HR Policy & Labour Compliance

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HR Policy & Labour Compliance

Employment contracts, HR manual, POSH policy, standing orders, and complete labour law compliance — protecting your business and your employees.

As businesses grow and hire their first employees, establishing proper HR policies and employment contracts becomes critical. A poorly drafted employment contract, missing HR policies, or non-compliance with mandatory labour law provisions can result in costly disputes, labour court proceedings, and reputational damage. AAA Global LLP assists businesses in building their HR compliance foundation — from the first employment contract to a comprehensive HR manual that is aligned with applicable labour laws.

Employment Contracts

Every employee — from interns to senior executives — should have a properly drafted employment contract that clearly defines:

Designation and scope of work
Compensation and benefits — CTC, salary components, variable pay
Probation period and confirmation process
Confidentiality and non-disclosure obligations
Non-compete and non-solicitation clauses (where legally enforceable)
Intellectual property ownership— inventions and work product created during employment
Termination provisions — notice period, grounds for summary dismissal

HR Manual & Policies

A comprehensive HR manual sets clear expectations for employees, reduces disputes, and demonstrates organizational maturity to investors and clients. We draft manuals covering:

Leave policy Annual leave, sick leave, casual leave, maternity/paternity leave — aligned with applicable labour laws.
Code of conduct — Expected professional behaviour, discipline procedures, and consequences for violations.
POSH policy (Prevention of Sexual Harassment) — Mandatory for all establishments with 10+ employees — ICC formation, complaint procedure, and annual reporting.
Performance review process — Appraisal cycles, KPI framework, and increment/promotion criteria.
IT & data security policy — policy Acceptable use of company devices, data handling, and confidentiality requirements.

POSH Compliance — Mandatory for 10+ Employees

The Sexual Harassment of Women at Workplace Act, 2013 (POSH Act) requires all establishments with 10 or more employees to constitute an Internal Complaints Committee (ICC) and implement a written anti-harassment policy. Non-compliance attracts penalties of up to Rs. 50,000 and cancellation of business licence for repeat offences.

ICC formation — at least 50% women members, external expert member, presiding officer
POSH policy drafting — complaint procedure, inquiry process, confidentiality provisions
Annual report— filed with District Officer by January 31 each year
Training— mandatory awareness training for all employees

Frequently Asked Questions

01 Are non-compete clauses enforceable in India?

Non-compete clauses that restrict an employee from working after leaving the company are generally not enforceable in India under Section 27 of the Indian Contract Act (restraint of trade is void). However, clauses prohibiting use of confidential information and non-solicitation of clients and employees are generally enforceable. We draft balanced clauses that maximize protection within what courts will uphold.

02 Is a POSH policy mandatory for companies with fewer than 10 employees?

Establishments with fewer than 10 employees are not required to form an ICC but must comply with POSH by accessing the Local Complaints Committee (LCC) established by the District Officer. We advise on the appropriate compliance approach for small businesses.

03 What happens if a company does not have a standing order?

Establishments with 100+ workmen (or 50+ in some states) must have certified standing orders under the Industrial Employment (Standing Orders) Act. Non-compliance attracts fines and complications in disciplinary proceedings. We prepare model standing orders for certification.

5.0 - 28 Google Reviews