Basic Rules To Make A Policy In A New Company

Hi All,

I am an HR professional who has been given a challenging and exciting opportunity to lead the HR department of a small startup company. Our company is progressing to the second stage of creating and implementing various HR policies. I would greatly appreciate all of your help in understanding if there are any essential ground rules to consider before formulating a policy.

Ground rules such as statutory requirements and basic factors need to be taken into account when drafting a policy. How should we begin (e.g., the initial steps for implementation, the necessity of creating an employee handbook, and complying with standing orders act, etc.)?

I am eagerly looking forward to all your assistance.

Regards,
Jay

Though certification of Standing Orders is mandatory for industrial establishments having a manpower of 100 employees (subject to State rules), it is always desirable to create standing orders that can serve as a base for your HR policies. As you know, a standing order is an official document that defines the legal relationship between the employee and the employer. It is expected to provide all details such as recruitment policy, transfer policy, promotion policy, steps involved in disciplinary action against an employee, procedure for laying off employees, payment of salaries and allowances, leave rules, termination of employment for continuous absence, increments, etc.

In addition to standing orders, you can have a policy for social security arrangements. This policy should outline the voluntary measures and statutory requirements, such as the Employees' Provident Fund, Employees' State Insurance, etc., that are accessible to employees. Even if you do not emphasize statutory coverages like EPF, ESI, Welfare Fund, etc., they will become applicable to your establishment once your employment strength exceeds the required minimum under the respective Act.

You may find a draft of Standing Orders that can assist you in formulating a policy on my blog by following the link below.

[Madhu.T.K: Standing Orders](http://madhu-t-k.blogspot.com/2010/01/standing-orders.html)

Regards,

Madhu.T.K