A handbook states how things work here. Keep it as a statement of policy rather than a contract, keep it consistent with the appointment letter, and keep it current — a handbook that describes a process nobody follows is worse than none, because it is the document an employee will rely on and an inspector will read.
Employee Handbook
[COMPANY NAME]
A handbook states how things work here. Keep it as a statement of policy rather than a contract, keep it consistent with the appointment letter, and keep it current — a handbook that describes a process nobody follows is worse than none, because it is the document an employee will rely on and an inspector will read.
| Item | Detail |
|---|---|
| Approved by | The Board of Directors on [DATE] |
| Effective from | [DATE] |
| Version | [NUMBER] |
| Owner | [DESIGNATION] |
| Applies to | All employees of the Company at all locations, except where a policy states otherwise |
| Review | Annually, and on any change in law |
| Available at | [LINK OR LOCATION] |
1. About This Handbook
1.1This handbook describes the Company’s policies and the standards expected of everyone who works here. It applies to all employees at all locations, except where a policy states that it applies only to particular categories or locations.
1.2This handbook is not a contract of employment and does not form part of it. Your terms of employment are in your letter of appointment. Where this handbook and your letter of appointment differ, your letter of appointment prevails, and where either differs from applicable law, the law prevails.
1.3The Company may amend this handbook from time to time. Material changes will be notified, and the current version will always be available at the location stated above.
1.4If anything here is unclear, or if you think a policy is not working as intended, raise it with your manager or with [NAME] at [EMAIL].
2. Joining
2.1Documents. On joining you must provide the documents listed in your offer letter, including proof of identity and address, your permanent account number, your universal account number where you have one, qualification certificates, and a relieving letter from your previous employer.
2.2Appointment letter. You will receive a letter of appointment on or before your date of joining, setting out your role, place of work, hours, remuneration, notice period and other statutory particulars. Keep it; it is the authoritative statement of your terms.
2.3Induction. You will receive an induction covering the Company’s business, your role, safety, information security, data protection, the code of conduct and the policy for the prevention of sexual harassment at the workplace.
2.4Probation. New employees are on probation for the period stated in the letter of appointment. Confirmation is not automatic; you will be told in writing whether you are confirmed, whether probation is extended, or whether the Company has decided not to confirm.
2.5Nominations. Please complete nominations for provident fund, gratuity and insurance at induction, and update them if your circumstances change.
3. Pay
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These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.
Clause 1.2 says the handbook is not part of the contract and that the appointment letter prevails. That matters in both directions: it preserves the Company’s ability to amend policies, and it prevents a handbook drafted loosely from accidentally varying agreed terms. Do not restate contractual terms such as notice periods or salary in the handbook — refer to the appointment letter instead, so the two can never diverge.
A handbook promising a written grievance response in ten days, an annual review cycle, or an employee assistance programme that does not exist is the document an employee will rely on and an inspector will read. Where a policy is aspirational, either build it or delete it. Clause 8.3 and Clause 7.6 both say expressly to delete rather than imply.
Clause 6.2 points to the standalone policy rather than reproducing it. The legislation requires a specific policy, a properly constituted Internal Committee including an external member, statutory timelines and an annual report. A general respect-at-work section in a handbook does not satisfy any of that. Keep the two documents linked but separate.
The protection against sexual harassment extends to contractors’ personnel, interns and trainees at the workplace, whether or not they are employees. The handbook is issued to employees, so the standalone policy must be displayed and communicated more widely, and the obligation passed down in contracts with contractors.
Clause 3.1 states it because employees ask why their basic is what it is, and because a handbook that describes the structure correctly reinforces the discipline in payroll. Provident fund, gratuity, leave encashment and overtime all compute on that base.
Clause 10.3 states the settlement deadline, and Clause 10.4 commits the Company not to withhold the relieving letter. Both are worth stating publicly: they set the expectation internally, and a handbook that commits to them makes it harder for an individual manager to depart from them under pressure.
Clause 7.6 requires monitoring of systems, devices or premises to be described. Monitoring that employees have not been told about is difficult to justify and is a data protection problem. If nothing is monitored, saying so is also useful.
A grievance concerns the employee’s own treatment; whistleblowing concerns wrongdoing affecting others or the organisation. They need different owners, different confidentiality arrangements, and different escalation. Collapsing them into one process means serious reports go to the person best placed to bury them.
Clause 9.1 commits to specific feedback, support and a reasonable period to improve before further steps. That is both fair and practically necessary: a later termination on performance grounds is very difficult to sustain where no documented feedback exists.
Where the establishment has certified standing orders, their definitions of misconduct and their disciplinary procedure govern and prevail over the handbook. Check whether they apply and, if they do, make sure the handbook does not describe a different process.
Number every version, take a signed acknowledgement at induction, and re-issue with a fresh acknowledgement when a material change is made. A handbook amended silently on an intranet, with acknowledgements collected years earlier against a different version, does not establish that anyone was told.
Working hours, leave, holidays, notice, standing orders applicability, subsistence allowance and record-keeping all differ between States under the rules notified separately by each. A single handbook applied across locations should either state the position for each State or leave those items to the appointment letter for the relevant location.
Reflects Indian law current as of {{DATE OF USE}}. Employment law, data protection obligations and State rules change — have this handbook reviewed by an employment adviser annually, and immediately on any material change in the law or in how the Company actually operates.
This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, company secretary, or chartered accountant as relevant) before you rely on it.