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HR POLICIES IN INDIA

HR POLICIES IN INDIA

 

HR POLICIES IN INDIA 

Author- Kuldeep Patel, Rani Durgavati University, Jabalpur

1.Introduction

2.Purpose

3.HR policy types

   3.1. Overarching policies

   3.2.Particular Guidelines

4.HR Policies for 2023

   4.1.Employment Agreements

   4.2. Code of Conduct

   4.3. Employee Salary

   4.5. Policy on Menstrual Leave

   4.6. Policy for Leave

   4.7. Policy on Sexual Harassment

   4.8. Policy on Maternity and Paternity Leave

   4.9. Policy for Termination and Separation

   4.10.Flexible Workplace Culture Guidelines

   4.11. Rules for Whistleblowers

   4.12. Policy against Discrimination

   4.13. Dress Code Regulation

   4.14. Policy for Probation and Confirmation

   4.15.  Policy for Work from Home

   4.16.  Policy for Grievances

   4.17.  Policy for Awards and Recognition

   4.18.  Description of Drug and Alcohol        

Policy

   4.19. Assessment and Management of Performance

  4.20. Policy for Travel

  4.21. hiring and recruitment procedures

5. Compliance HR Policies

6. Case law

  6.1. Steel Authority of India Limited v. National Union Waterfront Workers

  6.2. Hindustan Aeronautics Limited v. Workmen 

  6.3. Baidhyant Mahapatra v. State Bank of India

  6.4. Vishakha and Others v. State of Rajasthan

  6.5. Bharat Heavy Electricals Limited v. K.D. Sharma

7. The Future Trends of HR Policies in India           

8. Conclusion

 

1.Introduction

First of all we need to know what is hr policies?  And answer is  for hiring, promoting, working conditions, leaves of absence, terminations, pay, performance reviews, and many other crucial tasks is known as human resources policy

 

An organization's HR policies also outline how it will handle its assets and personnel. Together with business administrators, HR managers create these crucial documents. It is best if you are prepared to reply in case a problem happens, but it is still vital to repeat these policies beforehand.

 

PURPOSE

HR policies are the appropriate set of guidelines that assist the business in providing a safe and secure work environment for each and every employee. HR rules are primarily intended to preserve the organization's smooth operation and manage staff more effectively. Thus, the fundamental foundation of HR policies establishes a strong and useful basis upon which businesses can direct and lead their workforce towards advancement and well-being. Additionally, it shields the business from any lawsuits that may be brought by employees against it.

 

India's several HR policy types

In India, there are primarily two kinds of HR policies. Policies that are both general and particular.

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1. Overarching policies

All organisations must have general policies. These are the policies that are necessary. The company's executives typically create them.

 

2. Particular Guidelines

HR policies that are customised to a given organization's problems or issues are known as organization-specific policies. The HR department crafts them especially to fit the organisation. These policies address matters pertaining to employee benefits, recruitment, pay, and other matters.

India's Most Significant HR Policies for 2023

The HR staff is only in charge of maintaining a company's compliance with national and local laws. As a result, the firm policies ought to be produced with the greatest knowledge and expertise. The list of crucial HR rules that your Indian firm has to have is provided below. There is no specific order of importance for the list.

 

1.Employment Agreements

 

A contract outlining the terms of employment between an employer and employee is known as an employment contract. It makes it possible for both parties to comprehend the job terms as well as the laws and regulations.

Since the Indian employment rules are a complicated and varied framework, it is imperative to obtain these documents. Therefore, the organisation will be protected for a number of years to come if it has current documentation proving its compliances.

 

Before drafting the employment contracts for the company, you should review the relevant legislation, including the Contract Act of 1872, wage laws, labour laws, and employment regulations in the state where the employment is to be performed.

 

2.Code of Conduct

 

The code of conduct policy of a company contains the vision, ethics and mission of the organization and also, and It is created to build and maintain the right business environment for employees. It contains the rules of work that the employees of the company much abide by.

In India, policies such as equal right policies, electronic usage policy, dress code, enabling work environments, media policy, conflict of interest, etc are included in the code of conduct policy.

 

Furthermore, the code of conduct must include the procedure to report a breach of the code of conduct.

 

3.Employee Salary

 

An HR department's responsibilities include managing payments for employees, but they also include making sure that salaries are in line with government regulations and competitive in the market.

 

The salary of an employee is covered by a number of legislation in India. The 1948 Minimum Wage Act is one of them; it also establishes the minimum pay that both skilled and unskilled labourers must earn. Additionally, it permits workers to make the "basic cost of living."

 

In addition, the Payment of Wages Act of 1936 guarantees that the worker gets paid the correct amount each month on schedule and without any needless deductions.

 

4.Policy on Menstrual Leave

 

Menstrual leave refers to the time during which women may be able to take a paid or unpaid absence from their job if they are experiencing menstruation and are unable to work due to associated pain. This leave contributes to the effort to improve workplace accommodations for women. and women have always suffered as a result.

 

And to make matters easier, Arunachal Pradesh parliamentarian Ninong Ering introduced the Menstruation Benefits Bill 2017. The Bill would grant women working in the public and private sectors who are registered with the federal government and/or state governments the right to two days of menstruation leave per month, for a total of 24 days of leave.

 

4.Gratuity Policy

 

A gratuity amount is payable to an employee if they have completed 5 years of employment in a company. Once an employee is retired they receive their gratuity amount, this amount is mainly paid to an employee to offer them a token of appreciation for the service they have delivered to the company. Furthermore, It is also a legal compulsion to pay employees gratuity under the payment of gratuity act, 1972.

Therefore, you must have a gratuity policy in order for your organization.

 

5.Employee Savings Plan

 

Employees can also have financial security in retirement according to the Employee Provident Fund Act of 1947. This social security fund offers advantages to employees such as housing assistance, health insurance, and retirement pensions.

Remarkably, only companies with over ten employees are required to have a provident fund.

However, to make things simpler, your company ought to have a provident fund policy.

 

6.Policy for Leave

 

The purpose of the leave policy is to provide employees with an accurate understanding of how many breaks they are permitted to take on an annual basis. It should also make reference to public holidays. Additionally, the percentage of pay reduction that an employee will experience in the event of unpaid leaves or half-days must be mentioned in the leave policy.

 

Legally, no organisation is permitted to operate on India's three national holidays without authorization. Organisations that are exempt from this, such as factories, hospitals, travel agencies, etc., are permitted to operate around the clock. They should be compensated for overtime as well as for those days under the 1948 Factories Act.

 

7.Policy on Sexual Harassment

 

All organisations need to go above and above to create a safe work environment for women. It is not only required by law, but it is also morally right. Laws in India have also been amended to prioritise the safety of women in the workplace.

 

The five-year-old Sexual Harassment Act of 2013 has caused quite a stir in the Indian corporate community. The deed has received high appreciation and even caused the closure of a few businesses. Moreover, the statute safeguards female customers and visitors to the business in addition to interns and staff members. For any organisation to be able to actively handle all complaints, a sexual harassment policy is a necessary.

 

Every business with more than ten workers is required by law to establish an internal complaints committee. Moreover, the policy ought to specify the actions that ought to be done in certain situations.

 

8.Policy on Maternity and Paternity Leave

 

The Maternity Benefits (Amendment) Act, 2017 applies to any organisation with more than ten employees.  In India, the Maternity Act is arguably one of the most well-liked HR laws. It also describes the benefits and leaves to which a pregnant employee with 80 days of service at an organisation is eligible.

 

 A woman must be granted at least 26 weeks of paid leave under the statute for the first two children she has, and then 12 weeks of leave after that.

 

Although paternity leave is not legally recognised in India, the government has upheld the Paternity Benefit Bill, which was introduced in 2017.

The nation's inhabitants have praised this and it has really started a dialogue about parental equality.

 

9.Policy for Termination and Separation

 

An essential HR document that describes how to end an employee's employment, whether by resignation, retirement, or involuntary termination, is the Termination and Separation Policy. This policy covers notice periods, exit interviews, property returns, final pay, and data management to guarantee equitable, consistent, and legally compliant separations. During separations, it's critical to protect the business's interests and preserve the goodwill between the employer and the employee.

 

10.Flexible Workplace Culture Guidelines

 

The appearance of work offices has changed slightly during the past few years. A growing number of workers nowadays are looking for flexible work arrangements, like five-day work weeks or the ability to work from home.

It is not legally required to change with the times, but it is also not a good idea to adhere to the conventional work routines. Having flexible work environments increases employee engagement and productivity. Though it ought to be mentioned, this HR policy in India is frequently disregarded.

 

11.Rules for Whistleblowers

 

A whistleblower policy is a crucial part of any human resources plan. This policy offers a secure and private avenue for staff members to report misbehaviour, unethical activity, or wrongdoing without worrying about facing consequences. Integrity is valued in the workplace and ethical standards are upheld when transparency and accountability are encouraged.The organization's dedication to fostering an environment of integrity, trust, and accountability is demonstrated by this policy.

 

12.Policy against Discrimination

 

 Discrimination can be based on biases against someone based on their age, colour, sex, caste, creed, or other factors. Nonetheless, the fundamental right to fair treatment devoid of prejudice belongs to every employee.

 

All citizens of the nation are entitled to these rights under Articles 14, 15, and 16. As a result, every organisation needs to establish a policy that forbids discrimination of any type and outlines the consequences for doing so.

 

13.Dress Code Regulation

 

The purpose of the dress code policy is to improve the working atmosphere and to make work more professional. However, a decent dress code policy is a set of rules that specify what is suitable to wear to work. A well-defined policy guarantees that staff members are appropriately attired for meetings and fosters a positive work environment.

 

14.Policy for Probation and Confirmation

 

Upon onboarding, a new hire often has a probationary period. This typically lasts three months or longer. It allows the business time to assess an employee's performance and determine the terms and circumstances surrounding the employee's confirmation into the organisation. An organisation must require probationary periods for all of its employees. Consequently, this implies that the worker has an opportunity to comprehend the workplace and the volume of job of an organisation.

The rules and restrictions that the employee must abide by during the probationary period are outlined in the probation policy.

 

The policy should specify the probationary period, post-confirmation procedures, employee goals for the company, and the code of conduct in addition to performance requirements.

 

15.Policy for Work from Home

 

 An agreement between an employer and employee to allow the employee to work from home is known as a "work from home policy." It should include precise instructions, deliverables, and work schedules. Even though these are not legally protected, it will be beneficial to have a clear and unambiguous policy. It must specify exactly who is qualified for each privilege and outline the application process for employees to be able to work from home.

 

16.Policy for Grievances

 

 In India, a Grievance Redressal Committee must be established by any company with at least 20 employees, per section 9C of the Industrial Disputes Act, 1947. A policy that addresses complaints about sexual misconduct, job harassment, discriminatory choices, and other issues should be implemented and heard. In the meantime, HR regulations, such the grievance policy, are crucial to the expansion and smooth operation of a business.

 

17.Policy for Awards and Recognition

 

The purpose of the incentives and recognition policy is to provide employees with a one-time incentive or an award for exceptional work. It is designed to support motivating staff members to raise their individual and group performance standards. The overall company goal and objective are taken into consideration while building the milestones for recognition and awards. There are two types of rewards: monetary and non-monetary.

 

18.Description of Drug and Alcohol Policy

 

The drug and alcohol policy is a crucial document in any organisation. This policy lays forth expectations for how employees should behave when using drugs on company property and during working hours. The objective is to uphold a secure and efficient work environment while tackling substance-related concerns via assessments, repercussions for noncompliance with policies, and private assistance channels.

 

19.Assessment and Management of Performance

 

One of the HR policies designed to help employees understand exactly what is expected of them is the performance management policy. It offers a suitable framework that is suitable for managing an employee's performance. Additionally, this can be accomplished by putting different tools, strategies, and procedures into place.

 

Identifying, assessing, controlling, and improving an organization's human resource performance are all part of performance management. Since performance appraisals are a continuous process for assessing an employee's work, they must to be included in HR procedures every month.

 

20.Policy for Travel

 

The travel policy is developed in the event that an employee must travel for work-related business travel. Additionally, this reimburses the employee for business-approved travel expenses. The travel policy should outline the documentation needed, the process for requesting reimbursement, the authority to authorise travel, and any exclusions.

 

21.hiring and recruitment procedures

 

Any HR department must have a recruitment and hiring policy since it lays out the basic rules for workers who participate in the hiring process. These policies cover a wide range of topics, from finding and interviewing candidates to making the final hiring decisions and making sure that the hiring procedures are law-abiding and efficient. These rules are flexible and adaptive, allowing them to be tailored to each company's unique requirements while maintaining uniformity in the hiring procedure.

Compliance HR Policies

Ever-changing regulatory landscape: The Indian labor laws are constantly evolving, with new amendments and interpretations being introduced regularly. This makes it difficult for businesses to stay up-to-date on the latest requirements and ensure compliance.

 

Fragmented legal framework: India has a complex and fragmented legal framework governing HR practices. There are over 100 central and state-level labor laws that businesses must comply with, and these laws often overlap or contradict each other.

 

Lack of awareness and expertise: Many businesses, especially small and medium-sized enterprises (SMEs), lack the necessary awareness and expertise to properly interpret and implement HR policies. This can lead to unintentional non-compliance and potential legal liabilities.

 

Resource constraints:  Smaller businesses often have limited resources to dedicate to HR compliance. This can make it difficult to maintain accurate records, conduct regular audits, and provide adequate training to employees.

 

Language barriers: India has a diverse linguistic landscape, and many labor laws are written in English or Hindi, which may not be understood by all employees. This can create communication gaps and increase the risk of non-compliance.

 

To overcome these challenges, businesses in India should adopt a proactive approach to HR compliance. This includes:

 

Establishing a clear HR policy framework: Develop a comprehensive set of HR policies that are aligned with the company's values and the applicable labor laws.

 

Regularly reviewing and updating policies:Keep HR policies up-to-date with the latest legal changes and industry best practices.

 

Providing training to HR personnel and employees: Train HR staff and employees on the company's HR policies and procedures to ensure proper implementation and understanding.

 

Conducting regular audits:  Conduct regular audits of HR practices to identify and address any potential compliance gaps.

 

Seeking external expertise:  If needed, consider seeking external legal or HR consulting services to ensure compliance with complex or ambiguous regulations.

 

By implementing these measures, businesses in India can minimize the risk of HR compliance issues and create a safe, fair, and compliant workplace for all employees.

CASE LAW

here is a more comprehensive overview of notable Indian case laws related to HR policies:

 

1.Steel Authority of India Limited v. National Union Waterfront Workers (AIR 2001, Appeal (civil) 6009-6010 of 2001)

The precedent-setting decision established the rule that companies must give workers a fair chance to perform better before instituting disciplinary measures. The Indian Supreme Court ruled in this case that Steel Authority of India Limited had unfairly fired an employee without giving him a reasonable opportunity to clarify his performance issues. The Court stressed that before terminating an employee, companies must undertake a gradual disciplinary process that includes warnings and investigations.

 

2. Hindustan Aeronautics Limited v. Workmen (AIR 1975, 1975 AIR 1737, 1976 SCR (1) 231)

The legal safeguard against arbitrary termination of employment was strengthened by this case. The Supreme Court ruled that Hindustan Aeronautics Limited had wrongfully fired a number of workers without giving them a good explanation or a chance to be heard. The Court emphasised that employers must follow a fair and transparent procedure that permits employees to defend themselves and cannot fire them without cause.

 

3. Baidhyant Mahapatra v. State Bank of India (2010 (8) SCC 354)

This instance brought to light the value of prompt feedback and chances for performance enhancement. According to the Supreme Court, State Bank of India erred when it fired a worker without promptly giving him feedback on his performance concerns. The Court emphasised that in order to allow for improvement and address any underlying issues, employers must tell employees of performance inadequacies within a fair timeframe.

 

4. Vishakha and Others v. State of Rajasthan (1997 (6) SCC 241)

This historic case represented a major advancement in the fight against workplace sexual harassment. The Supreme Court outlined extensive rules that mandated workplace awareness programmes, defined sexual harassment, and described a complaint redressal procedure for the purpose of preventing and treating sexual harassment. The legal framework that India has in place to prevent sexual harassment was greatly influenced by this case.

 

5. Bharat Heavy Electricals Limited v. K.D. Sharma (2009 (11) SCC 102)

The concepts of equal opportunity and non-discrimination in HR procedures were upheld in this instance. Bharat Heavy Electricals Limited was found by the Supreme Court to have unfairly discriminated against an employee during a promotion procedure. The Court underlined that all HR decisions, including hiring, promotion, and performance reviews, must be made with equity and fairness in mind by employers.

 

Key HR policies related to employee relations in India include:

Employee relations (ER) is a critical aspect of human resource management (HRM) in India. It encompasses the policies, practices, and processes that govern the relationship between an employer and its employees. Effective ER practices are essential for creating a positive and productive work environment, fostering employee engagement, and ensuring compliance with labor laws.

 

Anti-discrimination and Equal Employment Opportunity (EEO) Policy: Discrimination on the basis of caste, religion, age, gender, or handicap is forbidden by this policy. It guarantees that every worker receives equal treatment in terms of hiring, advancement, pay, and other employment-related issues.

 

Ethical Standards and Code of Conduct:

This policy describes what is expected of workers in the workplace. It talks about things like conflict of interest, professionalism, ethics, and respect.

 

Policies for Leave and Attendance:

Guidelines for employee leave, such as sick leave, vacation leave, and personal leave, are established by these policies. They also outline the procedures for handling attendance-related concerns and attendance requirements.

 

Procedures for Employee Grievances and Redress: This policy gives workers a formal way to voice complaints or concerns regarding problems at work. It describes the steps involved in looking into and settling complaints.

 

Sexual Harassment Prevention Policy: This policy deters all forms of sexual harassment and provides guidelines for reporting and handling such situations. It seeks to give every employee a secure and courteous work environment.

 

Health and Safety Policies for Employees:By setting criteria for workplace safety, hazard prevention, and emergency procedures, these policies support the health and safety of employees. They guarantee a healthy and safe working environment for the staff.

 

Policies for IT and Data Security: Employee data and the company's IT systems are safeguarded by these policies. They specify how private data should be accessed, stored, and shared.

Give regular feedback, make goals, and deal with problems with performance.

 

Employee counselling and support:Provide employees with the tools they need to handle personal or professional challenges that might be interfering with their well-being and output.

 

Organisations in India can maintain compliance with labour laws, cultivate employee engagement, and create a happy and

productive work environment by putting effective ER policies and practises into place. This makes the company more successful and long-lasting.

 

Organisations in India can maintain compliance with labour laws, cultivate employee engagement, and create a happy and productive work environment by putting into practise effective employee relations policies and practises. This makes the company more successful and long-lasting.

The Future Trends of HR Policies in India:

HR regulations will place a greater emphasis on the productivity, well-being, and involvement of workers.HR specialists will use data to inform improved hiring, training, and performance management choices.

 

Tasks will be automated, productivity will increase, and employee experiences will be improved with the usage of new technology.

Organisations will endeavour to make the workplace more inclusive and diverse.

 

To guarantee that its staff members have the skills required for the future of work, companies will make investments in training and development.

Conclusion:

Work:

There ought to be a formal contract for each employee.Businesses have to abide with anti-discrimination regulations.

Workers are entitled to lodge complaints and grievances.Employers are required to offer a secure and hygienic workplace.

 

Salary and Perquisites:

Businesses have to pay fair wages. Certain benefits are required of employees, such as gratuities and provident funds. Women who work have the right to compensated menstruation leave.

 

Other Policies:

Companies should have a code of conduct.

Companies should have policies on sexual harassment prevention, performance management, and recruitment.

Companies may have policies on work from home, awards and recognition, and drug and alcohol.These are just the key HR policies in India. There are many other policies that companies may choose to implement, depending on their specific needs and industry..

 

Additional Policies  Businesses ought to have a code of conduct.Policies for performance management, hiring, and preventing sexual harassment should be implemented by businesses.Businesses may have rules about rewards and recognition, drug and alcohol use, and work from home.These are only the principal HR regulations in India. Various more policies are available for organisations to consider based on their particular requirements and sector.



 

Reference

 

https://www.startuphrtoolkit.com/hr-policies-in-india/

 

1.Steel Authority of India Limited v. National Union Waterfront Workers (AIR 2001, Appeal (civil) 6009-6010 of 2001

 

2. Hindustan Aeronautics Limited v. Workmen (AIR 1975, 1975 AIR 1737, 1976 SCR (1) 231)

 

3. Baidhyant Mahapatra v. State Bank of India (2010 (8) SCC 354)

 

4. Vishakha and Others v. State of Rajasthan (1997 (6) SCC 241)

 

5.Bharat Heavy Electricals Limited v. K.D. Sharma (2009 (11) SCC 102)















 

    

 

   








 

 






 

 











 

 

 

 

 






 

 









 

 

 

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