Clearly defined HR policies remain essential to any organization as they provide clarity and structure. With India's four Labour Codes now effective from November 21, 2025, understanding and updating HR policies has become more critical than ever.
Various types of HR policies help establish a clear understanding of expectations and standards. Research shows that only around 50% of employees strongly agree that they know what's expected of them at work—policies help bring that clarity.
Further, policies ensure the firm complies with the new Labour Codes and provides a framework so leaders can make consistent decisions and ensure people are treated equitably.
What Are HR Policies?
HR policies are formal guidelines and standardized sets of rules that businesses put in place to better manage their workforce. They ensure consistency by outlining organizational obligations, disciplinary procedures, employee expectations, and acceptable behavioral standards.
Why Do Companies Need HR Policies?
HR policies help lay down a proper code of conduct for a business. This ensures they're protected from legal claims, maintain a safe and secure working environment, and foster a culture of inclusion, fairness, and trust.
With the implementation of India's Labour Codes in November 2025, companies must now ensure their policies align with new statutory requirements including mandatory appointment letters, wage structure reforms, and enhanced worker protections.
Overall, it sets a foundation for the smooth functioning of an organization. Therefore, businesses should set up appropriate HR policies for their employees. To ensure that employment laws are properly followed, companies should provide an employee handbook outlining all important HR policies.
Essential HR Policies
Keep up with the modern workplace and employee needs with these essential policies
10 Various Types Of HR Policies
Let's discuss the list of HR policies and procedures in India for 2026.
1. Code of Conduct
What is it?
The code of conduct contains an organization's mission, vision, and ethics. It's important to set the standards of behavior you expect from your employees to promote and maintain a positive working environment.
Policies help outline unacceptable behavior and educate employees on business values. This helps manage inappropriate conduct, if and when it arises.
Purpose
Employee conduct policy states standards of professional and personal conduct that employees must strive to uphold at all times. It helps employees maintain an environment that's conducive, safe, enjoyable, positive, productive, and free from discrimination and harassment.
A few examples of what falls under the code of conduct
- Attendance and punctuality: Employee attendance must be punctual and regular. If they need an absence, they must inform their manager in advance.
- Dress and appearance: The employees project a particular image to the clients. Everyone must ensure their appearance is appropriate, clean, and neat at work.
- Personal behavior: Employees must act in the best interest of the company and undertake their duties in an ethical, conscientious, responsible, and professional manner.
- Use of facilities and equipment: When an employee uses company property, goods, intellectual property, or services, they must use it carefully.
- Digital communication: With remote and hybrid work being common in 2026, clarify expectations around professional communication on digital platforms including video calls, messaging apps, and email.
2. Flexible Work Policy
What is it?
Especially after the pandemic, many businesses offer a flexible working culture. This means employees may work from home and sometimes even during the work hours they choose.
Workplace Culture Playbook
The 7-step roadmap to successfully build an irresistible workplace
Purpose
Since employees work away from the office at least part-time, you need a strategy that includes clear rules and frameworks to manage hybrid and remote work. This sets explicit instructions and clear expectations—the key to managing employees and performance.
The policy captures everything from when, where, and how employees work. A remote work checklist is a handy way to practically implement a flexible work policy.
Key things to keep in mind when implementing this policy in 2026:
- Define your hybrid model clearly (e.g., 2-3 days in office, 2-3 days remote) with team-specific flexibility where needed
- Agree upon specific hours and measurable outcomes before you begin the arrangement
- Remote workers must maintain regular communication with team members via the preferred method of communication within your organization
- Set up systems to measure and monitor outcomes (not activity) of hybrid and remote workers
- Ensure remote workers receive the same opportunities to grow and develop as office-based staff
- Actively promote a sense of belonging regardless of work location
- Provide home setup support (equipment, internet reimbursement) where appropriate
- Set up regular team activities or social gatherings to build camaraderie and boost engagement
- Clarify expectations around response times and availability during core working hours
3. Benefits Policy
What is it?
Employees are an organization's biggest asset. Gone are the days they are happy with only salary or pension. They want benefits like group health insurance, paid leaves, vacation time, ESOPs, and more. So from the get-go, setting up your benefits policy is extremely helpful.
Purpose
When an employee knows what benefits the workplace offers, they can plan accordingly. With a policy in place, your workforce knows exactly what's available, how to access it, and other aspects related to benefits.
Mandatory benefits in India under the Labour Codes (effective November 2025):
- Appointment letters: Now mandatory for all employees
- Gratuity: Fixed-term employees now eligible after just one year (instead of five years for permanent employees)
- Health checkups: Free annual health checkups mandatory for all employees above age 40
- Timely wage payment: Salaries must be paid by the 7th of every month
- Maternity leave: 26 weeks for employees
- Sick leaves and casual leaves
- Annual leave
- National and festival holidays
Attractive additional benefits employees seek in 2026:
- Flexible working arrangements (hybrid/remote options)
- Comprehensive wellness programs including mental health support
- Group health insurance with ₹10 lakh+ coverage (medical inflation in India runs at 14% annually)
- 24/7 medical advisor access and unlimited doctor consultations
- Preventive health programs and annual health screenings
- Professional development and upskilling opportunities (especially AI training—43% of Indian employees now seek this)
- Additional paid leave beyond statutory requirements
The importance of health and wellness benefits in 2026
80% of Indian workers reported mental health challenges in the past year, with corporate burnout rates reaching 78%. Health and wellness benefits are no longer nice-to-haves—they're essential.
According to ASSOCHAM's research, every ₹1 spent on employee wellness generates ₹133 in savings on absenteeism costs and ₹6.62 in reduced healthcare costs. The Harvard Business Review found that employers who invest in comprehensive group health insurance along with wellness initiatives saw nearly a 3 to 1 return on investment.
Loop's Group Health Insurance
A partner like Loop ensures that your employees get comprehensive protection through both group health insurance and health benefits—while helping you stay compliant with the new Labour Code requirements.
We offer preventive care features like an in-house team of doctors available 24/7 to support your employees and their families. Account managers provide quick resolutions for any needs. Our customer support team is available around the clock. And our team of claim specialists offers 24X7 documentation and support.
Some features that make life easier and healthier:
- 24/7 medical advisor support with response within minutes
- Unlimited free doctor consultations across 12+ specialties
- Easy lab test and health checkup booking (Loop achieves 80% utilization vs 35% industry standard)
- Digital prescription and medicine ordering
- Seamless claims support with dedicated advisors
- HR dashboard for compliance tracking
- Self-service enrollment portal
- High-engagement wellness activities
You have everything in one place to supercharge your workforce!
4. Anti-Harassment, Anti-Bullying, and Non-Discrimination Policy
What is it?
An employer can be held legally responsible for acts of discrimination, bullying, or harassment in their business. The new Labour Codes emphasize equal treatment and non-discrimination across all worker categories.
To minimize this risk, your business must show you've taken all reasonable steps to prevent bullying, discrimination, or harassment based on race, religion, age, national origin, language, sex, sexual orientation, gender identity, or mental or physical disability.
This is nearly impossible without a comprehensive written policy.
Purpose
A clear policy communicates what constitutes bullying, harassment, discrimination, and other inappropriate behavior at work. You ensure your workplace remains safe for all employees—including gig workers, fixed-term employees, and platform workers now covered under the Labour Codes.
5. Leave Policy
What is it?
A leave policy lays down rules and regulations regarding the different leaves your workforce can avail, such as maternity leave, sick leave, vacation leave, mental health days, and more.
Purpose
A leave policy gives employees a clear picture of their entitlements. Besides the number of days, it specifies details like eligibility, approval process, and encashment rules.
Leave types in 2026
Apart from public holidays, companies typically provide:
- Casual leave: Short-term planned or unplanned absences
- Sick leave: For illness or medical appointments
- Earned leave or privileged leave: Accumulated leave for vacation
- Maternity leave: 26 weeks (statutory requirement)
- Paternity leave: Though not statutorily mandated, many companies offer 5-15 days
- Mental health days: Increasingly common as separate from sick leave
- Compensatory off: For working beyond regular hours or on holidays
- Leave without pay: When paid leave is exhausted
- Bereavement leave: For family emergencies
- Sabbatical or extended leave: For personal development (optional benefit)
With work-life balance now the top priority for Indian employees (surpassing pay for the first time), generous and flexible leave policies have become a competitive advantage for talent attraction and retention.
6. Sexual Harassment Policy
What is it?
The Prevention of Sexual Harassment (POSH) Act, 2013 remains a critical compliance requirement. Companies must inform and educate employees about sexual harassment at work and maintain clear guidelines about inappropriate, unwelcome, or unwanted sexual actions or comments.
Purpose
Companies must establish proper HR policies and effectively communicate them to all employees to ensure safety. To establish an organizational culture that provides a fair and safe working environment for all workers, HR officials should arrange workshops, sensitization programs, and encourage open communication.
Creating a safe work environment isn't just legally required—it's a moral necessity.
What POSH compliance requires in 2026:
- Internal Complaints Committee (ICC): Mandatory for organizations with 10+ employees
- Regular training: Annual sensitization workshops for all employees
- Clear reporting mechanisms: Multiple channels for filing complaints
- Confidential investigation process: Defined timelines and procedures
- Annual disclosure: Companies must now disclose complaint numbers, resolution rates, cases pending over 90 days, and workforce gender composition in Board Reports (per Supreme Court directives)
- Penalties: Up to ₹3,00,000 for non-compliance with disclosure requirements
7. Safety and Health Policy
What is it?
One of the most important HR policies is the one surrounding health and safety. The Occupational Safety, Health and Working Conditions Code 2020 (effective November 2025) significantly strengthened workplace safety requirements.
It shows your organization is committed to the health, safety, and welfare of its employees; minimizing the risk of work-related injuries and ill health, and complying with applicable health and safety legal requirements.
Read to know more: Why Is Health And Safety Important In The Workplace?
Purpose
A policy clearly describes emergency and safety protocols and what the employer intends to do regarding commitment and support for health and safety in the workplace.
The policy must outline exactly what employees are expected to do in the case of all normal emergencies and be specific about who is responsible for maintaining health and safety.
What the 2026 Safety and Health policy must include:
- Mandatory health checkups: Free annual health checkups for all employees above age 40 (statutory requirement under Labour Codes)
- Emergency protocols: Clear procedures for different types of emergencies
- Workplace hazards: Specific safety measures for your industry (chemicals, machinery, ergonomics, etc.)
- Responsibility assignment: Who maintains health and safety compliance
- Reporting mechanisms: How employees report safety concerns
- Mental health support: Resources for psychological wellbeing
- Ergonomic workspace guidelines: Especially important for hybrid workers
- COVID and infectious disease protocols: Procedures for health crises
The new Labour Codes mandate appointment letters for all employees, which should clearly outline safety responsibilities and health checkup entitlements.
8. Grievance Policy
What is it?
A grievance is any employment-related behavior or decision that affects an employee unjustly or unfairly. It can involve issues like bullying, harassment, discrimination, unfair treatment, or policy violations.
Purpose
When an employee has an issue, they must know who to turn to. The grievance policy clearly outlines the steps to follow when filing a complaint and what the company must do upon receiving one. This ensures grievances are addressed confidentially and quickly.
With the new Labour Codes emphasizing worker welfare, having a robust grievance mechanism protects both employees and employers.
Key elements for 2026:
- Multiple reporting channels (email, phone, in-person, anonymous hotline)
- Clear timelines for response and resolution
- Protection against retaliation
- Confidentiality assurances
- Escalation procedures if initial resolution isn't satisfactory
- Documentation requirements
- Regular review of grievance trends to identify systemic issues
Allowing employees to voice concerns, listening genuinely, and acting on them increases motivation and engagement around the workplace.
9. Social Media Policy
What is it?
Whether your business is on social media or not, your employees certainly are. They often list your organization's name on public profiles. How your workforce interacts and posts on social media can impact your company's reputation.
Purpose
The social media policy outlines what form of communication is appropriate for an employee when representing your company on public platforms. This protects your company's reputation, both online and offline.
What to include in 2026:
- Guidelines for mentioning the company on personal profiles
- Confidentiality expectations regarding company information, clients, and colleagues
- Professional conduct standards when identifying as an employee
- Clarification about personal views vs company positions
- Guidance on sharing company content or responding to company posts
- Consequences for policy violations
You cannot limit what employees say on personal time, but you can request they not use your business name alongside certain types of information or comments. In case rules are broken, include the disciplinary action you will take.
10. Disciplinary Policy
What is it?
During the lifecycle of a business, situations may arise where employees don't meet expectations. It could be a disagreement with team members, missing deadlines, or policy violations. You must know what action to take.
Purpose
A disciplinary policy helps identify incidents that violate company policy and establishes a standard procedure to handle such instances fairly and consistently across the organization.
What behavior constitutes disciplinary action in 2026?
- Discrimination or harassment of any kind
- Dishonesty or fraudulent activity
- Chronic attendance issues without valid reasons
- Inappropriate behavior toward clients or coworkers
- Dress code violations (if applicable)
- Illegal behavior
- Misconduct or insubordination
- Poor performance after appropriate support and warnings
- Violation of company policies (confidentiality, social media, safety, etc.)
- Falsification of documents (especially critical under new Labour Codes requiring formal documentation)
Progressive discipline approach:
- Verbal warning (documented)
- Written warning
- Performance improvement plan with clear expectations and timeline
- Final written warning
- Termination (following proper procedures under Industrial Relations Code 2020)
The new Labour Codes require full and final settlement within 2 working days of employee departure, so your disciplinary and exit processes must be clear and efficient.
Conclusion
Human resources professionals play a significant role in developing and formalizing company policies and procedures that comply with India's new Labour Codes effective from November 2025.
HR professionals typically have deeper knowledge of HR laws, ethical practices, and are positioned to hold people accountable. Thus, managers often work to develop policies and procedures with HR department input.
By no means is this list exhaustive. Based on factors like your employee needs, company size, industry, and the new statutory requirements under the Labour Codes, you should customize these policies to meet your specific needs.
Critical action items for 2026:
- Ensure all employees have mandatory appointment letters
- Implement free annual health checkups for employees 40+
- Review salary structures to ensure basic pay is at least 50% of CTC
- Update gratuity policies (fixed-term employees eligible after one year)
- Strengthen POSH compliance and disclosure requirements
- Align flexible work policies with current employee expectations
Don't forget to review, revise, and update policies regularly to ensure they continue to comply with government mandates and the needs of your organization.
We hope you find this list of HR policies in India useful for 2026. Check out our other resources for more insightful information, including our comprehensive guide on India's New Labour Codes: Complete Compliance Checklist for 2026.
