HR Policies: Meaning, Examples, List of 35 Policies, Templates and Laws (Complete India Guide)

By: Saurabh Papnai|21 Oct 2026
HR Policies

Every organisation runs on rules. When those rules live only in a founder’s head, in old email threads or in WhatsApp forwards, employees guess, managers improvise, and two people in the same situation get treated differently. Written HR policies fix that. They tell employees what is expected, tell managers how to decide, and show regulators that the business follows the law.

This guide explains what HR policies are, gives real examples and a sample, lists the 35 HR policies every Indian company should have, covers the latest Labour Code changes, and shares templates, formats and the HR frameworks people ask about most.

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HR Policies: What They Are And Why Every Business Needs Them

HR policies are the formal, written rules and principles an organisation uses to manage its people. They cover the whole employee lifecycle: hiring, pay, attendance, leave, conduct, performance, discipline, and exit.

In a ten-person startup, many of these decisions happen informally. As the company grows to 50, 200 or 2,000 people across cities, informal decisions stop working. One manager approves leave generously, another refuses it. One branch pays overtime, another does not. Without clear policies, these inconsistencies turn into complaints, attrition, and legal disputes.

In India, the stakes are higher today because the four Labour Codes have changed how wages, working hours, leave eligibility, and full-and-final settlement work. Policies written a few years ago may now be non-compliant.

Human Resource Policies

Human resource policies are the complete collection of rules an organisation maintains for its workforce. A typical set covers recruitment, onboarding, probation, compensation, benefits, attendance, leave, working hours, code of conduct, anti-harassment, performance, training, discipline, grievance redressal, health and safety, IT and data usage, travel and expenses, and separation. Together they form the operating system for people management, and growing companies increasingly configure them inside an HRMS software so the rules apply automatically.

What Is HR Policy?

An HR policy is a written statement that sets out how an organisation will handle a specific people-related matter. It explains what the rule is, why it exists, who it applies to, and what happens if it is not followed. A leave policy, for example, states how many earned, casual, and sick leaves employees get, how they accrue, how to apply, and who approves.

What Is Human Resource Policy?

"Human resource policy" is the full form of "HR policy". While "HR policy" usually refers to a single policy, such as the remote work policy, "human resource policy" is also used for the overall philosophy that ties every policy together: merit-based hiring, fair pay, equal opportunity, and a harassment-free workplace.

HR Policy Meaning

The meaning of an HR policy is best understood as a decision made in advance. Instead of deciding each case from scratch ("Can Priya carry forward her unused leave?"), the organisation decides once and writes it down ("Up to 30 days of earned leave can be carried forward"). Every future case is handled the same way, which brings consistency, speed, and fairness.

Define HR Policy

To define HR policy in one line: an HR policy is a formally approved guideline that governs the relationship between an employer and its employees and directs how people-related decisions are made across the organisation.

HR Policy Definition

A fuller HR policy definition: a set of principles, rules and procedures, approved by top management, that guides recruitment, compensation, conduct, development, welfare and separation of employees in line with organisational goals and applicable law. The key elements are that it is formal, approved, consistent, and aligned with both business goals and the law.

What Is the Best Definition of HR?

Human resources is the function that manages an organisation's people: how they are hired, developed, paid, engaged, protected, and separated, so that both the organisation and its employees succeed. HR policies are the rulebook HR uses to do this consistently.

Importance Of HRP: Why Good HR Policies Start With Human Resource Planning

HRP stands for Human Resource Planning: forecasting how many people, with which skills, the organisation will need, and planning how to get them. Planning tells you how many people you need; policies tell you how you will hire, pay, develop, and retain them.

The importance of HRP lies in turning hiring from a reaction into a plan. Good human resource planning helps the organisation budget accurately for salaries, spot skill gaps early enough to train people, build succession for key roles, avoid sudden layoffs by spotting surpluses in time, and support expansion. It also shapes policies directly: a company planning rapid hiring needs a strong recruitment and onboarding policy, while one planning automation needs a reskilling policy. For a complete walkthrough, read our guide to human resource planning.

Need of HRP

The need of HRP arises because business growth requires people to be ready at the right time; retirements, resignations, and promotions create vacancies that must be anticipated; new technology changes the skills required; hiring in a hurry is expensive; overstaffing wastes money just as understaffing hurts delivery; and labour laws limit how far existing staff can be stretched through overtime.

What Are the Benefits, Types and 7 Steps of Human Resource Planning?

The benefits of HRP are the right people at the right time, lower hiring costs, better salary budgeting, early identification of skill gaps, and stronger succession.

The types of HRP are strategic (long-term) planning, operational (short-term) planning, succession planning, and contingency planning. HRP is also described as hard (quantitative, numbers-based) or soft (qualitative, focused on skills and culture).

The 7 steps of human resource planning are:

  1. Analyse organisational objectives.
  2. Take stock of current human resources.
  3. Forecast demand for people.
  4. Forecast internal and external supply.
  5. Identify gaps (shortages or surpluses).
  6. Prepare an action plan: hire, train, redeploy or outsource.
  7. Monitor and adjust.

Examples Of HR Policies

Here are a few examples of HR policies written in plain, enforceable language:

  • Leave: "Employees earn one day of earned leave for every 20 days worked. Up to 30 days can be carried forward. Planned leave must be applied for in the HRMS at least three working days in advance."
  • Attendance: "Employees must mark attendance through the biometric device or mobile app. A 15-minute grace period is allowed three times a month. Missed punches can be regularised up to three times a month with manager approval."
  • Remote work: "Employees in hybrid-eligible roles may work remotely up to two days a week. Core collaboration hours are 11 am to 4 pm. Company data may be accessed only on company-managed devices."
  • Expenses: "Local conveyance is reimbursed at the per-kilometre rate for each grade, based on GPS-tracked distance. Claims must be submitted within 30 days with receipts."
  • POSH: "Any employee may raise a complaint of sexual harassment with the Internal Committee in writing within three months of the incident. Complaints are handled confidentially, and retaliation is prohibited."

What Are the Major HR Policies?

The major, main, and basic HR policies every organisation needs are: recruitment and onboarding, attendance and working hours, leave, compensation and benefits, code of conduct, POSH and anti-harassment, equal opportunity, performance management, grievance redressal, discipline, health and safety, IT and data protection, and separation.

What Are the Five Most Important HR Policies?

The five most important HR policies in the workplace are usually:

(1) the code of conduct

(2) the POSH and anti-harassment policy

(3) the leave and attendance policy

(4) the compensation and benefits policy

(5) the grievance and disciplinary policy.

Together, they cover legal risk, daily operations, and employee trust.

What Are 5 Examples of Human Resources?

Human resources are an organisation's people and their capabilities. Five examples: a software engineer's coding ability, a salesperson's client relationships, a manager's leadership, a machine operator's technical skill, and a support agent's communication skill. HR policies exist to attract, develop, and retain exactly these capabilities.

HR Policy Sample

Here is a complete HR policy sample for leave that you can adapt:

Leave Policy | Policy ID: HR-LV-01 | Version 1.0 | Effective date: [DD Month YYYY]

1. Purpose: To give employees time off for rest, personal needs, and illness while ensuring business continuity.

2. Scope: All permanent and fixed-term employees. Interns follow the Internship Policy.

3. Entitlements:

  • Earned Leave: 1 day for every 20 days worked, available after 180 days of work in the calendar year. Up to 30 days may be carried forward.
  • Casual Leave: 8 days per calendar year, credited monthly, not carried forward.
  • Sick Leave: 8 days per calendar year. A medical certificate is required for more than two consecutive days.
  • Maternity Leave: 26 weeks as per law.
  • Paternity Leave: 5 working days within three months of childbirth.
  • Bereavement Leave: 3 days on the death of an immediate family member.
  • Comp-off: 1 day for working on a weekly off or holiday, to be used within 60 days.

4. Procedure: Apply in the HRMS at least three working days in advance for planned leave. For sudden illness, inform your manager before your shift starts and apply on return.

5. Sandwich rule: Weekly offs and holidays falling between two days of leave will be counted as leave. (See our guide to the sandwich leave policy.)

6. Approvals: Reporting manager up to five days; department head beyond five days.

7. Leave without pay: Absence without approved leave will be treated as loss of pay.

8. Encashment: Unused earned leave above the carry-forward limit will be encashed at year-end on basic salary.

9. Review: Annually by HR.

Rules like these can be configured once in a leave management system, so accruals, sandwich counting, and approvals happen automatically.

HR Policies of Companies

HR policies of companies differ by size and industry. A 20-person startup may have a short handbook focused on leave, remote work, code of conduct, and POSH. A 2,000-person manufacturer will add shift rules, overtime, safety, canteen, contract labour, standing orders and union relations. An IT services company emphasises hybrid work, background verification, IP assignment, client confidentiality, moonlighting and certification sponsorship. Large listed companies also publish board-level policies such as whistleblower, human rights, and diversity policies.

HR Policies for Employees

HR policies for employees should answer the questions employees actually ask: How many leaves do I get? When is salary credited? What is my notice period? Who do I complain to if I am harassed? Can I work from home? How do I claim travel expenses? Writing policies from the employee's point of view, in simple language, makes them far more likely to be read. Publishing them in an employee self-service portal, where employees also see their leave balances and payslips, makes them practical rather than theoretical.

List of HR Policies: 35 Essential HR Policies for Indian Companies

Most HR policy lists online are written for American employers. Indian businesses need a list shaped by the four Labour Codes, the POSH Act, state Shops and Establishments Acts and the DPDP Act. Here are the 35 HR policies every Indian company should have, grouped by stage of the employee lifecycle.

HR tip: You do not need all 35 on day one. A 15-person company should start with the legally essential ones (appointment terms, POSH, leave, wages, statutory benefits, grievance and exit) and add the rest as it grows past 50 and 100 employees.

Hiring and Employment Terms

1. Appointment Letter and Employment Terms Policy: Under the OSH Code, every employee is entitled to an appointment letter. This policy standardises its contents: employee category, designation, CTC breakup, location, reporting manager, probation, notice period, and the policies the employee agrees to follow.

2. Equal Opportunity and Non-Discrimination Policy: Commits the company to fair treatment regardless of gender, caste, religion, age, disability, marital status, sexual orientation, or gender identity. The Rights of Persons with Disabilities Act, 2016 expects establishments to publish an equal opportunity policy, and the Transgender Persons (Protection of Rights) Act, 2019 requires a designated complaint officer.

3. Recruitment and Selection Policy: Defines how positions are approved, sourced, assessed, and filled, including internal job postings, structured interviews, conflict-of-interest declarations by interviewers, and offer approval limits.

4. Background Verification Policy: States what is checked (education, past employment, address, criminal record where lawful), when, how consent is taken, and what happens if discrepancies are found, in line with the DPDP Act.

5. Probation and Confirmation Policy: Sets the probation period (commonly three to six months), review checkpoints, extension limits, and notice periods during and after probation.

6. Contract Labour and Gig Workforce Policy: Under the Labour Codes, principal employers carry responsibilities for contract workers' welfare and grievances, and gig and platform workers now fall within the social security framework. This policy defines when contract staff can be used and how contractor compliance is checked.

Time, Attendance and Leave

7. Working Hours, Shifts and Overtime Policy: Sets daily and weekly hours (the general standard is eight hours a day and 48 hours a week), shift patterns, breaks, weekly offs, and overtime, which is paid at twice the ordinary rate with the worker's consent.

8. Attendance and Punctuality Policy: Explains how attendance is marked (biometric, mobile app, GPS), grace periods, late-mark rules, attendance regularisation, and loss of pay. A time and attendance system with geo-fencing removes proxy attendance.

9. Leave Policy: The most-read policy in any handbook. Covers earned leave (one day per 20 days worked, after 180 days of work in a year), casual and sick leave, comp-off, carry-forward, encashment and the sandwich rule. Many companies now add menstrual, wellness, or mental health leave.

10. Holiday Policy: Lists national holidays, state and festival holidays, and restricted or optional holidays. Multi-state companies need location-wise calendars.

11. Maternity, Paternity and Parental Policy: Covers 26 weeks of paid maternity leave for the first two children, adoption and commissioning mother leave, paternity leave, work-from-home options after maternity where the role allows, nursing breaks, and crèche access for establishments with 50 or more employees.

12. Remote and Hybrid Work Policy: Defines eligible roles, number of remote days, core hours, equipment and internet support, data security, and how remote attendance is recorded.

13. Night Shift and Employee Transport Policy: The OSH Code allows women to work night shifts with consent and adequate safety arrangements. This policy covers written consent, GPS-enabled transport, escorts where needed, drop verification and night-shift allowances.

Pay, Benefits and Reimbursements

14. Compensation and Salary Structure Policy: Explains pay structure, pay dates and permissible deductions. Under the Code on Wages, if excluded allowances exceed half of total remuneration, the excess counts as wages for PF, gratuity and other benefits. Our Labour Code salary impact guide explains what this means for take-home pay.

15. Statutory Benefits Policy (PF, ESI, Gratuity, Bonus): Covers Provident Fund, ESI, gratuity (now payable to fixed-term employees after one year of service), statutory bonus, and state Professional Tax and Labour Welfare Fund. Automating these is the core job of statutory compliance payroll software.

16. Bonus, Incentive and Variable Pay Policy: Defines eligibility, calculation method, payout timing, and treatment of employees who leave before payout.

17. Travel and Expense Reimbursement Policy: Grade-wise limits for travel, hotels, per diem and local conveyance, plus receipt rules and submission deadlines. Limits work best when out-of-policy claims are flagged at the point of submission.

18. Field Force and Conveyance Policy: For sales, service and collections teams: GPS attendance, visit logging, per-kilometre conveyance and daily allowance. GPS-tracked distance through field force management software ends mileage disputes.

19. Employee Loans and Salary Advance Policy: Sets eligibility, maximum amount, interest if any, EMI deduction through payroll, and recovery from full and final settlement.

Conduct, Ethics and Protection

20. Code of Conduct Policy: The anchor policy for behaviour: professionalism, integrity, confidentiality, company property, gifts and respect. Every other conduct policy should be consistent with it.

21. POSH Policy: Mandatory under the POSH Act, 2013 for workplaces with ten or more employees. It must define sexual harassment, constitute an Internal Committee with an external member, set the complaint and inquiry process and timelines, protect confidentiality, and prohibit retaliation.

22. Whistleblower and Anti-Retaliation Policy: A confidential channel to report fraud, bribery, or policy violations, with protection from retaliation. Listed companies must maintain a vigil mechanism.

23. Conflict of Interest and Nepotism Policy: Requires disclosure of relationships, investments, or outside roles that could influence decisions, and prevents employees from hiring or supervising relatives.

24. Moonlighting and Outside Employment Policy: States whether outside paid work is allowed, under what conditions, and how IP and confidentiality are protected.

25. Dress Code and Uniform Policy: Attire expectations by role, uniform and safety gear rules, and accommodation for religious or medical needs.

26. Drug, Alcohol and Smoking Policy: Prohibits alcohol and illegal drugs at work. Smoking in workplaces is restricted under COTPA, 2003, so specify designated areas, if any.

Technology, Data and Communication

27. IT Acceptable Use and Cybersecurity Policy: Rules for laptops, email, internet, messaging tools and personal devices, plus password standards, multi-factor authentication and incident reporting.

28. Data Protection and Confidentiality Policy: How employee and customer personal data is collected, stored, used, shared and deleted under the Digital Personal Data Protection Act, 2023, including consent, access controls and retention.

29. Social Media Policy: What employees may post about the company, clients and colleagues, and who is authorised to speak for the company.

30. Generative AI Usage Policy: Which AI tools are approved, what data must never be entered into them, how AI-generated work is reviewed, and disclosure expectations.

Performance, Growth and Wellbeing

31. Performance Management and Increment Policy: Review cycles, goal-setting, rating scales, increment and promotion criteria, and performance improvement plans.

32. Training and Development (HRD) Policy: Training needs identification, minimum learning hours, certification sponsorship, and service bonds for expensive programmes.

33. Health, Safety and Emergency Policy: Hazard reporting, PPE, fire drills, first aid, accident reporting, and free annual health check-ups for employees aged 40 and above in establishments covered by the OSH Code.

Grievance, Discipline and Exit

34. Grievance Redressal and Disciplinary Policy: A Grievance Redressal Committee is required under the Industrial Relations Code for establishments with 20 or more workers. Pair it with a progressive discipline process (verbal warning, written warning, suspension, termination) that includes a fair hearing.

35. Separation, Notice Period and Full and Final Settlement Policy: Covers resignation, notice periods, absconding, clearance, exit interviews and full and final settlement, which the Code on Wages requires within two working days of separation.

HR Policy of Any Company

To see how the HR policy of any company fits together, here is a typical set for a mid-sized Indian company of around 150 employees across two offices and a field sales team:

  • Working hours: Monday to Saturday for operations and field staff, Monday to Friday for corporate staff, eight hours a day with a 30-minute break.
  • Attendance: biometric for office staff, GPS check-in with geo-fencing for field staff.
  • Leave: 15 earned leaves, 8 casual leaves, 8 sick leaves, 26 weeks maternity, 5 days paternity, plus national and state holidays.
  • Probation: six months, extendable by three months.
  • Notice period: one month during probation, two months after confirmation.
  • Salary: credited by the 7th of each month, with payslips in the HRMS.
  • Statutory benefits: PF, ESI where eligible, gratuity, statutory bonus.
  • POSH: Internal Committee with an external member, annual awareness sessions.
  • Grievance: committee-based, with resolution targeted within 30 days.
  • Expenses: grade-wise limits, GPS-based conveyance, reimbursement through payroll.
  • Exit: resignation via HRMS, clearance checklist, settlement within the legal timeline.

Personnel Policies Examples

Personnel policies examples common in government bodies, PSUs and institutions:

  • Transfer policy: rotation every three to five years, with exemptions for medical reasons or spouses posted in the same city.
  • Promotion policy: based on seniority, performance ratings and departmental exams.
  • Retirement policy: superannuation at 58 or 60, with extension rules for specialised roles.
  • Leave travel concession: travel to hometown once in a block period.
  • Service conduct rules: restrictions on outside employment, political activity and gifts.

For example: "Employees will be transferred between branches after three years of service, except where medical or family grounds justify an exemption."

Company Policy

A company policy is any formal rule the organisation adopts to guide behaviour, decisions, or operations. HR policies are a subset of company policies. Others cover finance (expense approvals, procurement), IT (password and device security), operations (quality control, customer service), legal (anti-bribery, data privacy), and governance (related-party transactions, insider trading for listed companies).

Company Policy for Employees

A company policy for employees is any rule that directly affects how employees behave or what they are entitled to: the code of conduct, attendance policy, IT acceptable use, social media and travel policies. The test is simple: if an employee needs to know it to do their job correctly or claim an entitlement, it belongs in the employee-facing policy set.

Workplace Policies

Workplace policies shape the daily environment: conduct, attendance, dress code, safety, harassment, shared spaces, phone use, visitors, and remote work. Employees encounter them every day, so they should be visible, short, and easy to follow.

Company Norms

Company norms are the unwritten expectations that form culture: whether people reply to messages after 7 pm, whether cameras stay on in video calls, how formal email should be. Norms often influence behaviour more than written rules. If a norm causes problems, such as an expectation of weekend availability that leads to burnout, that is a signal to write a formal policy.

What Are the 7 Core Values of a Company?

Each company chooses its own, but seven common core values are integrity, customer focus, respect, accountability, teamwork, innovation, and excellence. Good policies make these values concrete: a gifts policy puts integrity into practice, and a grievance policy puts respect into practice.

What Are the 5 Rules of a Successful Workplace?

Treat everyone with respect, communicate openly, take ownership of your work, honour commitments and deadlines, and keep learning. Workplaces where these five rules are lived, not just written, need fewer disciplinary interventions.

List of Policies

A list of policies is easiest to manage when organised by department, so ownership is clear:

DepartmentTypical policies
HRRecruitment, leave, attendance, compensation, performance, POSH, grievance, exit
FinanceExpense, travel, procurement, credit, petty cash, delegation of financial authority
ITAcceptable use, password, BYOD, backup, access control, incident response
Legal and complianceAnti-bribery, data privacy, contract approval, record retention
OperationsQuality, safety, customer service, inventory
SalesDiscounting, credit terms, collections, field force conduct
BoardRisk management, whistleblower, related-party transactions, ESG, human rights

Examples of Organisational Policies

Organisational policies are rules that apply across an organisation to guide decisions and behaviour. Examples by sector:

  • Hospital: infection control, patient confidentiality, duty roster, on-call policy.
  • School: child protection, teacher conduct, attendance, parent communication.
  • Factory: PPE, machine safety, shift change, canteen.
  • Bank or NBFC: KYC, cash handling, field collection conduct.
  • IT company: client data security, background verification, certification sponsorship.
  • NGO: safeguarding, donor fund usage, field travel safety.

Company Guidelines

Company guidelines are softer than policies. A policy says what must be done; a guideline recommends how it should be done. The meeting guideline may recommend sharing an agenda 24 hours in advance, while the information security policy requires you to lock your screen. Guidelines give flexibility; policies give certainty.

Example of Policy

Here is a short, complete example of policy text with all the essential parts:

Conflict of Interest Policy

  • Purpose: To ensure employees act in the company's best interest and avoid situations where personal interests could influence business decisions.
  • Scope: All employees, consultants, and directors.
  • Policy: Employees must disclose any financial interest, family relationship, or outside employment that could conflict with their duties, and may not take part in decisions involving a vendor, client, or candidate with whom they have a personal relationship.
  • Procedure: Disclosures are submitted to HR through the HRMS within 15 days of joining and whenever circumstances change.
  • Consequences: Failure to disclose a known conflict may lead to disciplinary action up to termination.

List of Company Policies

A complete list of company policies, which also answers what the common and basic company policies are: code of conduct; anti-bribery and anti-corruption; conflict of interest; gifts and hospitality; whistleblower; equal opportunity; POSH; attendance, leave and working hours; remote work; travel and expense; procurement; information security; data protection; social media; health, safety and environment; drug, alcohol and smoking; dress code and uniform; company property; insider trading (listed companies); and human rights and supplier conduct.

Policies in an Organisation

Policies in an organisation work best as a hierarchy. At the top is the code of conduct, which states core values. Below it sit functional policies (HR, finance, IT). Below those sit procedures and SOPs. Each policy needs an owner, an approval authority, a version number, and a review date. When policies conflict, the higher-level policy and the law prevail.

Company Policy Examples

Some company policy examples beyond HR:

  • Gifts: "Employees may not accept gifts from vendors or clients above ₹2,000 in value. Gifts above this value must be declared to compliance."
  • Passwords: "Passwords must be at least 12 characters with letters, numbers, and symbols, and changed every 90 days."
  • Clean desk: "Confidential documents must be locked away at the end of each day."
  • Credit: "Customer credit beyond 45 days requires approval from the finance head."

As Per Company Policy

"As per company policy" means a decision follows an established written rule rather than a manager's personal preference. For example: "As per company policy, leave encashment is calculated on basic salary." The phrase is only meaningful if the policy is written, communicated, and accessible, and employees are entitled to ask to see it. Storing policies in an HR document management system with recorded acknowledgements makes "as per company policy" verifiable.

HR Policies And Procedures

A policy states what the rule is and why; a procedure explains how to follow it step by step. For every HR policy, ask: Does the employee know the exact steps? For example:

  • Policy: Employees are entitled to reimbursement for business travel.
  • Procedure: Raise a travel request in the HRMS, get manager approval, book within grade limits, upload receipts within 15 days, receive reimbursement in the next payroll.

When procedures are built into software as HR workflows, compliance becomes the default rather than a matter of memory.

Policies and Procedures

Policies and procedures serve different purposes. The policy might say "all employees must report workplace accidents within 24 hours"; the procedure lists the steps: inform the supervisor, fill in the incident form, record first aid, submit the form to the safety officer. Good procedures use numbered steps, name the responsible role, state timelines, and explain what happens if a step is missed.

Corporate Policies and Procedures

Corporate policies and procedures are set at group or board level and apply across all subsidiaries: code of conduct, anti-bribery, whistleblower, related-party transactions, insider trading, CSR, human rights, diversity and risk management. For listed companies in India, several are required under the Companies Act and SEBI regulations and must be disclosed on the website. Business units then add local procedures.

Company Policies and Procedures

Company policies and procedures cover all functions, not just HR. A procurement policy might require three quotations above a certain value; the procedure explains how to raise a requisition, collect quotes, get approval, and issue a purchase order. Documenting them protects the business when key employees leave, because the knowledge does not walk out with them.

Company Policy Procedures

Company policy procedures are the operational steps attached to a policy. They should be written in the order things happen, use active verbs ("Submit", "Approve", "Upload"), reference the exact form or system screen, and state who to contact when a situation does not fit the standard steps.

Human Rights Policy

A human rights policy is a public commitment to respect human rights across an organisation's operations and supply chain. Most corporate human rights policies align with the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights and the ILO's core conventions. In India, the National Guidelines on Responsible Business Conduct include human rights as a core principle, and the largest listed companies report on it in their Business Responsibility and Sustainability Report.

A human rights policy typically commits to:

  • Zero tolerance for child labour, forced labour, and trafficking.
  • Equal opportunity and non-discrimination.
  • Safe and healthy working conditions.
  • Fair wages and reasonable working hours.
  • Freedom of association and collective bargaining.
  • Privacy and protection of personal data.
  • Respect for local communities.
  • Accessible grievance mechanisms and whistleblower protection.
  • Due diligence on suppliers and contractors.

A typical structure is: commitment and purpose; scope (employees, contractors, suppliers, joint ventures); key issues; governance (which board committee or senior leader owns it); due diligence; and remediation when violations are found.

What Are the 5 Key Principles in the Human Rights Act?

For the UK Human Rights Act 1998, a widely used summary is the FREDA principles: fairness, respect, equality, dignity and autonomy. These five principles are also a useful lens for any company's human rights policy.

What Are the 10 Basic Human Rights?

Ten commonly cited basic human rights, drawn from the Universal Declaration of Human Rights, are the right to life; freedom from torture; freedom from slavery; equality before the law; the right to privacy; freedom of thought and religion; freedom of expression; freedom of assembly; the right to work in fair conditions; and the right to education. Lists of the "7 important human rights" usually pick from these, most often life, equality, freedom from slavery, expression, privacy, fair work, and education.

Types Of HR Policies

HR policies can be classified in several ways.

By source: originated (created by top management on its own initiative), appealed (created when managers ask for guidance on an uncovered situation), imposed (required by government, regulators or clients) and implied (unwritten norms inferred from repeated behaviour).

By description: general policies state broad philosophy ("we are an equal opportunity employer"); specific policies give detailed rules on one topic, such as overtime.

By function (the most practical): recruitment, compensation and benefits, leave and attendance, conduct and ethics, anti-harassment, performance, training, health and safety, discipline and grievance, IT and data, and separation.

By legal status: mandatory policies required by law (such as a POSH policy and Internal Committee at ten or more employees) and recommended policies that are good practice (such as social media or moonlighting policies).

What Are the Six Types of HR Policies?

A common six-way classification is: (1) employment and recruitment, (2) compensation and benefits, (3) conduct and ethics, (4) leave and attendance, (5) health and safety, and (6) performance and discipline.

What Are the Four Types of Policies?

There is no single fixed number of policy types; it depends on the classification. By source, there are four types: originated, appealed, imposed, and implied. By organisational level, there are three types: basic, general, and departmental. In public policy, a common five-way split is distributive, redistributive, regulatory, constituent and self-regulatory. By function, there are many: HR, finance, IT, operations, marketing and legal.

Types of Policies in Management

Beyond HR, the types of policies in management are usually classified by level:

  • Basic or corporate policies: set by the board and top management for mission, growth, ethics, and risk.
  • General policies: set by middle management and applied across departments, such as company-wide travel or overtime rules.
  • Departmental or minor policies: set by lower management for specific teams, such as shift rotation on a production floor.

They are also classified by function: HR, financial, production, marketing, purchasing, IT security, and legal policies.

Managerial Policies

Managerial policies are guidelines that direct how managers make decisions within their area: spending limits, hiring authority, discount approval levels, and escalation paths. Good managerial policies give freedom within clear limits, so routine decisions do not need escalation while big decisions get the right scrutiny.

Manager Policy

A manager policy (also called a delegation of authority or approval matrix) sets out what managers can approve on their own: leave limits (for example, up to five days), expense thresholds, authority to hire or extend probation, responsibility for team attendance and reviews, and rules against supervising relatives. In an HRMS, the manager policy runs as approval workflows, so each request reaches the right person automatically.

What Are the 7 Principles and 7 Types of Management?

Henri Fayol proposed 14 principles of management; a common shortlist of 7 principles is division of work, authority with responsibility, discipline, unity of command, unity of direction, equity, and order. The 7 types of management (management styles) usually listed are autocratic, democratic, laissez-faire, transformational, transactional, servant, and bureaucratic. The 7 types of planning are strategic, tactical, operational, contingency, long-term, short-term, and standing plans, which include policies and procedures themselves.

What Are the 10 Responsibilities of a Manager?

Setting goals, planning work, organising resources, hiring and developing people, delegating, communicating, monitoring performance, giving feedback, solving problems, and ensuring the team follows company policies and the law. These responsibilities apply across the 7 types of managers: top-level, middle, first-line, functional, general, and project managers, and team leaders.

HR Policies In India: Latest Updates

HR policies in India must translate a layered legal framework into everyday practice: central Labour Codes, state Shops and Establishments Acts, state Professional Tax and Labour Welfare Fund rules, the POSH Act, and data protection law. Several requirements are triggered by headcount:

  • Appointment letter: required for every employee under the OSH Code.
  • POSH policy and Internal Committee: ten or more employees.
  • PF registration: generally 20 or more employees.
  • ESI registration: generally ten or more employees in notified areas, for employees within the wage ceiling.
  • Grievance Redressal Committee: 20 or more workers under the Industrial Relations Code.
  • Standing orders: industrial establishments with 300 or more workers.
  • Maternity benefit: 26 weeks of paid leave for the first two children.
  • Gratuity: fixed-term employees eligible after one year of service.
  • Health check-ups: free annual check-ups for employees aged 40 and above in covered establishments.

Recent HR Policies

The most significant recent HR policies in India come from the Labour Codes. The four Codes on wages, industrial relations, social security and occupational safety took effect on 21 November 2025 and replaced 29 central labour laws. The Central Government has since notified final Central Rules under all four Codes, which apply where the Centre is the appropriate government, while State Rules are being rolled out state by state, so multi-state employers must track each state.

Other recent trends include generative AI usage policies, hybrid work frameworks, menstrual and wellness leave, mental health support, DPDP-aligned data policies and pay transparency.

What Are the New HR Rules?

The Labour Code changes that HR policies must now reflect, which also answer what the new rules for employees are:

  • The 50 percent wage rule: excluded allowances above half of total remuneration are added back to "wages" for PF, gratuity, and other benefits.
  • Appointment letters for all employees.
  • Annual leave eligibility after 180 days of work, down from 240.
  • Gratuity for fixed-term employees after one year.
  • Social security coverage for gig and platform workers.
  • Full and final settlement within two working days of separation.
  • Women permitted on night shifts with consent and safety measures.
  • Free annual health check-ups for employees aged 40 and above in covered establishments.

Is 50% Basic Salary Mandatory?

Not in those exact words. The Code on Wages defines "wages" so that if excluded allowances (such as HRA and conveyance) exceed 50 percent of total remuneration, the excess is added back to wages for calculating PF, gratuity, and other benefits. In practice, most companies now keep basic pay plus DA at or above half of total pay to keep calculations simple.

Is the 12-Hour Working Rule Mandatory in India?

No. Under the OSH Code, the general standard remains eight hours a day and 48 hours a week. Some states permit longer daily hours or spread-over in certain establishments, but the weekly limit and overtime rules still apply. Longer days are permitted, not mandatory, and overtime is paid at twice the ordinary rate.

New HR Policy

Introducing a new HR policy should follow a clear sequence:

  1. Explain the reason: what problem it solves or which law it implements.
  2. Consult early: involve managers and, where relevant, employee representatives.
  3. Check the law: ensure it does not reduce any statutory entitlement.
  4. Announce clearly: a short summary, an effective date and a link to the full policy.
  5. Train managers: they will answer most questions.
  6. Collect acknowledgements: record that every employee has read it.
  7. Configure systems: update leave rules, payroll components and workflows before the effective date.
  8. Review after 90 days.

A new HR policy that changes conditions of service (for example, reducing a benefit) may require advance notice to workers under the Industrial Relations Code. Take legal advice before such changes.

HR Laws and Regulations

The main HR laws and regulations in India, which also answer which HR laws are most important:

  • Code on Wages, 2019: replaced the Payment of Wages, Minimum Wages, Payment of Bonus and Equal Remuneration Acts. Covers minimum wages, timely payment, deductions, bonus, and equal pay.
  • Industrial Relations Code, 2020: replaced the Trade Unions, Industrial Employment (Standing Orders) and Industrial Disputes Acts. Covers unions, standing orders, grievance committees, lay-offs and retrenchment.
  • Code on Social Security, 2020: replaced nine laws including the EPF, ESI, Payment of Gratuity and Maternity Benefit Acts. Extends social security to gig and platform workers.
  • OSH Code, 2020: replaced thirteen laws including the Factories and Contract Labour Acts. Covers working hours, leave, safety, welfare, and contract labour.
  • POSH Act, 2013.
  • State Shops and Establishments Acts.
  • Rights of Persons with Disabilities Act, 2016 and Transgender Persons (Protection of Rights) Act, 2019.
  • Digital Personal Data Protection Act, 2023.
  • Income tax law: TDS on salaries and Form 16.
  • State Professional Tax and Labour Welfare Fund laws.
  • Apprentices Act, 1961.

If you have to pick the three most important for almost every employer, they are the Code on Wages, the Code on Social Security, and the POSH Act.

Human Resources Laws and Regulations

Human resources laws and regulations exist in every country, and multinational employers must follow the law where each employee works. In the United States, key laws include the Fair Labor Standards Act, Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the Family and Medical Leave Act. In the UK, the Employment Rights Act 1996 and the Equality Act 2010. In the EU, the GDPR and the Working Time Directive. Indian companies with staff abroad, and foreign companies hiring in India, must localise HR policies country by country.

Types of Compliance in HR

The four main types of compliance in HR are statutory, regulatory, contractual, and internal policy compliance. In practice, Indian employers manage eight areas:

  1. Statutory: laws passed by Parliament and state legislatures, such as paying minimum wages and depositing PF and ESI on time.
  2. Regulatory: rules and circulars from EPFO, ESIC, labour departments and sector regulators.
  3. Contractual: honouring appointment letters, NDAs, client contracts and settlements.
  4. Industrial relations: respecting union rights, standing orders and collective agreements.
  5. Data privacy: handling employee data under the DPDP Act and, where relevant, GDPR.
  6. Health and safety: safety standards, drills, registers and accident reporting.
  7. Internal policy compliance: ensuring employees and managers follow company policies.
  8. Multi-state and cross-border: different state rules for PT, LWF and Shops Acts, and country laws for international staff.

HR Policies In HRM

In Human Resource Management, HR policies bridge strategy and daily action. HRM has functions such as planning, recruitment, training, compensation, performance, and employee relations. Policies set the rules for each function so that hundreds of managers making thousands of decisions all move in the same direction. This is also the importance of HRM itself: it ensures the organisation has capable, motivated people, treats them fairly, complies with the law and builds a culture that supports performance.

What Are the 7 Main Principles of HR?

Lists vary, but seven commonly cited principles are: fairness and equity, legal compliance, transparency, respect for individuals, merit-based decisions, employee development, and alignment of people practices with business goals. Every HR policy should be traceable back to at least one of these.

What Are the 7 Pillars of HR?

There is no single official list. A widely used version is: talent acquisition, learning and development, performance management, compensation and benefits, employee relations, HR compliance, and HR analytics and technology.

What Are the 7 C's and 4 C's of HR?

The 7 C's of HR vary by author; one common set is communication, collaboration, culture, compensation, career development, compliance, and commitment. Treat it as a memory aid rather than a formal standard.

The 4 C's of HR policies come from the Harvard model of HRM: commitment (employees' loyalty and motivation), competence (employees' skills), congruence (alignment between employee and organisational goals) and cost-effectiveness (achieving outcomes efficiently). Good HR policies should strengthen all four.

What Are the 5 P's in HR?

Randall Schuler's 5-P model links HR to business strategy through philosophy (values about people), policies (guidelines), programmes (coordinated HR efforts), practices (actual behaviours), and processes (how HR activities are carried out).

What Are the 7 Functions and Roles of HR?

The seven core functions of HR, which are also described as the 7 HR basics, major HR activities, or HR processes, are:

  1. Human resource planning
  2. Recruitment and selection
  3. Onboarding and training
  4. Performance management
  5. Compensation and benefits
  6. Employee relations and engagement
  7. Compliance, health, and safety

HR's 7 roles in delivering these are strategic partner, advisor to managers, employee advocate, administrator, compliance guardian, change agent, and culture builder.

What Are the Four Types of HR and 4 HR Strategies?

HR work is often grouped into four types: talent acquisition, talent management and development, compensation and benefits, and employee relations and compliance. Dave Ulrich's model instead describes four HR roles: strategic partner, administrative expert, employee champion, and change agent. The 4 HR strategies most often cited are talent acquisition, learning and development, performance and reward, and retention and engagement.

What Are the 8 Main Objectives of HRM?

(1) Help the organisation reach its goals, (2) acquire the right talent, (3) develop employees' skills, (4) motivate and retain employees, (5) ensure fair compensation, (6) maintain good employee relations, (7) ensure legal compliance and safety, and (8) promote ethical and socially responsible practices.

Human Resource Management Policies and Practices

Human resource management policies and practices together shape employee experience. Practices such as structured onboarding, regular one-on-ones, transparent increment discussions, and recognition bring policies to life. Policies set the floor (what must happen); practices build the culture (how it feels to work here).

HR Policies and Practices

HR policies and HR practices are different. A policy is the written rule; a practice is what actually happens. A company may promise quarterly feedback in policy, but if managers only hold an annual review, practice does not match policy. Strong organisations measure the gap through audits, surveys and HR metrics, then either enforce the policy or rewrite it.

Human Resource Management Policies

Human resource management policies are typically grouped by function: acquisition (planning, recruitment, onboarding), development (training, appraisal, promotion), compensation (salary, increments, bonus, benefits), integration (engagement, communication, grievance, discipline), maintenance (health, safety, welfare) and separation (resignation, retirement, settlement).

Personnel Policies in HRM

Personnel policies in HRM act as standing instructions for line managers. A manager deciding on an attendance regularisation request need not call HR if the policy already states the limit. This is their practical value: they delegate decision-making safely.

Personnel Policies in Human Resource Management

Personnel policies in human resource management also matter for audits and disputes. When an employee challenges a decision, the employer's first defence is the written policy, proof the employee was informed, and proof it was applied consistently. This is why digital acknowledgement and audit trails are now standard.

Personnel Policy in HRM

A single personnel policy in HRM must be specific enough to apply and general enough to cover future cases. "Employees may work from home when needed" is too vague. "Employees in hybrid-eligible roles may work remotely up to two days a week with manager approval in the HRMS" is usable.

Rules And Regulations For Employees

Rules and regulations for employees are usually communicated at joining and acknowledged in writing. The most effective organisations keep rules short, explain the reason behind each, and apply them consistently. Rules that apply only to junior staff while seniors ignore them quickly lose credibility.

HR Rules and Regulations

HR rules and regulations combine two layers: internal rules set by the company and external regulations set by law. The internal rule might say "notice period is 60 days"; the Code on Wages says final dues must be paid within two working days of separation. Company rules can be more generous than the law but never less protective. Where they conflict, the law wins.

Company Rules for Employees

Company rules for employees should be shared during onboarding, stored where employees can find them, and updated whenever the business or the law changes. A digital handbook in the HRMS, with each acknowledgement recorded, is the most reliable format.

HR Rules

HR rules (or HR policy rules) are the precise, enforceable requirements inside policies: report by 9:30 am, apply for leave three days in advance, submit claims within 30 days, wear your ID card. Precise rules ("15-minute grace period, three times a month") prevent disputes; vague ones ("be on time") create them.

Rules and Regulations for Office Staff

Rules and regulations for office staff, which also serve as basic office rules for employees: keep workstations clean and lock screens when away; keep calls quiet in open areas; book meeting rooms and vacate on time; clean up after using the pantry; register visitors; switch off lights and equipment when leaving; follow evacuation instructions; and never remove company assets without authorisation.

What Are 10 Safety Rules and Regulations?

  1. Know emergency exits and assembly points.
  2. Report hazards immediately.
  3. Wear required protective equipment.
  4. Keep walkways and exits clear.
  5. Use machines and tools only if trained.
  6. Never work under the influence of alcohol or drugs.
  7. Report every injury, however minor.
  8. Follow electrical safety rules.
  9. Lift heavy objects correctly.
  10. Take part in fire and evacuation drills.

The 7 basic safety rules usually condense these into: stay alert, wear protective gear, follow instructions, keep your area clean, report hazards, use tools correctly and know emergency procedures.

HR Rules for Employees

Common HR rules for employees: mark attendance accurately (proxy attendance is prohibited); apply for planned leave in advance; inform your manager before your shift if unwell; keep personal and bank details updated; follow the code of conduct and POSH policy; protect company data and devices; and serve the notice period and complete clearance on resignation.

HR Rules and Regulations for Employees

HR rules and regulations for employees in India typically include:

  • Working hours: eight hours a day and 48 a week as the general standard, with overtime at twice the ordinary rate.
  • Weekly off: at least one day of rest per week.
  • Leave: annual leave eligibility after 180 days of work, at one day per 20 days worked.
  • Wages: paid on time with only permissible deductions.
  • Appointment letter for every employee.
  • Statutory benefits: PF, ESI and gratuity as applicable.
  • Safety and dignity: a harassment-free workplace with an Internal Committee where required.

Example of Rules and Regulations for Employees

Here is an example of rules and regulations for employees (also a ready set of work rules) that you can adapt:

  1. Office hours are 9:30 am to 6:30 pm, Monday to Friday, with a one-hour lunch break.
  2. Attendance must be marked through the biometric device or mobile app on arrival and departure.
  3. Three late arrivals beyond the 15-minute grace period in a month count as half a day of leave.
  4. Planned leave must be applied for three working days in advance; sick leave over two days needs a medical certificate.
  5. ID cards must be worn visibly on the premises.
  6. Smoking is only in designated areas; alcohol and drugs are prohibited.
  7. Company laptops and data may not be shared outside the company.
  8. Personal social media posts must not disclose confidential information.
  9. Harassment of any kind will lead to disciplinary action, including termination.
  10. The notice period in the appointment letter must be served on resignation.

Employment Policy

The term employment policy has two meanings. At the company level, it governs the terms of employment: appointment letters, probation, employee categories, notice periods, and termination. At the national level, it refers to government strategy for job creation and worker protection, such as skill development programmes and rural employment guarantees like MGNREGA. For a business, the first meaning applies.

What Are the 7 Types of Employees?

Full-time permanent, part-time, fixed-term, temporary, contract (engaged through a contractor), interns and apprentices, and freelancers or gig workers. Your employment policy should define each category and the benefits it carries, since the Labour Codes treat them differently (for example, fixed-term employees now get gratuity after one year).

Work Policy

A work policy governs how work itself is done: working hours, shift timings, breaks, remote and hybrid arrangements, overtime, equipment use and communication norms. The most common example is the hybrid work policy. To write a work policy, define eligibility, core hours, how availability is tracked, who pays for internet and equipment, and what security rules apply outside the office.

What Are the Different Types of Working Conditions?

Working conditions fall into four types: physical (space, lighting, ventilation, safety), time-based (hours, shifts, breaks, overtime), contractual (pay, leave, job security), and psychosocial (workload, respect, freedom from harassment). A good work policy addresses all four.

Personnel Policies

Personnel policies is the older term for HR policies, from when HR departments were called "personnel departments". It is still common in government, PSUs, NGOs and textbooks, and covers hiring, service conditions, pay, promotion, transfer, leave, discipline and retirement.

Define Personnel Policy

To define personnel policy: a predetermined guideline established by management to direct decisions on the employment, development, compensation, welfare, and separation of staff. "Predetermined" matters: it is decided before the situation arises.

Personnel Policy Definition

A commonly cited personnel policy definition describes it as a statement of intention that commits management to general and specific courses of action in dealing with personnel. In practice, it always includes three ideas: a statement of intent, a guide to action, and uniform application to the workforce it covers.

Staff Policy

Staff policy is an everyday term for the rules that apply to employees. Schools, hospitals, hotels, and NGOs often use it for their handbook. Some organisations keep separate staff policies for teaching and non-teaching staff, or clinical and non-clinical staff, because their working conditions differ.

HRD Policy

HRD stands for Human Resource Development. An HRD policy focuses on growing employees' capabilities through training, mentoring, leadership programmes, career paths and succession planning. It typically states how training needs are identified, minimum learning hours, whether training counts as paid working time, how certifications are sponsored, and whether a service bond applies after expensive programmes.

The HRD process runs in five stages: identify training and development needs, design programmes, deliver training, evaluate results, and link outcomes to career growth, performance and succession. In India, the term "HRD scheme" can also refer to government programmes, such as the Department of Health Research's Human Resource Development for Health Research scheme, and "MHRD" was the former name of the Ministry of Education. (In IT administration, "HRD policy" can also mean a Home Realm Discovery sign-in rule in Microsoft Entra ID, which is unrelated to HR.)

HR Policy Manual

An HR policy manual is the complete, authoritative collection of HR policies, maintained by HR and approved by management. It is more detailed than an employee handbook and often includes procedures, forms, and approval matrices. A well-maintained manual has a version-controlled master copy, an owner for each policy, and a change log.

HR Policy Template

Use this HR policy template as the starting point for any policy:

SectionWhat to write
HeaderPolicy name, policy ID, version, effective date, last reviewed, policy owner, approved by
1. PurposeWhy this policy exists and what it aims to achieve
2. ScopeWho it applies to (grades, locations, contract staff, interns)
3. DefinitionsKey terms used in the policy
4. Policy statementThe rules and entitlements, stated clearly
5. ProcedureStep-by-step process with responsible roles and timelines
6. ResponsibilitiesEmployee, reporting manager, HR, finance
7. ExceptionsWho can approve exceptions and how they are recorded
8. Non-complianceConsequences of violating the policy
9. Related policies and lawsLinked policies and applicable laws
10. ReviewReview frequency and next review date
11. AcknowledgementEmployee confirmation of having read the policy

HR tip: Choose command words carefully. "Must" and "shall" create an obligation. "Should" is a recommendation. "May" grants permission. Mixing them up is one of the most common causes of policy disputes.

HR Policy Format

A professional HR policy format follows a few conventions: a consistent header with ID, version, dates, and owner; numbered sections so clauses can be cited ("as per clause 4.2"); plain language with short sentences; gender-neutral wording; defined terms explained up front; tables for entitlements that vary by grade; and a version history at the end.

Human Resource Policy Manual

A human resource policy manual typically includes: introduction (vision, mission, values); purpose and scope; employment (categories, recruitment, appointment, probation, confirmation); working hours and attendance; leave and holidays; compensation, benefits and statutory contributions; performance and promotions; learning and development; code of conduct; POSH and anti-discrimination; health, safety and welfare; IT, data and confidentiality; travel and expenses; grievance redressal; discipline; separation and settlement; and annexures with forms, approval matrix and contacts.

HR Handbook

An HR handbook (or employee handbook) is the employee-friendly version of the policy manual: shorter, conversational and focused on what employees need to know. Many companies include a welcome note, culture and values, a "first 30 days" guide, key contacts, and FAQs. Where the handbook and manual differ, the manual usually prevails, so update both together.

HR Manual Format

A clear HR manual format: cover page with title, version, and date; approval page; table of contents; one chapter per policy area using the standard template; glossary of terms; annexures with forms and checklists; version history; and an employee acknowledgement page. Store it digitally with search and access controls, because printed binders go out of date the moment a policy changes.

How to Prepare an HR Policy Manual?

  1. List every policy you need, starting with the legally essential ones.
  2. Draft each policy in the standard template above.
  3. Group policies into chapters by lifecycle stage.
  4. Add the cover, approval page, contents, glossary, and annexures.
  5. Get legal review and management approval.
  6. Publish digitally and collect employee acknowledgements.
  7. Schedule an annual review, plus an immediate review whenever the law changes.

Importance Of HR Policies

The importance of HR policies shows up most clearly when they are missing. Without a written leave policy, every leave request becomes a negotiation. Without a POSH policy, a harassment complaint has no process and the company is legally exposed. Without an expense policy, reimbursements become arguments. Investors, enterprise clients and auditors increasingly ask to see HR policies during due diligence.

Objectives of HR Policies

The main objectives of HR policies are: consistency across teams and locations; fairness in hiring, pay, promotion and discipline; legal compliance; clarity about expectations and entitlements; alignment of people decisions with business goals; efficiency so managers decide quickly; and employee wellbeing, protecting health, safety, dignity and work-life balance.

Advantages of HR Policies

Key advantages of HR policies, and of written policies in general: faster decisions, fewer disputes, lower legal risk, smoother onboarding, easier delegation, predictable costs (because entitlements like leave encashment are defined) and a stronger employer brand.

Benefits of HR Policies

The benefits of HR policies reach every stakeholder. Employees get transparency and protection; managers get clear guidance; HR gets fewer repetitive queries; leadership gets lower risk and better data. When policies are configured in an HRMS, the benefits multiply: leave rules apply automatically, payroll follows attendance, and approvals follow defined workflows.

Recruitment Policy In HRM

The recruitment policy in HRM sits at the start of the employee lifecycle and influences everything after it. A weak recruitment policy leads to poor hires, then performance problems, attrition, and rehiring costs. It also shapes diversity: companies that rely only on referrals tend to hire people similar to their current workforce, while broader sourcing widens the talent pool.

Elaborate the Recruitment Policy and Procedures

To elaborate the recruitment policy and procedures, here is the full process from start to finish:

  1. Manpower planning: department heads forecast hiring needs during annual planning, linked to targets and budgets.
  2. Requisition: the hiring manager raises a manpower requisition (new or replacement position, with justification); HR and finance approve.
  3. Job description: responsibilities, skills, experience, location, and salary band, in inclusive language.
  4. Internal posting first: the role is posted internally for a set period, such as seven days.
  5. External sourcing: careers page, job portals, LinkedIn, referrals, and, if needed, empanelled agencies.
  6. Screening: applications checked against mandatory criteria, followed by a phone or video screen.
  7. Assessment: aptitude, technical or work-sample tests as relevant.
  8. Interviews: structured interviews with standard scoring; interviewers declare any relationship with candidates.
  9. Selection decision: the panel compares scores and recommends; approvals follow the delegation matrix.
  10. Background and reference checks: with the candidate's consent.
  11. Offer: designation, CTC breakup, location, joining date, probation and notice terms; out-of-band offers need extra approval.
  12. Pre-joining: documents uploaded and policies acknowledged digitally.
  13. Joining and induction: appointment letter, system access, assets, and an induction on policies, culture, and safety.
  14. Probation review: confirmation or extension before probation ends.

HR Recruitment Policy

An HR recruitment policy document, which sets out the company's recruitment policies, should cover: purpose and scope; manpower requisition and approval; sourcing channels; selection steps; equal opportunity; background verification; offer approvals; referral bonus rules; re-hiring and cooling-off periods for rejected candidates or former employees; and secure handling of candidate data.

What Are the 7 Steps of Recruitment?

The 7 steps of the recruitment process are: (1) identify the hiring need, (2) write the job description, (3) source candidates, (4) screen applications, (5) assess and interview, (6) select and make the offer, and (7) onboard. A shorter 5-step version is planning, sourcing, screening, selection, and onboarding.

What Are the 4 R's of Recruitment and the 80/20 Rule?

The 4 R's of recruitment vary by source; a common version is recruit, retain, reward, and recognise, and another is reach, relate, recruit, and retain. The 80/20 rule in recruiting applies the Pareto principle: roughly 80 percent of good hires often come from about 20 percent of sourcing channels. Track source-of-hire data and put more effort into the channels that actually deliver.

Staffing Policy

A staffing policy decides how positions are filled and how the workforce is structured: the mix of permanent and contract staff, promoting from within first, use of interns and apprentices, and staffing agencies. Multinational companies often describe their staffing policy through four approaches: ethnocentric (key roles filled from the parent country), polycentric (locals run local subsidiaries), geocentric (best person regardless of nationality), and regiocentric (talent moves within a region).

What Are the 7 Steps of the Staffing Process?

The 7 steps, which are also the 7 important functions of staffing, are: manpower planning, recruitment, selection, placement and orientation, training and development, performance appraisal, and promotion, transfer and compensation. To write a staffing plan, review business goals, analyse current headcount, forecast needs, identify gaps, decide whether to hire, train, redeploy, or outsource, and set a timeline and budget. Example of staffing: a retail chain opening ten new stores plans 80 hires, promotes experienced associates to store managers, recruits new associates locally, and trains everyone before launch.

HR In IT Company

The role of HR in an IT company is to manage a workforce that is highly skilled, mobile, and in demand. Key focus areas:

  • Technical recruitment through coding platforms and referrals.
  • Hybrid and remote work policies.
  • Background verification, often required by clients.
  • Confidentiality and IP through NDAs and IP assignment.
  • Moonlighting rules.
  • Night shifts for global clients, with safety and consent requirements for women.
  • Learning and certification sponsorship, sometimes with service bonds.
  • Compensation benchmarking, variable pay and ESOPs.
  • Retention through career paths, internal mobility and engagement programmes.
  • Data privacy under the DPDP Act.
  • Project timesheets that feed costing and client billing.

HR Guidelines

HR guidelines are recommended practices that help people apply policies well. An interviewing guideline may recommend structured questions and diverse panels; a feedback guideline may recommend regular one-on-ones. Guidelines give flexibility where strict rules would be counterproductive.

HR Guidance

HR guidance is the advice HR gives managers and employees, and the external sources HR relies on. In India, useful sources include the Ministry of Labour and Employment's Labour Code FAQs, EPFO and ESIC portals, state labour department notifications, professional HR bodies and employment lawyers. For terminations, restructuring or harassment investigations, always take qualified legal advice.

Human Resources Guide

A complete internal human resources guide for managers covers how to hire, onboard, approve leave and attendance, run performance reviews, give feedback, handle complaints, manage discipline, support an employee in distress and handle resignations. Pairing such a guide with an HRMS that handles the mechanics (approvals, records, calculations) lets managers focus on the human side of management.

HR Policy Implementation

HR policy implementation is where most policies succeed or fail. A brilliant policy nobody reads changes nothing. Effective implementation needs multi-channel communication (email, town halls, intranet, HRMS); manager briefings before employees start asking; digital acknowledgement by every employee; system configuration so leave, attendance, salary, and approval rules match the policy from day one; consistent enforcement across levels; a feedback channel; and periodic audits comparing practice with policy.

HR Policy Training

HR policy training has two audiences. HR professionals need training on drafting and updating policies: labour law, policy versus procedure, plain-language writing, and version control. Managers and employees need training on what policies say and how to follow them, with deeper training for managers on leave approvals, reviews, discipline, POSH complaints and grievances. POSH awareness for all employees and specific training for Internal Committee members is a legal expectation. Short, scenario-based, repeated modules work far better than a single long lecture.

Formulation of HR Policies

The formulation of HR policies follows a structured process, which also answers what the 7 steps of creating a policy are:

  1. Identify the need: a legal change, recurring dispute, growth, audit finding or employee feedback.
  2. Research and consult: study the law, benchmark industry practice, review past cases, and speak with managers, finance, legal, and affected employees.
  3. Draft: use the standard template with clear, gender-neutral language.
  4. Review: legal review against central and state law, plus stakeholder feedback.
  5. Approve: by the authority named in the delegation matrix.
  6. Communicate and implement: publish, train managers, collect acknowledgements, and configure systems.
  7. Monitor and review: at least every one to two years, or whenever the law changes.

How to Write an HR Policy

To write an HR policy, or any company or work policy, keep these practical rules in mind:

  • Start with the problem, not the rule. State in one sentence what the policy fixes.
  • Write for the employee. Use "you" where helpful and avoid legal jargon.
  • Be specific. Use numbers, timelines, and named roles ("within three working days", "reporting manager").
  • Give an example for any rule that could be interpreted two ways.
  • Align overlapping policies so the POSH policy, code of conduct, and disciplinary policy do not contradict each other.
  • Leave room for judgement by naming who can approve exceptions.
  • End with consequences and a review date.

How QkrHR Turns HR Policies Into Everyday Practice

Writing good policies is half the job. The other half is applying them correctly, every time, across every location. QkrHR, the HRMS from Qkrbiz used by more than 85,000 users across India, turns your policies into configured rules:

  • Leave and attendance: unlimited leave types, accrual, carry-forward and encashment rules, configurable leave policies and holiday calendars, biometric and web punch, plus geo-tagged mobile punch, geofencing and regularisation on the Foundation plan.
  • Payroll and statutory compliance: attendance-to-payroll sync, arrears, full and final settlement, PF, ESI, Professional Tax for all 18 states, TDS with Form 16, challans, returns and statutory registers.
  • Workflow automation: approval workflows with conditional routing, with unlimited approval stages and delegation during absence on the Foundation plan.
  • Documents and letters: employee records with documents and letters, plus digital letter acknowledgements on the Foundation plan.
  • Employee self-service: ESS portal and mobile app for Android and iOS, with payslips on mobile.
  • Expenses and loans: expense claims with policy limits, mileage and per diem, salary advances and loan EMIs auto-deducted from payroll, on the Foundation plan.
  • Field force tracking: QkrVisit is a separate product that connects with any plan.
  • Security: role-based access, audit logs, and encrypted data.

The Essential plan costs ₹3,000 per month for up to 50 users (₹40 per additional user per month), the Foundation plan costs ₹5,000 per month for up to 50 users (₹80 per additional user per month), and the Growth plan is custom-priced (see QkrHR pricing). To see your own policies configured in QkrHR, book a demo or call +91 7428174445.

Conclusion

HR policies are not paperwork; they are the operating rules of your organisation. Well-written policies protect employees, guide managers, keep the company compliant, and make growth manageable. With the Labour Codes now in force and state rules still rolling out, this is the right time to review your HR policy manual, update salary structures and leave rules, and make sure practice matches policy.

The fastest way to make policies stick is to build them into the systems people use every day. When leave rules, attendance rules, payroll components, and approval workflows run inside QkrHR HRMS Software, your policies stop being documents and start being how work actually happens.

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Frequently Asked Questions

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A policy is a deliberate, written statement of intent that guides decisions and actions toward consistent outcomes.

Indian employers must follow the four Labour Codes, the POSH Act, state Shops and Establishments Acts, PF and ESI rules, state Professional Tax and Labour Welfare Fund laws, and the DPDP Act, and build internal HR policies that comply with them.

Reliability, integrity, a positive attitude, good communication and a willingness to learn.

The CEO is higher. HR heads, such as the CHRO or HR Director, usually report to the CEO and sit on the leadership team.

It can be. HR handles conflicts, terminations, compliance deadlines and month-end payroll pressure. Clear policies and good HR software remove much of the repetitive load, leaving more time for people-focused work.

Personnel means the people employed in an organisation. The "personnel department" was the older name for the HR department.

"All purchases above ₹1 lakh require three quotations and approval from the finance head." Other examples include credit, refund, gifts and procurement policies.

Under the Companies Act, 2013, a private limited company needs at least two directors (one resident in India) and two shareholders, can have up to 200 members, must hold its first board meeting within 30 days of incorporation and at least four a year, needs a statutory audit, and must file annual returns and financial statements with the Registrar of Companies. On the HR side, it must register for PF and ESI when thresholds are met, set up a POSH Internal Committee at ten employees and issue appointment letters.

It varies widely. Entry-level HR roles are moderately paid, while senior HR leaders and specialists in compensation, HR analytics and HR technology can earn very well. Industry, company size and city make a big difference.

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