HR Policies & Employee Handbooks
HR policies are the written rules an employer applies to its workforce: leave, conduct, discipline, harassment, data, expenses and exit. An employee handbook collects them in one place. Some policies are required by Indian law; the rest are there so that people are treated consistently and decisions can be defended.
The legal requirements come from several statutes, including the law on sexual harassment at the workplace, the Maternity Benefit Act, 1961, the Rights of Persons with Disabilities Act, 2016, the four Labour Codes and the state’s Shops and Establishments law. Which apply depends on the number of employees and the state.
When you need it
When the team reaches ten employees
Several legal duties begin at ten employees, including a policy and a committee on sexual harassment.
When policies exist only by habit
Unwritten rules on leave, notice and expenses are applied differently by each manager, which is where disputes begin.
When a disciplinary issue arises
Action against an employee is much easier to defend if the rule and the procedure were written down first.
When the law changes
Policies written under the old labour laws need review against the Labour Codes and the data protection law.
Before due diligence
Investors and enterprise customers ask for the policy set, particularly on harassment, data and anti-bribery.
How the process works
Five stages. Timings are typical, not promised.
- 1
Review what exists
About a weekCollect the current policies, contracts and practices, and note the size of the workforce, the locations and the kinds of workers, including contract staff and interns.
Documents
- Existing policies and handbook
- Template employment contracts
- Headcount by location
- 2
List what the law requires
Alongside the reviewIdentify the policies and notices that are mandatory for this employer, and the committees or officers each one needs.
- 3
Draft the policies
Two to four weeks, depending on the numberWrite each policy in plain language: who it applies to, the rule, the procedure and who decides. The set usually covers conduct, leave, working hours, harassment, grievances, discipline, equal opportunity, data and IT use, expenses and exit.
- 4
Assemble the handbook
About a weekBring the policies together with an introduction, a statement that the handbook can be updated and an acknowledgement for employees to sign.
- 5
Issue and keep current
On issue, then yearlyCirculate the handbook, collect acknowledgements, brief managers on the procedures, and review the set once a year or when the law changes.
Common questions
It depends on size and state. Commonly required are a policy on the prevention of sexual harassment (ten or more employees), an equal opportunity policy under the disabilities law, written information on maternity benefits, and the leave and working-hour rules of the state’s Shops and Establishments law.
No. Specific policies are required, not a handbook as such. A handbook is the practical way to make sure every employee has received them and to prove it.
Only if the contract says so. Most employers state that policies apply to the employee and may be changed, while keeping contractual terms, such as pay and notice, in the agreement itself.
The Maternity Benefit Act, 1961 gives eligible women up to 26 weeks of paid leave, requires a crèche facility in establishments with fifty or more employees, and requires the employer to tell every woman in writing, when she is appointed, of the benefits available.
Section 21 of the Rights of Persons with Disabilities Act, 2016 requires every establishment to have a policy setting out the facilities and measures it provides for persons with disabilities. Larger establishments register it and name a liaison officer.
Yes, if employees are told clearly in a policy, the monitoring is for a proper purpose and it is proportionate. Under the data protection law, processing for the purposes of employment is a recognised ground, but the employer still has to keep the data secure.
The employee should be told the allegation in writing, given a chance to respond and heard by someone unbiased before a decision is made. For serious misconduct by a worker, a formal domestic inquiry is expected.
At least once a year, and whenever the law, the headcount or the way people work changes. Crossing a threshold, such as ten, twenty or fifty employees, usually brings new duties.
Related
To discuss HR policies, write to info@ireniclegal.com or call +91 96547 47331. Written by Adv. Kanika Marwaha Bindal; last updated 7 October 2026.