Employee handbook, SOPs

Category: Payroll & HR Compliance. From ₹7,999. Typical timeline: 7–14 days.

Overview

HR policy and handbook drafting formalises the rules governing employment — leave, code of conduct, POSH compliance, disciplinary procedure, and termination — into a single reference document that protects the business legally and sets clear expectations for employees from day one. A well-drafted handbook is not just good practice; provisions like the POSH policy are a statutory requirement for any organisation with ten or more employees under the Sexual Harassment of Women at Workplace Act.

Who needs it

• Startups formalising HR processes for the first time as they scale beyond a handful of employees
• Companies with 10 or more employees needing a statutory POSH policy and Internal Committee
• Businesses standardising leave, code of conduct, and disciplinary procedures across a growing workforce
• Organisations preparing for due diligence, certification or investor review that examines HR governance

Eligibility

• Any registered business employing staff, from early-stage startups to established companies
• Organisations employing 10 or more persons, statutorily required to have a POSH policy and Internal Committee
• Companies undergoing growth or restructuring that need updated, legally sound HR documentation

Documents required

• Existing HR policies or handbook, if any, for review and update
• Organisational structure and employee headcount details
• State-specific Shops and Establishments Act registration, relevant for leave and working hour provisions
• Details of any existing Internal Committee constituted under the POSH Act
• Industry-specific compliance requirements the business wants reflected in the handbook

Process

1. Requirement gathering — Understand the business's structure, culture and any existing policies to be retained or revised.
2. Policy drafting — Draft core policies — leave, code of conduct, POSH, disciplinary procedure, termination and grievance redressal.
3. Legal compliance check — Ensure the handbook aligns with applicable central and state labour law requirements, including the POSH Act.
4. Internal review — Circulate the draft handbook for management review and incorporate feedback.
5. Rollout and Internal Committee setup — Finalise the handbook, roll it out to employees, and constitute the Internal Committee where required under POSH.

Government fees

• Government fee: Not applicable — HR policy drafting is a private advisory service with no statutory fee

Professional fee

Professional fee starts at ₹7,999 for a complete HR policy handbook covering core policies and POSH compliance documentation, scaling with the number of policies and level of customisation required.

Timeline

A complete HR handbook is typically drafted and finalised within 7-14 working days of receiving requirement details, depending on the number of rounds of internal review.

Deliverables

• Complete employee handbook covering leave, conduct, disciplinary and grievance policies
• POSH policy document and Internal Committee constitution support
• Termination and full-and-final settlement policy guidelines
• Employee acknowledgment format for handbook rollout

Frequently asked questions

Is a POSH policy mandatory for small businesses too?

Yes — any organisation employing ten or more employees, regardless of sector or size, is required to have a POSH policy and constitute an Internal Committee under the Sexual Harassment of Women at Workplace Act, 2013.

Do HR policies need to be updated for every state we operate in?

Certain provisions, particularly around leave entitlement and working hours, are governed by the Shops and Establishments Act of each state, so the handbook should reflect state-specific variations where the business operates across multiple states.

Can an existing handbook just be reviewed rather than rewritten?

Yes — many engagements start with a gap assessment of the existing handbook against current legal requirements, followed by targeted updates rather than a full rewrite.

Common mistakes

• Operating without a POSH policy or Internal Committee despite crossing the ten-employee threshold
• Copying a generic template handbook that does not reflect the business's actual state-specific obligations
• Not obtaining signed employee acknowledgment of the handbook, weakening its enforceability in disputes
• Leaving the handbook static for years without updating it as labour laws or company practices change

Penalties for non-compliance

• Penalty up to ₹50,000 under the POSH Act for failure to constitute an Internal Committee or comply with its provisions, with higher penalties or licence cancellation for repeat default
• Weaker legal standing in wrongful termination or disciplinary disputes without documented, communicated policies
• Reputational and compliance risk during investor due diligence or statutory inspection if HR governance is found lacking

Legal references

• Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — mandatory POSH policy and Internal Committee for establishments with 10 or more employees
• Industrial Employment (Standing Orders) Act, 1946 — model standing orders on conduct and discipline for larger establishments
• Relevant state Shops and Establishments Act — leave, working hours and termination provisions
• Companies Act, 2013 — Board report disclosure requirement on POSH complaints for applicable companies