuity.


Employees’ provident fund legislation of 1947 guarantees income security throughout retirement as well. It is a social security fund that provides employees with benefits such as retirement pensions, medical insurance, and housing care, among other things. It’s worth mentioning that only companies with more than ten employees are required to maintain a Provident Fund.


A company’s code of conduct policies contain the organization’s vision, ethics, and mission, as well as being designed to promote and maintain a positive working environment for employees. It contains the company’s work regulations, which all employees must follow. Equal rights policies, technology usage policies, dress codes, enabling work environments, media rules, conflict of interest regulations, and other policies are included in India’s code of conduct policy.


Managing employee payroll is a vital aspect of an HR department’s responsibility, but so is ensuring that employee salaries are competitive in the market and in accordance with government rules.

Several acts in India cover an employee’s wages. One of them is the Minimum Wage Act of 1948, which establishes the minimum wages for both skilled and unskilled labourers. It allows employees to earn enough money to cover their essential living expenses.

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Every company must go above and beyond to make their workplace a safe place for women to work. It’s not only a legal requirement; it’s also a moral one. In India, legislation has been amended to prioritize the safety of women in the workplace. The Indian corporate sector has been rocked by the 5-year-old sexual harassment act of 2013. The act has received widespread applause and has even resulted in the closure of a few businesses. Furthermore, the act protects not only an organization’s employees and interns but also any woman who visits the company or a woman customer. To be able to aggressively address all accusations, every organization must have a sexual harassment policy. Every company with more than ten employees must establish an Internal Complaints Committee, according to the act. In addition, the policy should outline the procedures that should be performed in such situations.


A communication policy aids in the establishment and maintenance of open communication among employees at all levels of the company. This policy covers your company’s e-mail, mobile phone, phone, notice boards, notes, and other policies. It must also put in place the proper mechanisms for updating existing technology and communication channels on a regular basis.


A Work from Home policy is a contract between a company and an employee that allows the employee to work from home. It should specify the work schedule, deliverables, and procedures in detail. Even though there are no rules in place, having a clear and defined policy in place will be beneficial. It must clarify the procedure for an employee to apply for the privilege of working from home, as well as who is qualified for specific benefits.


In India, any employer with at least 20 employees is required to establish a Grievance Redressal Committee under section 9C of the Industrial Disputes Act, 1947. Job harassment, sexual misconduct, unfair decisions, and other grievances should be heard, and a policy should be in place to address them. Meanwhile, HR policies such as the grievance policy are critical to an organization’s growth and good functioning.


The purpose of the Awards and Recognition Policy is to provide employees with a one-time prize or recognition for exceptional performance. It was designed to motivate people to enhance their performance individually and as a group. The awards and recognition milestones are created in accordance with the company’s overall vision and goal. A monetary or non-monetary award can be given.


Appraisal and Performance Management, One of the HR policies intended to provide employees a clear idea of what is expected of them is the performance management policy. It provides a suitable framework within which an employee’s performance can be managed. This can be accomplished by employing a variety of tools, techniques, and processes. Identifyingmanaging, measuring, and developing the performance of human resources in an organization is what performance management entails. Because performance assessment is a continuous process of reviewing an employee’s performance, it should be included in monthly HR activities.

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There will always be a point when an employee must be terminated. Such events are always fraught with strong emotions. As a result, it’s critical to develop a leave policy for your company that walks you through the process of letting an employee depart. This will assist HR employees in following the proper procedures in accordance with federal rules. It’s worth noting, for example, that employers aren’t allowed to fire employees without cause. It is necessary to design a correct and comprehensive termination policy in order for the employee to be compliant.


When a new employee is hired, they are normally put on probation for a period of time. This usually lasts three months or longer. It allows the employer to assess an employee’s performance as well as the terms under which the person will be confirmed into the organization. Probationary periods are required for all employees in a company. As a result, the employee has the opportunity to learn about the company’s work environment and workload. The probation policy lays out the terms and limitations that the employee must adhere to while on probation. The policy should cover the probationary term, as well as procedures, post-confirmation. It should also cover the employee’s code of conduct, performance requirements, and company goals.


The HR department is solely responsible for ensuring that the company’s policies are in compliance with local, state, and national legislation. Furthermore, it is critical that HR personnel are aware of these rules and follow the proper processes. Because India’s business rules are complicated, more caution should be exercised when developing the company’s rules.

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