All about employment HR policies in India

All about employment HR policies in India

Employment policies mean for policies framed for the working conditions of the employees in organization. There are numerous employed policies which are required to be set up for any company or organization. These policies are also known as HR policies. These policies are required to be framed by keeping in view the new labour law legislations i.e. Industrial Relations Code, 2020, the Code on Social Security, 2020 and Occupational Safety, Health and Working Conditions Code, 2020. In simplest terms, it defines the code of conduct, procedures and rules of the company that every employee needs to follow.

What is the need of HR policies?

The HR policies plays phenomenal role in relationship between employer and employee. These are mean of communication between employer and employee. Besides this, this helps senior management of any organization in better decision making. Moreover, it brings transparency in work process and makes employees more productive. Furthermore, it guides the company in a strategic way so that no complications may arise in future during the course of business.

What should be included in the HR policies?

The employment policies require due diligence while preparing so that company or organization may not have to face difficulties in future. There are some important factors which are required to be taken into consideration while framing the policies related to the employees. These are enumerated below:-

  • Working Hour: – HR policies must include the working days and hours of the employees. It must state the information related to overtime benefits, additional hours for work. These working hours’ rules must be drafted in accordance with the existing labour laws in India.
  • Leave Policy: – Company must contain the provisions related to allowed annual leaves, maternity leave, sick leaves and paid leaves granted to the employees. Besides this, percentage deduction from salary for un-paid leaves must also be a part of such policy.
  • Code of Conduct: – It contains the vision, ethics and the mission of the organization. And aimed to build and maintain the right business environment for employees. The HR policy of any organization must frame the code of conduct that the employees have to abide by while working with each other.
  • Payment of wages: – Employees must be paid according to the rules prescribed under employment law. The manner of payment of wages and other related things must be a part of employment policy of any organization.
  • Internal relations: – The Company must ensure to lay down rules concerned with interpersonal relationships and business interactions between employers and employees. It must define the role and responsibility of employees in supervisory positions and their ability to influence other employees during and after office hours.
  • Hiring Process: – The organization must state hiring process in its HR policy like the probation period, probation assessment procedure after which an employee may be hired as a permanent employee of such organization.
  • Grievance redressal mechanism: – Mentioning of mechanism which can dispose of the complaints of the employees is also an integral part of employment policy of any company. Job harassment and other issues which may arise during the course of employment should be resolved through redressal procedure. Moreover, the policy must also state the procedure for disposal of complaints raised by the employees and establishment of the grievance redressal committee.
  • Health and safety: – Safety policies include safety and emergency procedures and require employees to report work related injuries immediately. The Occupational Safety, Health and Working Conditions Code, 2020 makes it mandatory for employers to have specific policies and programmes at place of employment if hazardous work exist therein.
  • Confidentiality: – During the course of employment there are lots of instances where employees may have access to the confidential information of the company. Therefore, rules to protect such confidential information are required to be part of employment policy. It must be a part of the employment contract if employee entering so has to sign the Non-Disclosure Agreement relating to confidential information of the company.

Why HR policies are important?

These policies are enacted so that no conflict may arise between employer and employee during the course of employment. An employee can initiate legal course against employer who does not follow the HR policies. Furthermore, it settled a base through which employees can be managed well and situations can be handled. After this, existence of such policies ensures compliance with employment legislations and informs employees of their responsibilities and expectation of the company.


Employment policies enlighten employees and employers on how to handle a range of employment issues. Thus, plays a phenomenal role in practically and effectively implementing an organization’s goals. Without these policies, employees might get confused about organization’s culture and expectations. These policies and procedures should be transparent and applicable to all employees regardless of status in order to keep the employees on same page.

-Kiranpreet Kaur

Associate at Aggarwals & Associates, S.A.S. Nagar, Mohali