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Basic HR Policies in India

basic hr policies in india

HR policies must be regularly revised in order to remain compatible with the work environment and avoid potential legal ramifications if rules are disobeyed, while providing employees with peace of mind knowing their company has well-thought-out policies that won’t discriminate against them.


Payroll is the process of determining an employee’s total remuneration and comprises numerous tasks such as defining salary structures, gathering data on components and deductions, adapting company policies as needed and filing reports with government departments regarding tax deductions such as TDS (tax deducted at source), ESI (employees state insurance) and professional taxes.

Companies using specialized payroll software can streamline this process and reduce errors, eliminating HR teams from handling calculations, disbursement, and compliance tasks that require extensive knowledge of labour laws. In addition, using this tool makes the entire process more transparent to employees – helping increase engagement and morale, plus offering self-service requests for tax dues; an improvement over traditional payroll systems where HR teams must manually calculate and file each employee’s salaries manually.

Workplace safety

Workplace safety is a core principle of workplace management. Companies must follow certain protocols when it comes to worker protection; this may involve providing adequate training and equipment as well as creating an atmosphere free of hazards – something especially essential in high-risk industries like construction or manufacturing.

The Code of Conduct stipulates that employees should be protected from harassment in the workplace, including sexual harassment. Furthermore, companies should establish grievance committees to address complaints; and claims regarding wages, work hours and leave should be heard by labour courts or industrial tribunals.

Employees are an invaluable asset to any business. Recognizing and rewarding them for their hard work is essential; that is why creating a rewards and recognition policy is so essential; an effective policy will make your employees feel appreciated for their contributions while also helping reduce turnover rates and keeping business running efficiently.

National holidays

The National and Festival Holiday Act requires all establishments to be closed on three national holidays each year: Republic Day on January 26, Independence Day on August 15, and Gandhi Jayanti on October 2. However, state regulations vary accordingly.

If you work in India, it’s essential that you become acquainted with its holiday system and build it into your calendar and meetings. Holidays don’t just represent days off work; they are an essential component of culture.

If your manager asks you to work on a national holiday, be sure to ask why and get an explanation from them as to the reasons behind it. In some states they may even offer compensatory leave or double pay depending on state laws; but in general it would be better if possible for you not to work during these holidays as this can have serious adverse effects on both mental health and managing teams effectively.

Employment contracts

Employment contracts are an integral component of India’s hiring process. They outline an employee’s terms and conditions of their employment such as their salary, hours worked, benefits provided and performance expectations. Most agreements also contain language that states an employer reserves the right to end a contract at any time without giving reasons.

Businesses operating in India must abide by a variety of labor laws and judicial precedents in addition to employment contracts, such as laws protecting workers’ rights and mandating minimum labor standards for businesses. Furthermore, such laws prohibit discrimination against women employees and mandate safe work environments.

According to Section 27 of the Indian Contracts Act, any clause within an employment contract that prevents employees from practicing legal professions or trades can be considered null and void, but court precedent is inconsistent on this matter making it hard for businesses to create clear guidelines for employment contracts.


Wages play an essential part of employee management, and companies should ensure they comply with government wage norms. In India, wages are determined by both the National Wage Commission (NWC) and state labor boards that adhere to India’s National Labor Policy.

The National Wage Council (NWC) comprises members representing workers, employers and government sectors as well as independent persons. It can recommend to central government a floor wage – which is the minimum amount workers need to earn each week to cover basic expenses – to meet basic expenses.

Employees are eligible for additional benefits beyond wages, such as paid holidays, leaves and sick leave. Furthermore, employers must establish an Employees Provident Fund account for every employee – similar to a retirement savings plan – which will ensure their safety during employment.

Code of conduct

A code of conduct is an integral component of any company’s ethical standards, outlining guidelines for employees regarding how they should handle conflicts of interest and workplace safety issues, protecting the environment and ensuring fair competition. Employees should feel encouraged to ask any questions they have about it while complying with its rules.

The Model Code of Conduct was devised by the Election Commission with input from political parties, in consultation with their stakeholders, for voluntary compliance by candidates during elections. It prohibits politicians from making offensive or divisive speeches against particular communities or restricts using religious places of worship as electoral propaganda tools.

Each individual must use discretion and good judgment when determining their course of action, seeking legal advice if in doubt to ensure compliance and avoid disciplinary measures.

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