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Anyone who has been hired as an employee of a firm to identify, recruit, and evaluate new applicants as well as develop the HR rules and procedures of the company is a member of the HR department. The employees must adhere to their own company’s policies and processes, even if it is not required for two businesses to have identical HR policies.

What are policies and procedures?

An organization’s members are required to abide by a formal statement of a principle or regulation known as a policy. The organization’s members are instructed on how to execute or apply this policy through a procedure. Thus, whereas policies tell the organization’s members WHAT to do and are expressed in the form of declarations or rules, procedures, which are expressed in the form of instructions, tell the members HOW TO carry out these policies.

It may be argued that a company’s policies and processes constitute its true foundation and backbone. Since the HR department is in charge of finding the best candidates for the organisation and managing those candidates’ requirements, questions, and issues afterward. No organisation could function effectively without a robust HR team and even better policies and processes. Every employee in a company is unique, and as a result, so are their wants, requirements, aspirations, difficulties, and strategies for resolving those issues. The HR division of an organisation is responsible for carrying the full weight of all of this.

Why Do We Need HR policies?

Many types of companies must always have human resource policies in place because they must be able to serve and meet the demands of all types of individuals. Unsurprisingly, people with varied personalities get along well with one another. Written policies still have the authority to force people to abide by the rules of the organisation, even when few people may have the habit of accepting what is considered the norm and few may want to loosen the rules. Every business needs HR policies as a foundation to ensure efficient operation. These rules serve as the guiding principle that instructs the business and the employees on how to operate and behave in order to guarantee a secure working environment for everyone.

The most frequent justifications for HR policies in all kinds of organisations, together with their primary goals, are listed below:

  • HR policies serve as guidelines for employees, but they also help to respect and acknowledge their needs.


  • Human resources policies are necessary since every person has a unique perspective on everything. Nobody has to agree with everyone else. HR policies will therefore force everyone to respect and adhere to the same rules.


  • A well-written HR policy will lessen disagreement among employees and assist higher-ups in the firm in making the right decisions in accordance with the law.


  • A strong HR strategy will not only keep a business healthy on the inside, but it will also promote a positive corporate image among the public and potential employees.


Policies and procedures from the HR department are essential for SMEs because they provide management, uniformity, justice, and reason. They also ensure that personnel are aware of their responsibilities and the objectives of the Business and that employment regulations are adhered to.


Now lets discuss all the important policies that firms should implement today.


An agreement or term of hire that establishes the terms and conditions of an employee’s employment is known as a contract of employment (or employment contract). These agreements are typically in writing, although they can also be spoken. Employment agreement consist of many things such as commencement date which means when the employee has joined the organisation, Job title and description which states what is the role and responsibilities of an employee in an organistaion, Duration and employment this states the time till employee cant leave the organisation. There are other terms also such as Employee compensation and benefits, Employer’s rules, regulations, policies and practices, Confidentiality agreement, Non-compete clause, Dispute resolvement, Termination of Employment etc.

The appropriate documentation of the workers who work for the organisation is essential in India. A number of HR policies and agreements are encapsulated within the employment contract. To ensure smooth navigation through the intricate and varied employment framework, it is crucial to file the right documentation of the employees in accordance with Indian employment rules. Therefore, having precise and current records that demonstrate an employee’s compliance with the company will be helpful in the long run and save them from having to deal with legal issues down the road. Therefore, while processing papers, you must adhere to the labour and wage rules.



The term “remuneration” refers to monetary awards given to employees in exchange for their employee.  It could consist of a base pay, salaries, bonuses, or commission. Cash bonuses and any other workplace perks are included in total pay. And incentives refers to benefits other than cash. It can be in the form of allowances, empolyee empowerment, status etc. The government has passed a number of laws that cover employee wages. The Minimum Wage Act of 1948 is the most notable of these. This law establishes a specific salary as the minimum wage for both skilled and unskilled workers. The act requires that the workers receive the “Basic” income in order to cover their living costs.


Additionally, according to the Payment of Wages Act of 1936, an employee must get their whole monthly salary payment on the scheduled date without any unauthorised deductions. Because of this, businesses must abide by the law to remain compliant and competitive. One of the most important aspects of Indian HR policies is this.



The company’s policies, which include its vision, goal, and ethics, are contained in the Code of Conduct. This was developed to educate workers about workplace rules for conduct and to uphold discipline. One sort of HR policy that outlines the standards that workers must follow at work is the company’s code of conduct. Dress code, equal rights for all, computer usage policy, conflict of interest, media policy, appropriate work environment, etc. are all included in the policy. Additionally, it outlines the regulations and sanctions that apply if an employee transgresses the code of conduct.


Depart translates as “to travel for a brief period of time.” An employee is expected to satisfy both personal and professional obligations, thus one is expected to take brief time off to do so. Such absences must be properly allowed by the reporting manager before moving forward. Now, this query about why we require an employee leave policy also arises in the mind.  The most precious resource in a company is its people. Lack of effective leave management can result in illegal employee absences from work, decreased productivity, a reduction in productive hours, missed crucial deadlines, and more. A suitable leave policy manual for employees at work can solve this kind of problem. The following are some benefits of establishing a company HR leave policy: This HR Leave policy sample emphasises the need for each service to have policies that can assist them prepare for unforeseen circumstances.


  • With the proper leave policy, it complies with the law and ensures safety.
  • It contributes to improved communication between the company and the employee.
  • It offers more flexible time off options.
  • It guarantees that there will be no uncertainty on how a specific scenario should be handled.



EPF registration is required by employers since TDS is taken from employee pay. Additionally, only once employers generate challans via the EPFO employer site would they be obligated to process remittances. They must therefore adhere to this procedure. The Provident Fund covers risks resulting from retirement, illness, or death for employees and their dependents. One of its key components is a constant and transferable Provident Fund account. Any other employer is able to accept you. To all PF account holders who qualify, the Employee Deposit Linked Insurance Scheme (EDLIS) is offered. For life insurance premiums, 0.5 percent of the wage is withheld. For many long-term objectives, like getting married and going to college, money must be available right away. The PF balance accumulated during such times is frequently helpful. Unexpected occasions like weddings and other family gatherings, accidents, and sickness necessitate emergency financial support. The existence of a PF amount is quite advantageous. Additionally, the employer makes a matching contribution to the EPF of the same amount, plus 8.33% to the Employee Pension Scheme (EPS).



Gratuity plays a crucial role in human resources when it comes to smart hiring. It is intended to promote loyalty and bring stability. Many businesses, meanwhile, lack this expertise and disregard the regulations, which has a negative impact on the bottom line of the business. A statutory payment known as a gratuity is typically granted to workers who have worked continuously for at least five years. Based on the length of the employee’s complete service, it is given to them as a lump sum payment. Employees who are being fired or quitting but have five years or more of continuous service are entitled to a one-time payment as a gratuity payout from the employer. Maintaining employee happiness and engagement depends on this. Furthermore, according to The Payment of Gratuity Act, 1972, businesses are required by law to give their employees gratuities.



According to The Maternity Benefits (Amendment) Act of 2017, every business with more than 10 workers is obligated by law to offer maternity leave benefits to female employees. The perks are available to any woman who has worked for the business for 80 days. A working pregnant woman is entitled to a minimum of 26 weeks of paid leave for the first two children and an additional 12 weeks of unpaid leave, as per the statute. For employees of private companies, there is currently no law governing paternity expenses. Employees of the central government are eligible for a 15-day paternity leave to care for their wives and living children. The government has not yet approved the 2017 paternity benefits bill, which has been submitted.



Bram Lecker, an employment attorney in Toronto, tells Advocate Daily that in order to prevent workplace harassment, employers must have clear policies that are easy for employees to access. Workplace harassment can result in fines and other orders, such as making an apology and paying compensation, according to Lecker, the principal of Lecker & Associates. “There are three options available to us for the same behaviour. There is the Ontario Human Rights Code (OHRC), which is both a comprehensive investigation but mostly a litigated procedure by the Human Rights Commission, and the Occupational Health and Safety Act (OHSA), which is a complaint procedure. Additionally, you might consult a lawyer to file a claim against the employer for constructive dismissal, he adds. The treatments are quite effective. That is what employers fear. Lecker advises employers to make sure they cover every possible scenario that could qualify as harassing behaviour under the OHSA and OHRC when drafting their harassment policies, which are a necessity for businesses with more than five employees. He thinks that this should extend to overtly provocative behaviour, groping, and intimidation. An employee can complain to the provincial labour ministry if they experience workplace harassment or observe harmful working conditions, according to Lecker. If there has been a breach, the employer may be punished, but the complainant is not given any money.



Different firms’ work cultures have undergone a paradigm shift in the last year. Many of them were compelled by the pandemic to request remote work from their staff members. An adaptive work culture policy is now required in order to provide employees more freedom to select their workplace and location. The adaptive work culture policy should have the necessary guidelines and frameworks to control employees who operate from home or remotely. Employees will have a framework or set of rules to adhere to when working remotely as a result of this.



It is a reality for all employers. Some of your staff members might have future advancement plans for their professions. You can think an employee no longer fits into your overall plan of things. Both the employee and the employer experience emotional turmoil at these times. In order to develop a suitable leave policy that outlines the procedures for an employee who wants to leave the firm, the employer must make sure to do so. This will make it easier for the HR department to dismiss an employee or handle the employee’s resignation request in accordance with the legal requirements set forth by the labour laws. Every business needs HR policies as a foundation to ensure efficient operation. These rules serve as the guiding principle that instructs the business and the employees on how to operate and behave in order to guarantee a secure working environment for everyone.



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