In the early days of running a business, HR policies may seem like overkill. You have a small team, you talk every day — why complicate things with documents and rules? But as your team grows, having clear HR policies isn't just smart — it's essential. It protects your people, your company, and your culture.
Here's a list of must-have HR policies every small business in India should implement.
Attendance & Leave Policy
Why it matters:
Unclear leave rules can lead to confusion, friction, and loss of productivity.
What to include:
- Types of leaves (paid, sick, casual, etc.)
- Public holiday calendar
- Leave application process
- Rules around half-days, work from home, and late arrivals
Code of Conduct
Why it matters:
A written code defines what's acceptable and what's not — helping maintain professionalism and respect.
What to include:
- Workplace behavior standards
- Dress code (if applicable)
- Use of company property
- Zero tolerance for discrimination, harassment, or misconduct
Anti-Harassment Policy
Why it matters:
It's legally mandatory and builds a safe work environment — especially important in today's hybrid and remote culture.
What to include:
- Definition of workplace harassment
- POSH (Prevention of Sexual Harassment) compliance
- Reporting and resolution mechanisms
- Names of the Internal Committee (IC)
Payroll & Compensation Policy
Why it matters:
Transparent pay structures build trust and prevent disputes.
What to include:
- Salary breakup (CTC components)
- Pay cycle (monthly/biweekly)
- Reimbursement claims process
- Bonus/increment policy
Remote Work & Hybrid Policy
Why it matters:
Work from home is no longer a trend — it's a reality. Setting boundaries and expectations is crucial.
What to include:
- Working hours and availability expectations
- Security guidelines for remote access
- Communication and performance tracking tools
Data Protection & IT Usage Policy
Why it matters:
Even small businesses handle sensitive data. Without guidelines, you risk data loss or legal issues.
What to include:
- Rules on using company systems, email, and internet
- Data confidentiality clauses
- Use of personal devices (BYOD)
- Password and access control best practices
Performance Management Policy
Why it matters:
Employees deserve clarity on how their work is evaluated and rewarded.
What to include:
- Evaluation frequency (monthly, quarterly)
- Metrics used for performance
- Feedback process
- Promotion/increment criteria
Exit Policy
Why it matters:
A professional exit process ensures knowledge transfer, proper documentation, and lasting goodwill.
What to include:
- Notice period guidelines
- Final settlement process
- Exit interview process
- Asset return checklist
Final Thoughts
You don't need a thick HR manual. A few clear, well-communicated policies can make a big difference. Tools like Zeba can help automate these policies and ensure compliance without the paperwork chaos.
Even if you're a 5-person team, start now. Good HR policies don't limit your startup — they scale it responsibly.
Vikrant Rathore
Published on June 12, 2025
