Select Location

8 Important HR Policies of Companies in India

There are several HR policies and procedures that need to be followed by companies in India. They play a key role in ensuring a healthy work environment and a harmonious culture. These 8 things signify the basics of HR policies and practices that should be incorporated by every Indian company.
Written by:
Swati Shalini
Published on

A business, be it a start-up, a small company, or a multi-million dollar enterprise, requires a Human Resource (HR) department, who drafts the HR policies and defines the work culture and procedures of a company. HR policy is an important document that defines the code of conduct, procedures, and rules of the company that every employee has to follow. 

For a business in India, HR policies and procedures are necessary. HR's also draft the company’s vision and way of working. HR policies in India need to be prepared in a defined and correct manner, for which you can always take the help of labor lawyers. HR policies in India create a sense of answerability and accountability in the employees while addressing the key issues. Non-compliance to the organization's goals and HR policies can result in performance issues or termination of employment

What is the HR policy in India?

HR policies of companies can be defined as a collection of the company’s policies that lay down a strategy for developing, communicating, and enforcing a set of practices that reflect the company’s standards of acceptable behavior. 

HR policies of a company define the process through which an employer and employee(s) together can achieve the company’s goals. The HR policies for a company must be drafted in accordance with the company’s objectives and work ethics, with the assistance of an employment and labor lawyer.

What are the 8 important things in HR policies and practices in India?


hr policy and procedures

Well, after understanding the meaning of HR policies, let us now have a look at the 8 most important things in HR company policies in India:

  • Working Hour - For a company in India, HR policies must state the working days and timing policy of the company. It must include information relating to overtime, additional hours, and lateness for work. The working hour policy of a company must be made in accordance with the working hours prescribed in the labor laws of India.
  • Code of Conduct - In India, the HR policy of the company must state the code of conduct that the employees have to abide by and the business environment that has to be maintained while working with each other. It must also mention the procedure to report a breach of this code of conduct. 
  • Leave Policy - The leave policy of a company must include provisions relating to leave allowed annually, including provisions relating to maternity leave. It must state the national holidays, sick leaves, and paid leaves granted to the employees. Also, the stipulation related to non-paid leaves taken by employees and the percentage of salary deducted for such leaves must be stated. 
  • Interpersonal Relationships - In India, the HR policy of a company should state the company’s code with regards to interpersonal relationships and business interactions between employers and employees. The policy must define the role and responsibility of employees in supervisory positions, and their ability to influence other employees during and after office hours.
  • Performance Management & Appraisal - Performance improvement and appraisal policy of the company must be a part of the company’s HR policies. It should clearly state the methods to improve an employee’s performance like training, counseling, verbal, and written warning, etc. 
  • Probation - HR policies must state the time period of probation and probation assessment procedure after which an employee may be hired as a permanent employee of the company. 
  • Grievance Redressal - The HR policy manual in India must also mention about the grievance redressal procedure that is to be followed by the company upon receiving a complaint from an employee. The HR policies and procedures in India must also establish a Grievance Redressal Committee that addresses any complaints from employees regarding job harassment, employee discourse or other issues faced by an employee during his course of employment and Sexual Harassment Committee to deal with any sexual harassment complaints.

  • Intellectual Property - Policy about non-disclosure of a company’s confidential information and Intellectual Property that the employees get access to, must be a part of the HR policies for employees. They must mention in the contract of the employee that if the company requires its employees to sign a Non-Disclosure Agreement regarding the company’s information accessed by an employee during his/her course of employment, he/she should be willing to abide by it. 


What are HR policies and procedures meant for?

The list of HR policies in India is enacted to ensure no conflicts arise among employees and the management. 

An employee can take legal action against the employer who violates his/her own HR policies as they provide an official set of rules and regulations that the organization has to follow along with its employees. 

The best HR policies in Indian companies ensure that all employees follow the rules and that the management consistently enforces them. This eliminates any chances of discriminatory treatment by ensuring that a pre-established chain of disciplinary actions be followed in the event that the HR policies have been violated. 

Companies now send their HR policies in PDF form to all employees rather than the traditional way of keeping an HR policy manual in office, which is rarely read or referred to by employees. 

Also, a company must not opt for a readymade HR policy format available over the internet as the working requirements of every company is different. Therefore, the HR policies of companies must be drafted with the help of experienced employees and labor lawyers who you can easily find online.

hr policies of companies


Where can you find an expert lawyer?

In case, you are looking for an employment or labour lawyer who can help you draft the HR policies for a startup company, then look no further than MyAdvo. 

MyAdvo acts a legal concierge connecting you with expert lawyers in every legal field, so as to answer any kind of legal issue you might be dealing with. MyAdvo assists you by providing a list of details that has information of name, contact, fees, experience, and rating of advocates in each field of law near you.  

You can find a lawyer anywhere in India. So, send in your queries at or call at +91-9811782573 and get closer to eliminating all your worries!