Top 5 Human Resource Policies in India

Top 5 Human Resource Policies in India

The primary goal of HR policies is to increase employee productivity and ensure the organization’s smooth operation. Incorporating HR policies creates a base or a solid foundation for businesses to manage and lead their employees to growth and prosperity. It also protects the company from legal compliance issues if one of its employees files a lawsuit.

What are HR Policies? 

HR strategies are also defined as concepts and behavioral norms that govern an organization’s interaction with its employees. A policy proposal of this type establishes guidelines for a wide range of employment connections within the company. The goal and significance of HR rules are self-evident. Every company requires policies to promote consistency in behavior and equality in employee relations.

What are the types of HR policies? 

Below we have listed the types of hr policies in india

1. Employment agreement

In India, it is critical to keep proper documentation on all employees who work for the company. The employee contract serves as a catch-all for various HR policies and agreements.

According to India’s employment laws, proper documentation of employees is required to ensure appropriate navigation through the complex and diverse employment framework.

As a result, having accurate and up-to-date documents that demonstrate the employee’s compliance with the company will benefit them in the long run and save them from any legal hassles later. As a result, you must adhere to labor and wage laws when processing documentation.

2. Employee Wages

Employee payroll is an important aspect of employee management. The HR department’s job is to manage the company’s employee payroll effectively. This includes paying competitive salaries to employees and adhering to government policies.

Various acts passed by the government cover the employee wages. The most notable is the Minimum Wage Act of 1948. This act establishes a specific wage as the minimum wage for skilled and unskilled workers. The act requires employees to earn the ‘Basic’ salary to cover their living expenses.

3. Code of Conduct 

The Code of Conduct consists of its policies, including its vision, mission, and ethics. This is designed to inform employees about workplace behavior policies and to maintain workplace discipline.

4. Leave Policy

According to the requirements, every company should have a good leave policy to provide a clear picture of the leaves they would be entitled to take in a year. The policy should include a proper division of the leaves into paid leaves, sick leaves, and casual leaves, among other things. It must also include a list of public holidays.

5. Employee Provident Fund

Every employer is required to establish an employee provident fund account for each employee. The Employees Provident Fund Act of 1947 ensures employees’ income security after retiring. It is more akin to a security fund that provides various benefits to employees such as housing, medical insurance, and a retirement pension.


It is important to note that companies with more than ten employees must provide provident fund benefits to their employees. As a result, if you have more than ten employees, you must have a provident fund scheme for them. To know more about the professional tax slab in Tamil Nadu, click here.

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