Every successful company walks on the path of good ethics and practices. These practices allow them to avoid conflicts and continue their operations smoothly. That is why all organizations, irrespective of their size, have human resources policies in place. HR policies are the guidelines that govern how the company's employees are managed. The policies ensure the organization is following the local government rules and laws. It also provides guidelines for employees to manage their conduct and work in the organization. HR policies constantly undergo upgrades and modifications according to the regulations. Companies in India often face problems due to poorly set HR policies that land them in legal disputes and cause trouble complying with local government laws. Therefore every company must have carefully drafted HR policies to ensure the company follows all the compliances and does not break any law.
Importance of HR Policies
HR policies are in place to protect the benefits of employees and the organization benefits. Here are some significant points that highlight why HR policies are essential.
- It ensures the organization complies with all the critical HR laws and guidelines and isn't causing injustice to any employee.
- It ensures that the organization's employees' requirements are acknowledged and met.
- It ensures that suitable benefits are offered to employees for their work; it assists in resolving employee problems, complaints, and grievances; and it guarantees that proper training and development opportunities are provided to employees to fulfil the firm's needs.
- It protects employees against any individual malpractice within the organization.
- They must ensure eligible employees receive their allotted holidays and paid vacations on time.
- It is seen as critical since it aids in the maintenance of organizational discipline.
- It guarantees that employees are fairly compensated.
List of HR Policies
HR policies are the documentations that guide business owners and HR heads to make better decisions when it comes to government compliance, employee benefits, employee conflicts and organizational goals. Here are some critical HR policies that every company must have.
It is critical to keep accurate paperwork on all employees that work for the organization. The employee contract serves as a catch-all for various HR policies and agreements.
According to India's employment rules, accurate documentation of employees is required to ensure effective navigation through the complex and diversified employment system. As a result, having correct and up-to-date records demonstrating the employee's compliance with the firm will benefit them in the long run and spare them from future legal problems.
Code of Conduct
The Code of Conduct consists of the company's policies, which include its vision, goal, and ethics. This is designed to enlighten employees on workplace behaviour policies and to preserve workplace discipline. The code of conduct is one type of HR policy that contains the company's rules that employees must follow. Dress code, equal rights for all, electronic usage policy, conflict of interest, media policy, proper work environment, and so on are all part of the policy. It also includes the regulations and punishments for employees who break or violate the code of conduct.
Every employer should have a solid leave policy that outlines how many vacation days they are entitled to each year. The policy should include an appropriate division of the leaves into paid, ill, and casual leaves, among other things. It must also include information about public holidays. HR policy in India should also include provisions for unpaid leave, as well as explicit rules on salary reductions for late arrivals and half days.
Employee wages Policy
Employee payroll is an integral part of employee management. The HR department's job is to handle the company's employee payroll properly. This includes paying competitive compensation to employees according to government policies.
Various legislation passed by the government covers employee wages. The most notable is the Minimum Wage Act of 1948. This act establishes a specific wage as the minimum wage for both skilled and unskilled workers. The act requires employees to earn a 'Basic' income to cover their living expenditures.
Employee Provident Fund Policy
Every employer is required to establish a provident fund account for each of its employees. The Employees Provident Fund Act of 1947 ensures employees' income security after they retire. This is more like a security fund providing numerous employee advantages, such as housing, medical insurance, and a retirement pension.
TeamNest also provides services like Payroll processing and Compliance, and we even set up HR Policies for our clients.
Employment Termination Policy
Employees in India may only be terminated following the terms and circumstances of their employment contract. Companies should keep in mind, however, that when laying off or dismissing employees, all employers must follow federal and state labour regulations - the terms of firm contracts cannot transcend these legal statutes. Finally, in India, termination without cause is illegal. Termination durations differ depending on the function and length of employment.
Sexual Harassment Policy
The Indian government has prioritized women's safety in the workplace in its legislative efforts. All firms with more than ten workers must establish an internal complaints committee in Compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act of 2013. All complaints should be aggressively pursued, documented, and resolved as soon as possible. To protect employee safety, businesses must develop suitable HR policies and ensure they are effectively conveyed to all employees.
A communication policy helps establish and maintain open, ethical and transparent communication among employees at all levels of the company. This policy incorporates your company's policies for e-mail, mobile phone usage, telephones, notice boards, notes, and other communications. It must also provide the necessary tools to update existing technology and communication links regularly.
All these policies indicate one thing- Every company must carefully draft HR policies and adhere to them to avoid legal disputes and injustice to employees. That is why many companies trust Teamnest to draft their HR policies and compliance management to ensure every policy is drafted with utmost attention to detail and complies with all the government employment laws and guidelines. Save your company from legal disputes. Talk with Teamnest's HR Policy Expert @ +91 913-786-6322 or email at email@example.com.