What are the purposes of HR policies in India?
Company HR policy in India is in place to ensure that no conflict arises between the staff and management. HR policy in India is critical to maintaining successful practices in workplaces. They must be fair and there should not be any chances of any discriminatory treatment. Following are the purposes for setting up a clear HR policy for a private limited companies in India:
- Employee’s complaints, difficulties, and grievances are addressed and resolved with a fair trial.
- HR policies should ensure that employee’s requirements are fulfilled and they are provided appropriate benefits as per their posts.
- These policies help employees to raise their voices for equal pay for equal work.
- They assist in the growth of the employee as per the company’s requirements.
- This helps in ensuring that discipline is maintained at the workplace.
- Protects people from poor behaviour of co-workers and management.
It ensures that staff gets the benefits of paid vacations and holidays.
Types of HR policies
HR policies for a private limited in India are of two types. They are specific and general policies.
Specific HR Policy
Those HR rules that are designed to cater to the needs and concerns of an organisation are specific policies. The HR department of the company creates these rules as per the requirement of the company. These policies include employee salary, benefits, well-being, rewards, recruiting, etc.
General HR Policy
These are the policies that every company in India needs for operations. General HR policies in India include employment practices, working conditions, and workplace processes regardless of the number of employees in a company.
10 key areas of HR policy in India
Now, we know what are company HR policies and their purposes. Here, we will discuss the 10 key areas of HR policy for a private limited in India. These 10 areas of HR policy in India define the process through which employers and employees can work together to achieve the company’s goal.
Working hours
The working hour policies must be made according to the labour laws of India. HR policy in India must state the working hours and timing policy of the company. It should include the working hours, additional hours of work, lateness of work, and overtime benefits. According to the new labour code, the daily working hours are restricted to 12 hours and 48 hours a week. This also opens a door for 4 day working week for the Indian employees. Across all industries, the overtime working hours have been increased from 50 hours to 125 hours.
Code of conduct
The code of conduct comprises the company’s work regulations and rules that every employee should abide by. This helps to promote and maintain a healthy working environment for workers. This HR policy for a private limited company in India informs the workers about the policies of behaviour and how to maintain discipline. Code of conduct includes equal rights policy, technology usage policy, conflict of interest, media policy, clothing codes, and working environment policy. This also contains information about the process to report a breach of the code of conduct.
Leave policy
Every company in India should have a good leave policy to provide a clear picture of the leaves an employee is entitled to. Company HR policy of leaves should describe the paid leaves and unpaid leaves (as applicable). Paid leaves comprise sick leaves, casual leaves, national and public holidays, as well as maternity and paternity leaves. According to the law, a pregnant working woman is entitled to 26 weeks of paid leaves and 12 weeks of unpaid leaves. HR policy for a private limited company in India should include unpaid leave and explicit guidelines for pay cuts for late arrivals and half days. Employees in India are entitled to paid holidays per week.
Interpersonal relationships
Company HR policy in India should highlight the rules of interpersonal relationships. These HR policies should explain the rules of business interaction between employers and employees. These policies must define the roles of the employees in different posts. This is important to hold someone in a supervisory position accountable for the way they affect other employees. It determines the ability of a person to affect other employees during and after office hours.
Wage management and appraisal
One of the key areas of employee management is payroll. Employee pay is covered under government acts. Thus, a company’s payroll should adhere to the wage law and offer competitive compensation to the employees. Also, the company’s HR policy should focus on performance management and appraisal. This should set up a fair process of appraisal cycle for every employee. This policy should enable employees to discuss their performance and necessary training, counseling, and verbal, and written warnings.
Flexible work culture policy
Companies across the world have seen a dramatic shift in work culture during the pandemic. Most companies were compelled to adopt the work-from-home culture. Today, employees are looking for more flexibility to choose their work location or workplace. Thus, a flexible work culture HR policy in India is needed to look after the well-being of the employees. This policy should frame proper rules and structures to manage remote workers. This will create guidelines for employees to follow while working from different locations.
Employment contract
In India, it is a must for employers to file proper documentation for the employees going to work in the company. As per the employment law, it is essential to file proper documentation. A proper contract help to navigate through the complex employment framework. This employment contract must contain information about the time of probation and the probation assessment procedures. It should inform the employees about the rules that are in place for them to become eligible as permanent employees. This contract should also explain the employment termination rules and conditions. This HR policy in India will assist HR in either terminating an employee or processing a resignation.
Sexual Harassment Policy
The Indian government has laid strict laws to protect women against sexual harassment in the workplace. Every company having more than 10 workers must set up an internal complaints committee. According to The Sexual Harassment Act, 2013, a company HR policy must have a sound sexual harassment policy to address and resolve the complaints from women employees. Also, a grievance redressal system should be in place to resolve complaints of job harassment, employee discourse, or other issues faced by an employee. Thus the HR policy in India should establish a Grievance Redressal Committee.
Employee provident fund
HR policy for a private limited company in India must abide by the Employees provident fund Act, 1947. Every employer is responsible to set a provident fund account for each employee. This fund provides income security to the employees. It provides many benefits to the employees like housing, medical care, education, and retirement pension. All Indian employers having more than 10 employees are liable to pay provident funds to the employees. Also, a company HR policy provides gratuity to the employees who have worked for 5 years in a row. According to the Payment of Gratuity Act, 1972, companies are required to pay gratuities to eligible employees.
Intellectual property
Employees have access to the company’s confidential information. Non-disclosure of this confidential information is an essential HR policy for a private limited company in India. Most companies mention in the employee contract if they want the employee to sign a non-disclosure agreement. If the employee signs the non-disclosure agreement then they should abide by it and should not pass the confidential information to anyone. Breaching the NDA can have serious implications on the employees.
India’s employment framework is complex. Thus, a strong company HR policy lays the foundation for any company in India. Employees are the most important asset of a company and thus regulations for managing them are of utmost importance. A sound HR policy not only provides a sensible working environment but also provides ample opportunity for growth and development. HR policy helps you to avoid errors and bad decision-making. Employee retention, enhanced loyalty, improved employee engagement, and productivity are the rewards of a good HR policy. A good HR policy is the amalgamation of the company’s objectives and work ethics, with employee welfare. It empowers the employees, managers, supervisors and leaders to make a decision with confidence to achieve the goals of the company.
