Mandatory HR Policies for Every Growth Stage

Aarthi

Hey everyone, welcome back to The People Stack! I’m Aarthi, and joining me is Raj from O f f r d dot c o. Raj, are you ready to dig into the world of mandatory HR policies?

Raj

Absolutely Aarthi . lets get this rolling

Aarthi

Okay, so let’s start simple. I’m a founder with, say, five employees. What’s the bare minimum I absolutely need?

Raj

Good question. Even with one employee, two things are non-negotiable. First, a P O S H (Posh) Policy — that’s Prevention of Sexual Harassment. The law says every workplace must have one, and if you have ten or more employees, you must form an Internal Complaints Committee.

Raj

Second, a Basic HR Policy covering working hours, wages, and leave. This is because every state’s Shops and Establishments Act requires it. It’s not optional. And third, even small offices need a Safety Policy — basic stuff like fire exits, first aid kits, evacuation drills.

Aarthi

So no free pass for startups, even at five people.

Raj

Exactly. Compliance starts on day one.

Aarthi

Alright, let’s say I grow to ten employees. What changes?

Raj

At ten, the list expands. You must have a Maternity Benefit Policy, because the law entitles women employees to 26 weeks of maternity leave.Then there’s Gratuity. If you employ ten or more, you’re covered under the Gratuity Act. That means you’ll eventually owe gratuity to employees who complete five years, so you need a policy explaining it.And if you’re in an ESI-covered area, with ten or more employees, you need an ESI Policy — basically health insurance contributions through the government scheme.

Aarthi

Got it. Now what happens at twenty?

Raj

Three big policies come into play. First, Provident Fund (EPF) — you must register and make contributions. Second, Bonus Policy — the Payment of Bonus Act kicks in, requiring annual statutory bonus payments. And third, a Grievance Redressal Policy — you have to set up a committee to formally handle employee complaints.

Aarthi

So the jump from ten to twenty is a heavy one.

Raj

Yes, it’s where payroll and employee relations get real. I have seen few companies do weird things to keep it under 20, like start another company and hire more people under the new company. Honestly its not worth the hassle

Aarthi

Wow - Do people really do that ?

Aarthi

Okay, now suppose I’m growing fast and i cross fifty employees.

Raj

At fifty, two things: a Creche Policy under the Maternity Benefit Act — you must provide childcare facilities or tie-ups. And in some industries, a Safety Committee with equal management and employee reps.

Aarthi

is 50 the limit or there is something more

Raj

Yes !! At a hundred, the Standing Orders Act applies. You must have certified standing orders — basically a detailed employee handbook covering classification, conduct rules, leave, termination.

Aarthi

Okay, this is a lot. How should a founder actually go about creating these policies?

Raj

The smart way is to treat policies as living guides. Start with the skeleton — POSH, wages, leave, safety. Then, at each headcount milestone — 10, 20, 50, 100 — add the next set.Keep them simple and readable — plain English, not legal jargon. Display what the law says must be displayed, like POSH procedures. Train managers so they actually understand the policies. And review them once a year, because laws and your company size change.

Aarthi

That makes sense. Start lean, build as you grow, and don’t treat policies as one-time paperwork.

Raj

Exactly. They’re both your shield against legal risk and your employees’ guide to what they can expect.

Aarthi

And if all this sounds overwhelming — the good news is you don’t have to draft everything from scratch. Platforms like www. o f f r d dot c o can automate compliant policies, payroll, and HR docs, so you can stay focused on scaling your business while staying on the right side of the law.

Raj

That’s right. Technology takes the grunt work out of compliance — and trust me, it’s far cheaper than dealing with penalties later.

Raj

Yeah, and the best way to keep up—keep your policies simple, review them annually, make sure you actually display what you’re supposed to. POSH, working hours, notice period—all up on the wall! And don’t just have a dusty folder somewhere—train your managers, so people can actually use this stuff.

Aarthi

So, if you’re listening and thinking, “My HR is still Excel sheets and WhatsApp,” you’re not alone, but it might be time to level up. Start from basics, add as you scale, and remember: policies aren’t just rules, they protect you and your people. That’s it for this episode—Raj, thanks for your time!

Raj

Thanks, Aarthi—this was fun! And hey, if folks want to know what policies they need next, O f f r d .c o’s there to help.

Aarthi

See you next episode on The People Stack. Bye Raj, and goodbye everyone—stay compliant!