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HR Policy Manual

An HR Policy Manual is the single master document that sets out every people policy of a company — hiring, working hours, leave, pay, conduct, POSH, grievance and exit. HR drafts it, management approves it, and every employee receives and acknowledges it at joining and after each revision.

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[Company Logo][Company Name]

HR POLICY MANUAL

Company:
[Company Name]
Document No.:
[Reference Number]
Version:
[Version Number]
Effective Date:
[Date]
Policy Owner:
[HR Name], Human Resources
Approved By:
[Authorised Signatory]

Chapter 1: Introduction

1.1 Purpose: This manual sets out the human resource policies, procedures and practices of [Company Name] so that employees are treated fairly and consistently and the company complies with applicable labour laws.
1.2 Scope: It applies to all employees on the company's rolls at all offices, plants and sites, including [Work Location]. Consultants, trainees and contract workers are covered where expressly stated.
1.3 Precedence: Where this manual conflicts with any law, certified standing order or individual appointment letter, the law and then the more favourable term for the employee will apply.

Chapter 2: Definitions

  • Company: [Company Name] and its branches.
  • Employee: any person employed on the company's rolls on a permanent, probationary or fixed-term basis.
  • Reporting Manager: the person to whom an employee reports as per the organisation chart.
  • HR: the Human Resources department or the person designated to perform the HR function.
  • Wages / Basic Salary: as defined in the employee's appointment letter and applicable law.

Chapter 3: Employment

  1. Recruitment is based on merit against an approved manpower requisition. Relatives of existing employees must be declared.
  2. Every new employee receives an appointment letter stating designation, CTC, probation, notice period and place of work.
  3. Probation is [Number] months, extendable once by up to [Number] months with written reasons. Confirmation is communicated in writing.
  4. Joining documents: PAN, Aadhaar (last 4 digits / masked copy), educational and experience certificates, bank details and UAN if any.

Chapter 4: Working Hours, Attendance and Leave

  1. Normal working hours are [Start Time] to [End Time], [Number] days a week, with a [Number]-minute meal break. Weekly off: [Day].
  2. Attendance is recorded through [biometric / HRMS app / register]. Late arrival beyond [Number] minutes on more than [Number] occasions a month may be treated as half-day leave.
  3. Overtime is paid as per applicable law where the employee is eligible and the overtime was pre-approved.
  4. Leave entitlements per calendar year: Earned/Privilege Leave [Number] days, Casual Leave [Number] days, Sick Leave [Number] days, plus maternity and other statutory leave as per law.
  5. Holidays: [Number] paid holidays including national holidays, published in the annual holiday list.

Chapter 5: Compensation and Benefits

  1. Salary is paid by bank transfer on or before the [Number] day of the following month, with a payslip showing all earnings and deductions.
  2. Eligible employees are covered under EPF (12% of basic + DA each by employer and employee, subject to wage ceiling rules) and ESI (where wages are up to ₹21,000 per month).
  3. Gratuity is payable as per law after 5 years of continuous service, at 15 days' wages for each completed year.
  4. Salary reviews are carried out [annually] based on performance and business results. Increments are not automatic.
  5. Other benefits such as group health insurance of ₹[Amount], meal or travel allowances are as per the benefits annexure.

Chapter 6: Code of Conduct

Employees must act honestly, treat colleagues and customers with respect, protect confidential information and company assets, avoid conflicts of interest and follow safety rules. Gifts above ₹[Amount] from business partners must be declared. Use of alcohol or drugs at work, violence, fraud and misuse of IT systems are serious misconduct.

Chapter 7: Prevention of Sexual Harassment (POSH)

The company has zero tolerance for sexual harassment and complies with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Committee has been constituted and its members' names are displayed at [Display Location]. Complaints may be made in writing to the Presiding Officer at [Email ID]. Retaliation against a complainant or witness is prohibited.

Chapter 8: Grievance and Discipline

  1. An employee may raise a grievance with the Reporting Manager, and if unresolved within [Number] working days, with HR or the Grievance Committee.
  2. Alleged misconduct is handled through a fair process: written charge or show-cause notice, opportunity to reply, inquiry where required, and a reasoned written decision.
  3. Penalties are proportionate and may range from warning to termination, as per the Disciplinary Policy and applicable standing orders.

Chapter 9: Separation

  1. Resignation is submitted in writing. Notice period: [Notice Period] during probation and after confirmation as per the appointment letter.
  2. The company may accept pay in lieu of notice or waive it at its discretion.
  3. Before the last working day the employee completes handover and clearance and returns all company property.
  4. Full and final settlement is processed within [Number] working days of the Last Working Day, and relieving and experience letters are issued thereafter.

Chapter 10: Related Policies, Review and Approval

Detailed policies on travel, expenses, IT use, work from home, performance and training form annexures to this manual. HR will review this manual at least once a year or when laws change. Amendments take effect only after approval by [Authorised Signatory] and communication to employees. Non-compliance with this manual may lead to disciplinary action.

Employee Acknowledgement

I acknowledge that I have received and read the HR Policy Manual of [Company Name], version [Version Number], and agree to comply with it and any amendments communicated to me.

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]
Acknowledged by
[Employee Name]
Employee ID: [Employee ID]
Date: [Date]

What this template includes

  • Document control table — shows version, owner and approval so everyone uses the current copy
  • Employment chapter — categories of employees, probation and confirmation rules
  • Attendance and leave chapter — working hours, weekly off, leave types with [Number] placeholders
  • Compensation chapter — CTC structure, salary date, PF, ESI and gratuity coverage
  • Conduct and POSH chapter — expected behaviour, Internal Committee and zero tolerance
  • Grievance and discipline chapter — a fair, documented route to raise and resolve issues
  • Separation chapter — notice period, clearance and full and final settlement
  • Employee acknowledgement — written proof that the manual was received and read

When to use it

  • A startup or SME crossing 10–20 employees that still runs HR on verbal rules and WhatsApp messages
  • Consolidating scattered policy circulars into one approved, version-controlled document
  • Preparing for a client, investor or certification audit that asks for documented HR policies
  • Re-aligning company rules after the four Labour Codes came into force from 21 November 2025
  • Opening a new branch or state office and needing one rulebook for all locations

How to customise this template

  1. 1Replace [Company Name], addresses and the policy owner, and set the effective date
  2. 2Fill every [Number] and [Amount] placeholder with your actual entitlements after management sign-off
  3. 3Delete chapters that duplicate standing orders you are already bound by, and cross-refer them instead
  4. 4Check state Shops & Establishments rules for working hours, holidays and leave for each location
  5. 5Add your own detailed policies (travel, IT, WFH) as annexures and list them in Chapter 9
  6. 6Circulate the final PDF and collect signed acknowledgements from every employee

HR tips

  • Keep the manual principle-level and put fast-changing amounts in annexures so you do not re-approve the whole manual for a small change
  • Never promise benefits you do not actually provide — the manual can be read as part of employment terms
  • Translate key chapters into the local language for shop-floor or field staff
  • Review the manual at least once a year and whenever labour rules change

This manual is a starting framework. Review it against the Labour Codes and the rules notified by your state, your Shops & Establishments registration, any certified standing orders and with a legal adviser before adoption.

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Frequently asked questions

Is an HR policy manual mandatory in India?+

There is no single law that requires a document called an HR manual, but many laws require written rules — for example, a POSH policy and Internal Committee where there are 10+ employees, and standing orders for larger industrial establishments. A manual is the practical way to keep all of these in one place.

What is the difference between an HR manual and an employee handbook?+

The HR policy manual is the detailed, approved rulebook including procedures and responsibilities. An employee handbook is usually a shorter, friendlier summary for employees. Many small companies use one document for both.

How often should the HR manual be updated?+

Review it at least annually and whenever a law, wage rule or business practice changes. Record each change in the document control table and re-collect acknowledgements for major revisions.

Do employees need to sign the HR policy manual?+

It is good practice to take a signed or digital acknowledgement that the employee has received, read and agreed to follow the manual. This helps if a policy is later disputed.

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