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Essential HR policy checklist for India Written for HR and founders

Essential employment policies every HR team in India should document

Last updated: 9 August 2026

This guide explains in clear language the employment policies Indian companies rely on: sexual harassment prevention, maternity benefits, working hours and leave, wages and payment, PF and ESI, gratuity, equal opportunity and appointment letters. It also shows how Offrd policy generator module helps you turn these requirements into ready to use policy and letter formats for day to day HR work.

Built for Indian law context. Offrd is currently available only in English.

Quick answer for busy HR teams

If you employ staff in India, your written HR framework should at least cover:

  • Sexual harassment prevention (PoSH)
  • Maternity leave and related benefits
  • Working hours, overtime and leave
  • Wages, payslips and payment timelines
  • PF and ESI coverage where thresholds apply
  • Gratuity for long service staff
  • Equal opportunity for persons with disabilities where required
  • Appointment letters and basic terms of work

“What HR policies are mandatory for a small company in India and how can I generate them quickly?”

Context for Indian employers

Why written employment policies matter for Indian companies

Most small Indian employers manage HR through a mix of chat, email, and informal agreements. As companies expand, handling HR informally starts producing risk and inconsistency. Employees ask where rules are written. Inspectors look for clear policies and documented agreements. Founders feel pressure when a dispute rests on who remembers what, because nothing was written down.

A simple, written set of employment policies solves many of these problems. It explains what the company expects, what staff can expect in return and how both sides can raise issues. It does not need complicated language. It just needs to reflect Indian law and match your real practice. The Offrd policy generator module removes the need to start from zero when building compliant HR documents.

Clarity for staff
New hires understand leave, timings, benefits and conduct rules from one place.
Support in disputes
If there is a complaint, a clear policy often reduces the heat and guides fair action.
Better compliance
Inspectors and advisers can see that you have thought about the legal requirements.
Easier onboarding
HR shares the same policy pack with every new hire, so the rules are written once.
This page is for general information for employers in India. For specific situations and multi state operations, you should consult a labour law adviser and then lock those decisions into templates inside Offrd policy generator module.

Quick checklist

Which employment policies does an Indian company need?

The exact set of policies you need will depend on your line of business, locations and headcount. For most office and service companies in India, the checklist below is a good starting point. If you do not have these documents yet, you can use Offrd policy generator module to create base drafts and then refine them with your legal adviser.

PoSH policy
Sexual harassment prevention policy including Internal Committee or reference to Local Committee.
Maternity and parental leave
Leave and benefits that reflect the Maternity Benefit Act and any company additions.
Working hours and leave
Office timings, overtime rules, weekly rest, paid leave, sick leave and holidays.
Wages and payment
Pay day, mode of payment, payslip norms and minimum wage compliance where relevant.
PF and ESI coverage
Employee contributions, employer share and eligibility once statutory thresholds are met.
Gratuity
Simple explanation of eligibility after continuous service and how payment is calculated.
Equal opportunity
Policy for persons with disabilities where the equal opportunity requirement applies.
Appointment letters
Offer and appointment letters that capture terms, role, place of work and notice.
Discipline and conduct
Basic rules on conduct, use of company devices, conflicts and respectful behaviour at work.

PoSH

What should a PoSH policy cover?

Do Indian companies need a written PoSH policy?

Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, employers are expected to provide a safe work environment and a clear way to raise concerns. Workplaces with ten or more staff must form an Internal Committee. Smaller teams should share a written policy, name the Local Committee and guide staff on how to reach it.

What HR teams usually cover in a PoSH policy

  • A simple explanation of what sexual harassment means in a workplace setting.
  • Scope that covers employees, interns, consultants and visitors.
  • Process for raising complaints, including timelines and contact points.
  • Reference to the Internal Committee or Local Committee as the case may be.
  • Protection against retaliation and guidance on confidentiality.
  • Training and awareness plans for staff and managers.

Offrd can store your PoSH policy and help you record that it was shared with each new hire through your onboarding letters and checklists that are generated from the same policy generator module.

Maternity

How much maternity leave does the law require?

How many weeks of maternity leave should HR state in policy?

The Maternity Benefit Act sets the legal minimum for eligible women: up to twenty six weeks of paid leave for the first two children and twelve weeks for later children, subject to the conditions in the Act. Some employers give additional support in the form of flexible work or extended unpaid leave.

What HR usually writes into the policy

  • Eligibility conditions and required service where the law expects minimum service.
  • Number of weeks of paid leave and how they can be split before and after delivery.
  • Handling of medical complications, adoption and commissioning mothers where applicable.
  • Creche support where headcount crosses the statutory threshold.
  • Coordination with other leave such as earned leave and holidays.

Offrd policy generator module helps you keep the maternity policy consistent with your leave and attendance rules, so new parents are not left guessing how different parts fit together.

Leave and timings

What working hours and leave rules apply in India?

What should a working hours and leave policy look like in India?

In India, working hours and leave are guided by the Shops and Establishments Act in each state and by the Factories Act for factories. Many states expect limits in the range of eight to nine hours a day and forty eight hours a week for standard staff along with weekly rest.

A practical policy for an Indian office usually covers:

  • Standard office timing, shift timing and grace periods.
  • Rules on late coming, overtime and compensatory off wherever applicable.
  • Earned leave, casual leave and sick leave with simple rules on accrual and usage.
  • Public holidays and optional holidays, with state wise notes where needed.
  • How leave should be applied, approved and recorded in the HR system.

With Offrd, HR can reflect these rules in appointment letters, probation confirmations, increment letters and payslips so staff see the same logic everywhere and the base wording comes from a single policy generator module.

Pay and payslips

When should wages be paid and payslips shared?

What should an Indian employer state about wages and payment?

Under wage laws, employers are expected to pay staff on time, respect minimum wage where applicable and keep basic records. A simple wage policy removes confusion about when pay will be credited, how it will be broken up and how payslips will be shared.

Key elements of a wages and payment policy

  • Standard pay date, such as the seventh working day of the following month.
  • Pay mode such as bank transfer, along with any rule about changes in bank account.
  • Broad structure of salary into fixed, allowances and variable components.
  • Payslip sharing process and timeline.
  • Link to minimum wage where the company employs staff covered by notified wage rates.

Offrd already provides a free payslip generator and simple salary structure tools, which makes it easier to keep written policy and actual practice aligned, especially when both are generated out of the same policy and document module.

Social security

When do Provident Fund and ESI rules apply to you?

What should HR say about PF and ESI contributions?

Once your establishment crosses statutory thresholds, coverage under the Employees Provident Funds and the Employees State Insurance law applies to you. A clear policy helps staff understand contributions and reassures them that the company takes these benefits seriously.

  • When PF applies, contribution percentage and voluntary higher contribution rules.
  • ESI coverage where applicable, including wage ceiling and treatment of new joinees.
  • Reference to statutory codes and the right of staff to access their PF and ESI accounts.
  • Time taken to update new staff in PF and ESI portals after joining.

Offrd can capture PF and ESI preferences inside the employee profile and reflect it in offer letters, salary revisions and exit documentation that all pull language from the same policy generator module.

Long service benefit

Who is eligible for gratuity in India?

How do Indian companies explain gratuity to employees?

Under the Payment of Gratuity Act, eligible staff who complete the prescribed period of continuous service with a covered employer receive a lump sum on exit. Many employees hear about gratuity from peers or social media and look for a simple explanation in company policy.

A straightforward gratuity policy usually covers:

  • Basic eligibility in terms of continuous service with the company.
  • A simple way to understand how gratuity is calculated.
  • When gratuity is paid, usually after clearance and documentation at exit.
  • How nominations are recorded and updated.

Offrd can store gratuity related letters and acknowledgements alongside other exit documents so your HR file is complete and all templates share the same base language from the policy generator module.

Inclusion

Do you need an equal opportunity policy for disabilities?

When should employers publish an equal opportunity policy?

The Rights of Persons with Disabilities law expects certain establishments to publish an equal opportunity policy and to take steps that support staff with disabilities. Even where a formal policy is not yet mandatory, many companies choose to express their commitment in writing.

  • Statement against discrimination in hiring, promotion and day to day treatment.
  • Reasonable accommodation for staff with disabilities wherever possible.
  • Clear way for staff to request support and share feedback.

Letters and contracts

Why does the appointment letter matter in a dispute?

Why appointment letters matter in India

In many Indian disputes, the first question is simple: “What did the appointment letter say?” A clear letter can prevent most misunderstandings on role, pay, notice and place of work.

A well drafted appointment letter for an Indian company usually states:

  • Job title, department and broad responsibilities.
  • Location, including any remote or hybrid options where applicable.
  • Salary structure and review cycle.
  • Probation period, confirmation conditions and notice periods.
  • Reference to the policies above, so the letter and policy booklet work together.

Offrd policy generator module specialises in offer letters, appointment letters, probation confirmations, increment letters, experience letters and relief documents for Indian employers. You can create these in minutes and keep the records in one place.

FAQ

What do Indian HR teams ask about employment policies?

What are the minimum HR policies a small company in India should have in writing?

As a starting point, most small companies in India benefit from written rules on sexual harassment prevention, working hours and leave, wages and payment, PF and ESI where applicable, gratuity and appointment letters. You can then add policies on discipline, data security and social media once the basics are in place. Offrd policy generator module gives you structured drafts for these topics so you are not starting from zero.

Is a PoSH policy required even if we have a very small team?

Safety and dignity at work are important regardless of headcount. The PoSH law sets specific rules once you reach ten staff, but even smaller teams should have a simple written policy, name contact points and show clearly that harassment will not be tolerated. You can use Offrd draft and adapt it to your real practice.

Where should I keep these policies so that staff can find them?

Many companies attach the main policies to the offer letter, share them again at onboarding and keep a stable link inside their HR system. Offrd can store your policy set and link it from offer, probation and increment letters so staff know where to look.

Can I simply copy a policy from another company?

It is better to treat outside policies as reference only. Each employer has its own timings, leave culture and benefits. A policy that does not match your real practice can create more confusion than it solves. Offrd templates in the policy generator module are written to be adapted to your own practice.

Does Offrd replace legal advice for Indian employment law?

Offrd helps you operationalise decisions by giving you editable templates for letters and basic policies. For grey areas, multi state operations or sensitive changes, you should still consult a labour law adviser and then translate that advice into Offrd policy generator module for consistent daily use.

How Offrd turns policy decisions into day to day HR practice

The policy generator module in Offrd offers editable drafts for core Indian employment policies, connected to your offer letters, HR letters and other documents.

Knowing which policies you need is only step one. The real work starts when HR has to reflect those policies across offer letters, confirmations, payslips and exit documents every week without errors.

Offrd is built for Indian startups and smaller employers who want professional HR documentation without a full internal legal team.

  • Central library of HR letters and basic policy documents for India.
  • Offer, appointment, probation, increment and separation letters that reflect your rules on leave, notice and benefits.
  • Free payslip generator that stays in sync with your wage policy.
  • Support from an HR documentation team that works with Indian SMEs every day.

Offrd is currently available only in English for Indian businesses. For questions on what is right for your company, speak with your legal adviser and then use Offrd policy generator module to keep the documentation part simple.

Questions people ask

What are the essential employment policies a company in India should document?

Every employer in India should at least document a sexual harassment prevention policy, maternity benefits, working hours and leave policy, wages and payment policy, provident fund and ESI coverage, gratuity policy, equal opportunity policy for persons with disabilities where required, and clear appointment letters or contracts. Many companies also add disciplinary, data security, social media and remote work policies. Offrd's policy generator module helps small businesses turn these requirements into ready to use policy and letter formats.

Do small businesses in India need a PoSH policy even with a small team?

The Sexual Harassment of Women at Workplace Act applies as soon as you have even one woman working with you. Workplaces with ten or more staff must set up an Internal Committee. Smaller teams are expected to adopt a clear zero tolerance sexual harassment policy and refer complaints to the Local Committee. It is safer for every company to publish a PoSH policy rather than wait for headcount to grow.

How many weeks of paid maternity leave are required in India?

Under the Maternity Benefit Act, eligible women are entitled to up to 26 weeks of paid maternity leave for the first two children and 12 weeks for subsequent children, subject to service conditions in the Act. Establishments with fifty or more employees must also provide a creche facility. HR teams should reflect these entitlements in their internal leave policy.

Are PF and ESI policies mandatory for all companies?

Provident Fund is generally mandatory once an establishment reaches the coverage threshold under the Employees Provident Funds and Miscellaneous Provisions Act, while ESI applies above a specified headcount and salary ceiling. Once thresholds are crossed, employers need a clear written policy that explains contribution, eligibility and process to their staff and follows the statutory rules.

Can Offrd generate employment policies and HR documents for Indian companies?

Offrd focuses on Indian startups and small and mid size employers. It provides a policy generator module with templates for offer letters, HR letters, payslips and basic policy documents that you can adapt to your company. Offrd is currently available only in English and is designed to keep day to day HR documentation simple while you consult legal advisers for complex or high risk topics.

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