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Human Resources Policies (HR Policies)

Human resources form the driving force behind every successful organisation. High levels of satisfaction at work for employees leads to high levels of productivity which in turn, drives the business to greater heights. The employer is also bound to have certain expectations from the employee to ensure that the desired traits of the employee are put to optimum use in the interests of the company. It is therefore of great importance that the interests of the employees and the employer go hand in hand.



HR policies document is a list of rules that is created by a company which is then communicated to the employees. It contains all the guidelines used by the employer in hiring, training, appraising and rewarding the employees. It is one of the vital documents of a company that can serve as a rule book to avoid any misunderstanding that may arise between the employer and the employee during the course of employment. Though the creation of HR policies may not seem to be a priority task to a new employer, it is advisable that every startup should have its own HR policies, though it be a simple document. It is important since it would be advantageous to a company in the event of a legal dispute with the employee, regarding any of the rights of the employee or the employer.

It would be wise for a startup to have an HR policy in place rather than having to spend time and monetary resources on lawsuits for wanting a clear HR policy.

What Are The Contents Of An HR Policy?

A good HR policy can include details under the following heads-

Selection and Recruitment- particularly the difference between the two terms

Recruitment being the identification of human resource requirements and the actions taken to fulfil them and Selection being sorting out candidates competent to handle the work efficiently and hiring them.

Workdays and Paydays

It would be good to make it clear to the employee regarding the usual working days, expected duration of work and the dates on which salary can be expected by the employee.


The expected number of holidays for the month can be mentioned.


If the employees are required to work for more than the agreed number of hours, they shall be paid overtime charges as mentioned in the policy.

Equal Employment Opportunity Policy

It is important to declare that all employees are selected on the basis of qualification and required skill sets and not based on factors such as caste, religion, race, sex, nationality, domicile or marital status.

Annual Leaves

Number of leaves available to the employee needs to be made clear including the number of casual leaves, sick leaves, earned leaves and loss of pay as applicable.


It specifies the importance of training and mentions the training programmes to be conducted for the employees. It should mention the duration of the training programmes and availability of in house training facilities.

Performance Appraisal

Appraisal is a systematic process by which an employee’s performance in relation to the work objectives is accepted. The objectives of performance appraisal can also be mentioned.


Some organizations have tie ups with universities to encourage the employees to take up distance learning programmes to enhance their skills.


All benefits to be availed by the employees should be mentioned, for instance- medical insurance, interest free loans, car lease facility, subsidised accommodation, among others.

Compensation Planning

All details regarding different aspects of compensation, including salary increments and other allowances to contain inflation.

Recognition and Awards

It is of high importance that employees are rewarded for good performance so that they are encouraged to perform better. It is an important way of employee motivation and retention.

Freedom of Association and Collective Bargaining Policy

The company can mention the rights available to employees as to formation of unions/ associations in order to facilitate collective bargaining.

Termination Policy

The process and reasons for termination should be specified explicitly so as to avoid disputes in future.

A well made HR policy helps in establishing a desired organisational culture and helps in meeting requirements related to corporate governance. It allows for flexibility and optimum utilisation of human resources in the interests of the organisation. It provides for smoother communication between the company and the employee, promotes fair and equal treatment of employees; acts as guidelines for supervisors and create a systematic procedure for appraisals and reviews affecting the employee.

If you are a startup, it goes without saying that having a sound HR policy would be of immense benefit. If you do not have one, let it not worry you. You can use our easily customisable services which are expert-drafted, and user-friendly legal documents online. You can also opt for our Print n Deliver with Stamp paper service, through which you can get your documents printed on stamp paper by us and delivered to your address.