Emerging Norms in Employee Policies in India – A New Dawn for Employers

(Arjun Paleri, Raisa Pinto and Harinie Seenivasan) 

Introduction 

In recent years, the concept of employee policy in India has evolved from just complying with the law to becoming a key factor for inclusive and sustainable workplaces. More companies are seeing that strong employee policies promote engagement, legal strength, and workplace culture. This shift is not just aspirational, it is essential. In this article, we look at the basic policies a company should have in accordance with the applicable laws and new trends in important policy areas and offer practical steps for companies that want to stay ahead. 

What Employers Must Do? – Legal Requirements in India 

At a minimum, employers in India are required to frame policies in compliance with statutory mandates under central and state labour laws. Core requirements include maintaining standing orders under the Industrial Employment (Standing Orders) Act, 1946, implementing a anti- sexual harassment policy under the Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act, 2013, including policies on statutory leaves and maternity benefits, etc. With four Labour Codes on the horizon, employers will also need to harmonize their policies on wages, social security, industrial relations, and occupational safety to ensure they remain compliant across jurisdictions. 

Where Policies are Headed– Key Developments 

As workplaces in India continue to evolve, employers are increasingly moving beyond statutory compliance to adopt progressive policies that anticipate future workforce needs. These developments reflect global best practices, rising employee expectations, and a broader shift toward building resilient, inclusive, and future-ready organizations. Based on our experience, the following represent some of the key emerging policies that employers are adopting in India: 

1. Holistic Leave Policies 

While statutory leaves like annual leave, sick leave, and maternity leave form the statutory baseline, companies are now introducing broader leave options. These include paternity leave, bereavement leave, mental health days, and gender-neutral caregiving leave. Some organizations are also trying out unlimited or flexible leave policies. 

2. Flexible Working Models 

The pandemic has changed employee expectations about work flexibility. Employers are setting up hybrid arrangements that combine remote and in-office work. They are also introducing policies on home-office allowances, flexible start and end times, and asynchronous work for global teams. More and more, hybrid policies are seen not as “perks” but as essential parts of workforce planning. 

3. Safety and Well-Being of Employees 

Occupational safety is moving beyond physical safeguard to focus on overall well-being. Employers are launching organized mental health programs, Employee Assistance Programs (EAPs), and providing wellness allowances. This is especially true in industries like manufacturing and IT services. Here, safety frameworks are being combined with mental health awareness, leading to a more complete approach to "duty of care." 

4. Diversity, Equity and Inclusion 

Indian employers are increasingly adopting DEI policies that extend beyond gender representation. These policies include clear anti-discrimination clauses that address sexual orientation, gender identity, disability, caste, and religion. Companies are also introducing gender-neutral restrooms, inclusive healthcare benefits, and return-to-work programs for women and other underrepresented groups. This trend shows global influence and a rising awareness of inclusivity as an important aspect of business. 

5. Pandemic-Era and Emergency Response Policies 

Even as the immediate impact of COVID-19 has receded, employers are embedding learnings into long-term policy frameworks. Examples include vaccination leave, health insurance for pandemics, business continuity plans, and quick response measures for unexpected crises. This change shows the need for resilience and flexibility in policy design. 

How to turn Policies into Practice – Employer Takeaways 

Implementing progressive employee policies involves more than just drafting them. It needs cultural alignment, consistent enforcement, and clear communication. When these policies are part of daily practices and the business strategy, they lower risks and help build trust, engagement, and retention. The following are some points that can be considered for effectively implementing progressive employee policies: 

1. Ensure consistency with culture: Make sure that policies reflect the organization's values and everyday actions, not just paperwork for compliance. 

2. Communicate clearly: Regularly explain policies in simple, accessible language so employees understand their rights and obligations. 

3. Train managers and teams: Prepare leaders and HR teams to apply policies fairly and consistently throughout the organization. 

4. Review and adapt: Continuously review and revise policies against changing laws, workforce needs, and industry standards. 

5. Embed in strategy: Include progressive policies in business planning to build employee trust, improve retention, and strengthen organizational resilience. 

Conclusion 

The evolution of employee policies in India shows a clear shift from compliance to a more complete approach that encourages inclusivity, flexibility, and resilience. By integrating progressive policies into everyday practice and connecting them with the company culture, employers can build trust, enhance legal and reputational protections, and secure their workforce strategies