The HR policies must have in India in 2020

1. Employment Contracts

Previously India does not legally require organizations to make employment contracts for local employees, but now it is mentioned to make that contract. I t can be used as an umbrella which will cover all employee-related agreements and contracts.

2. Code of Conduct

This policies of a company contains the vision, ethics and the mission of the organization. It includes the rules related to  work that the employees of that company must follow it.

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

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

3. Employee Wages

Managing employee payroll is an essential part of an HR department’s job; however, ensuring that employee salaries are competitive in the market and compliant with government policies is also necessary.

In India,Minimum wage act,1948 is there. It fixes the minimum wages for a skilled and unskilled labourer should receive. It provides employees to earn the ‘basic cost of living’.

Then, the Payment of Wages Act, 1936 ensures that the employee receives the  monthly payment on time and without unnecessary deductions.

Therefore, it may be tempting to only focus on competitive market rates. However, it is vital to pay heed to the compliances required for every employee’s wages.

4. Gratuity Policy

It is a way of companies for appreciating an emoployee who have given the services five years or more than this.

A company pays gratuity to an employee when an employee resigns, retires or is laid off. It is an essential business practice and to keep h employees happy. Afterthat, it is also a legal compulsion to pay employees gratuity under the gratuity act, 1972.

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

5. Employee Provident Fund

The employees’ provident fund act, 1947 gives security to the employees  during their retirement. It is a social security fund that gives employees benefits like retirement pension, medical insurance, housing care and more.

It is now compulsory for an  organizations with more than ten employees have to keep a Provident fund compulsorily.

However, you should have a provident fund policy in your organization to make things easier.

6. Leave Policy

The leave policy has been created to give employees a clear picture of the number of leaves an employee can take annually. Furthermore, it should also mention public holidays. Moreover, the leave policy must also note the percentage of salary cut that an employee will see in  half-days or unpaid leaves.

Legally, India has  only three national holidays where no organization is allowed to be open without permission. However, organizations like factories, hospitals, travel agencies, etc., are exempt from this and can work for 24 hours a day. However, under the Factories Act, 1948, they must be paid for those days and paid for overtime.

Furthermore, every organization should have an annual list of leaves that the employees will be getting.

7. Sexual Harassment in the Workplace Policy

Every organization must take extra steps to make their workplace a safe environment for women to work in. It isn’t just  a moral obligation but it is legally required also. In India, laws have  been updated to keep workplace safe for  women  at priority.

The 5-year-old sexual harassment act, 2013, has taken the Indian business world by a storm. The action was well praise and due to this few companies close down. Furthermore, the act is not just for the employees and interns of an organization but  for also any woman visiting the company or a woman customer. Every organization must include a sexual harassment policy to be able to address all complaints actively and safely.

According to the act, every company with more than ten employees must set up an Internal Complaints Committee. Furthermore, the steps that should  take in such cases should also be mentioned in the Policy.

8. Maternity and paternity leave Policy

Every organization employing more than ten workers must follow the maternity benefits (amendment) act, 2017.  The maternity act is  one of the most famous HR policies in India . It outlines the benefits and the leaves that a pregnant woman who has worked in an organization for 80 days is entitled.

Under this act,  Policy must include at least a 26-week paid leave to a woman for the first two children and a 12-week break subsequently.

Though there were no legislation for paternity leave in India, there is, however, the government has upheld a bill called the Paternity Benefit Bill in 2017.

 This has indeed brought in the conversation of equality for both the parents and has been applaud by the country’s citizens.

9. Termination of Employment Policy

There always comes a time when an employee has to be let go. Such situations still have heavy emotions attached to them. Therefore, it is vital to create a leave policy for your organization to guide you through allow an employee leave a company.

It will be more helpful the HR personnel carry out the standard procedures according to the federal laws. For example, it should be note that companies aren’t allow to terminate employees without notice.

For the employee to be compliant, a correct and in-depth termination policy needs to be made.

10. Adaptive Work Culture Policy

Work offices look a little different than they used to a few years ago. Today, more and more employees seek flexible work options such as work from home options or five day work in a week.

Though it is not a legally bind to adapt to the changing trend, but this is not  smart to follow the previous work trends either. Having adaptive and flexible work cultures helps employees be more productive,loyal and improves employee engagement in extra activities. This is an HR policy  that is always often overlook, however, it should be include.

11. Communications Policy

A communication policy helps  in establishing and maintain open communication for employees throughout the hierachy  of the organization. It includes  company’s policies for memos mobile phone usage,e-mails, notice boards,telephones , etc. It must place the correct mechanisms to update existing technology and communication channels frequently. 

12. Non-discrimination Policy

Discrimination can be take in ways; it can be based on prejudices of  colour,age, caste,sex,  creed or  many more. However, it is an employee’s fundamental right to be treat equally and without any discrimination.

Articles 14, 15 and 16 grant these rights to every citizen in the country. Therefore, every organization must form a company policy that does not provide permission for any kind of discrimination and inequality.