EMPLOYEE HANDBOOK

Table Of Contents
1 Introduction................................................................................................3

2 Joining Formalities.......................................................................................4
Personal Particulars:.....................................................................................4
3 Work Culture...............................................................................................5
Xyz’s Mission................................................................................................5
Working Hours / Work Week.........................................................................5
Smoking Policy........................................................................................... 5
4 Job Grades And Designations........................................................................6
Job Grades / Designations...........................................................................6
5 Terms Of Employment.................................................................................7
Probation................................................................................................... 7
6 Leave And Holidays......................................................................................9
Purpose And Overall Policy............................................................................9
Accounting Year...........................................................................................9
Leave Sanctioning Authority..........................................................................9
Privileged Leave (Pl)...................................................................................10
Casual Leave / Sick Leave (Cl/Sl)................................................................10
Maternity Leave (Ml)...................................................................................11
Holidays................................................................................................... 12
7 Compensation, Benefits & Reimbursements.................................................13
Payroll Date...............................................................................................13
Compensation & Benefits Components.........................................................13
Basic Salary...............................................................................................13
House Rent Allowance................................................................................13
Conveyance Allowance................................................................................14
Medical Reimbursements............................................................................14
Provident Fund Allowance (Pf).....................................................................15
Other Allowances.......................................................................................15
Performance Pay........................................................................................15
Annual Salary Revision................................................................................15
Deduction Of Tax At Source From Salary (Tds).............................................16
Employee Insurance...................................................................................16
Reimbursements.......................................................................................16
8 Official Travel............................................................................................18
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 Local Travel...............................................................................................18
Domestic Travel.........................................................................................18
Foreign Travel............................................................................................18
9 Purchase Of Material /Services...................................................................20

10 Leaving Formalities..................................................................................21
Termination Of Services............................................................................21
General Policy..........................................................................................22
Gratuity...................................................................................................22
Service Certificate................................................................................... 22

11 Social Media And Social Networking

1. Introduction

1.1 This Employee Handbook has been prepared to help you get familiar with
the key policies, benefits, regulations and codes of conduct at XYZ. We hope
this handbook will be useful and will help you plan and enjoy the benefits
and opportunities that XYZ provides.

1.2 This Handbook is confidential and is for internal circulation only. It is subject
to change as and when necessary to remain in compliance with appropriate
Government regulations and XYZ’s policy. The contents of this Handbook will
be modified from time to time and amendments will be issued.
Interpretation of the handbook by the management is final. If you need any
clarification or further information on any aspect of this Handbook, you can
get in touch with the HR department, which will be happy to help you.

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 2. Joining Formalities

1.1 XYZ welcomes all employees and hopes that they will enjoy the work
culture. When a new employee joins XYZ a formal induction will be
conducted to familiarise them with all the activities in XYZ.

Personal Particulars:

1.2 XYZ will keep a record of all the employees’ personal particulars pertaining to
the recruitment & selection process. Once an employee joins XYZ, s/he
should give a copy of pan card, adhar card and two passport-sized
photographs to the HR department within one week of joining. In case the
pan card is not available, a copy of passport or driving license can also be
submitted.

1.3 Employees will be required to sign an employment contract on joining XYZ.

1.4 Employees are to keep the HR department informed of any changes in any
of the above records.

1.5 In order to calculate TDS (tax deduction at source) accurately the following
forms need to be completed and returned to the Finance department by 15
April every year or within 15 days of joining the organisation:

 Provident Fund transfer/ application form (whenever PF is applicable)

 Tax Estimate/ Savings declaration form (annexure 7)

3. Work Culture

 XYZ’s Mission
1.6 XYZ’s mission is to be …...

 Working Hours / Work Week

1.7 Office hours at XYZ are from 9:30 am to 6:30 pm with a lunch break of 30
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 minutes, from Monday to Saturday with the first and third Saturdays off.
Employees are encouraged to observe punctuality. However all staff will
have to work as per the needs and demands of the job.

 Smoking Policy

1.8 The Office is a non-smoking premise and all are requested to co-operate in
this respect.

 Media

1.9 The Public Relations department of XYZ will manage all communication with
the media. In case any media person contacts an employee, s/he should be
directed to the PR department. Employees must not make any statement to
the press on behalf of XYZ.

4. Job Grades And Designations

 Job grades / Designations

1.10 XYZ has five levels. All designations are reflective of
the roles being performed. Designations are indicative of
functions within a team and each team member plays an
equally important role in the effective functioning of that team.

LEVEL DESIGNATION TYPICAL POSITIONS

1 Founding Members CEO, Director

2 Senior Management Team VP/FC/Head of function
3 Middle Management Team GM/Sr Mgr, Mgr, AM
4 Junior Management Team Executives
5 Support Staff Housekeeping & other staff

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 5. Terms Of Employment

1.11 All employees will be issued employment agreements at the time of joining.

Probation

1.12 Employees may be placed on probation for a period of six months.

1.13 Alternately, the employees will be treated as confirmed employees.

1.14 At the end of 6 months for the employees on probation, there will be a
Performance Review, based on which the employee will be confirmed.
confirmation, this period of 6 months will be included for the purpose of
granting increments / entitlements and any other benefits (with the
exception of leave).

1.15 In case, the Performance Review discussion indicates a less than

satisfactory performance, the same will be communicated to the employee
and his / her Probation period may be extended by another 3 months or the
employment terminated depending upon the Review. If the performance is
unsatisfactory even after the extension of the probation period, his / her
employment with the company is liable to be terminated.

1.16 At all times, employees are expected to perform and deliver their duties /
responsibilities as per their designated role to the satisfaction of the
management.

6. Leave And Holidays

 Purpose and Overall Policy

1.17 This section includes XYZ’s policies on Leave, which are categorised as:

 Privileged Leave (PL)

 Casual Leave / Sick Leave (CL / SL)
 Maternity Leave (ML)
 Holidays

1.18 During probation, an employee is not eligible for any leave and thus any

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 leave taken will be considered as unpaid leave. During the first year of
service, the leave that an employee can avail of is based on the number of
months after confirmation; therefore leave for the probation period is lost.
If
a person on probation avails of 15 days or more of unpaid leave, his / her
probation period will be extended by the same number of days.

 Accounting Year

1.19 The leave accounting year is the financial year (April to March). Pro rata
adjustments will be made to bring entitlements in line with this.

 Leave Sanctioning Authority

1.20 The CEO will sanction leave for the Directors, Directors will sanction leave
for all Managers/Department Heads and the Department Heads will
sanction leave for all in their department.

 Leave Application

1.21 Employees are requested to make applications for leave using a Leave
Application form (Annexure 2). This must be approved by the Leave
Sanctioning Authority and forwarded to the HR department once approved.
Employees are advised to keep his / her immediate supervisor informed at
the earliest. In case of leave for emergencies, the employee is required to
fill the Leave Application and get his / her immediate supervisor’s approval,
once he / she resumes work.

 Extensions

1.22 Employees are not encouraged extensions of leave. They will be considered
only if the employee communicates such an intention in writing.

1.23 When extensions are requested on medical grounds, a medical certificate

should be submitted as soon as possible.

 Privileged Leave (PL)

1.24 Employees are encouraged to plan their PL entitlements

carefully in order to meet their personal needs and the
needs of XYZ. Employees are encouraged to actively
communicate leave plans and details to their
supervisors so that all team members can adjust
their schedules.

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 1.25 All employees are eligible for 22 working days of
Privileged Leave every year. However an employee can take a maximum of
15 working days at a stretch. In case an employees avails of more than 15
working days at a stretch, such leave will be treated as unpaid leave.
1.26 All Paid holidays and Sundays that precede, succeed or fall within the
period of the employee availing the PL, will not be considered part of the
PL.

1.27 Privileged Leave cannot be accumulated or en-cashed.

 Casual Leave / Sick Leave (CL/SL)

1.28 Casual Leave is permitted for employees to attend to their

personal exigencies.

1.29 Sick Leave is permitted when an employee is unable to

attend work for medical reasons. When an employee is ill
and is unable to come to work he / she must call the office
and notify his / her supervisor of their absence.

1.30 Employees are eligible to 10 working days of Casual / Sick leave in a year.

1.31 In case of absence for more than three (3) working days at a stretch, a
Medical Certificate from a doctor is required. In case of additional
requirement of SL, it may be combined with PL. Advance SL may be
permitted on a discretionary basis.

1.32 More than three (3) working days taken as CL, would be treated as PL.
Alternately, medical certificate should be submitted for the leave to be
considered as sick leave.

1.33 Casual / Sick Leave cannot be accumulated or en-cashed.

1.34 Casual / Sick Leave cannot be suffixed or prefixed to Privileged Leave.

 Maternity Leave (ML)

1.35 Maternity Leave (ML) will be available to all female employees for the
purpose of confinement and recuperation thereafter.

1.36 Female employees must notify XYZ in writing and produce a Medical
Certificate confirming the pregnancy and detailing the expected date of
birth and the date on which ML is to commence.

1.37 The act is applicable to women employees who have been working as an
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 employee in the company for a period of at least 80 days in the past 12
months.

1.38 Female employees will be entitled to take ML of up to eight (8) weeks

immediately preceding the birth and the remaining weeks immediately after
the actual date of birth. An employee can adjust the timing of the ML but it
will not exceed twenty six (26) weeks.

1.39 Additional maternity leave of 4 weeks Post Maternity Leave of 12 weeks, in

case of “illness arising out of pregnancy, delivery, premature birth of child,
miscarriage, medical termination of pregnancy or tubectomy operation,
supported by a Medical Certificate.

1.40 The above benefits are applicable for their first 2 children only. For women
who are expecting after having 2 children, the duration of paid maternity
leave shall be 12 weeks (i.e., 6 weeks pre and 6 weeks post expected date
of delivery).

1.41 In case of miscarriage or medical termination of pregnancy, the employee

on production of a medical certificate will be entitled to leave with wages for
a maximum period of six (6) weeks immediately following the day of her
miscarriage or medical termination of pregnancy.

1.42 An employee will be paid their full salary for the period that they are on
Maternity Leave.

1.43 Any Sunday or Public Holiday that falls due during ML is counted as part of
the Maternity Leave and will not give rise to any additional leave or
payments.

1.44 PL cannot be clubbed with ML.

1.45 On adoption of a child, female employees who adopt a child upto 3 months
will be eligible for 12 weeks of maternity leave from the date of adoption
i.e. the date the child is handed over to the mother.

1.46 This provision of 12 weeks of maternity leave is also applicable to a

commissioning mother, which means a biological mother who uses her egg
to create an embryo implanted in another women.

1.47 Work from home option can be avail-ed after the expiry of the Maternity
leave depending on the nature of the work on terms and period that are
mutually agreed.

1.48 A Crèche facility is Mandatory for every establishment employing 50 or

more employees, within such distance as may be prescribed, either
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 separately or along with common facilities. Woman employee should be
permitted to visit the crèche 4 times during the day, which includes the
regular rest interval .

 Holidays

1.49 XYZ will decide and announce the list of Public Holidays at the beginning of
Calendar year based on local practice. The number of such public holidays
declared will typically not exceed 10 days.

1.50 Similarly, XYZ has the discretion to declare an additional holiday, if a public
holiday falls on a Sunday or if two holidays fall on the same day, to declare
an additional holiday.

1.51 Similarly, XYZ has the discretion to designate a holiday as a working day, to
compensate for working days lost due to natural calamities, civil
disturbances or other unforeseen circumstances.

7. Compensation, Benefits & Reimbursements

 Payroll date
1.52 The salary of each employee is credited to his/her bank account by 5 th of
Next month.

 Compensation & Benefits components

1.53 The salaries have been structured to be tax compliant for the organization

as well as to be tax effective for the employees. The break up is as follows:

o Basic
o House Rent Allowance
o Conveyance Allowance
o Medical Reimbursements
o Supplementary Allowance

 Basic salary

1.54 The Basic salary is the primary element in the compensation package and
is fully taxable.
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 House Rent Allowance
1.55 House Rent Allowance will be a percentage of Basic salary.

1.56 HRA exemption will be given on production of receipt of the rent. As per

Income Tax Laws following exemption will be granted:

The lowest of the following three options is exempt from tax:

(a) Actual HRA received in respect of the period during which the rental
accommodation is occupied by the employee, in the previous year OR
(b) The excess of rent paid over 10% of basic salary OR
(c) In case of Mumbai / Kolkata / Delhi / Chennai, 50% of the salary and
incase of others cities 40% of the salary due.
Salary for the purpose of computation of exemption includes basic salary
and bonus.

1.57 Employees need to provide stamped receipts for the rent paid for all the
months that they claim tax exemption for along with the copy of lease
agreement by 15 March of each year to the Finance department.
Exemption is not available where an employee lives in her/his own house
or in a house for which no rent is paid.

For example X, who resides in Mumbai, gets Rs.25,000 as basic salary. He

receives Rs.6,000 as house rent allowance. Actual rent paid by him is Rs.7,500.
Out of Rs.6,000 received as HRA, the least of the following is exempt from tax
a. Rs.6,000/-, being HRA
b. Rs.5,000/- being excess of rent paid over 10% of basic salary
c. Rs.12,500/- being 50% of salary.
In this case, Rs.5,000 is exempt from tax

 Conveyance Allowance

1.58 An employee will be eligible for a maximum reimbursement as per the

salary structure and the level of the individual.

1.59 As per the Income Tax Act an employee is eligible for reimbursement of
conveyance expenses only from residence to office and back to the
maximum of Rs.1600 per month. The conveyance reimbursement shall be
paid along with the monthly salary.
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 Medical Reimbursements

1.60 All employees will be eligible for reimbursement of upto Rs. 15,000 per
annum (April - March) towards domiciliary expenses incurred by them, for
themselves and/or any member of their family (Note: Family in relation to
employee means (a) spouse and children of the employee; and (b) the
parents, brothers and sisters of the employee or any of them wholly or
mainly dependent on the employee)

1.61 Employees can claim the reimbursements by submitting necessary proof

documents i.e. bills / receipts for medicines / professional consulting from
medical practitioners, to the Finance department on a monthly basis.

1.62 In case, the employee does not furnish medical bills, the amount will be
taxed at the end of the year.

 Provident Fund Allowance (PF)

1.63 All employees will be eligible for a PF allowance as 12 % of the Basic Salary.

1.64 This allowance will be payable as a monthly allowance and when the PF
account is opened the same will be deposited in the PF account of the
individual.

 Other Allowances

1.65 Details of other allowances if any will be mentioned in the employee’s

appointment letter under Annual Compensation Plan.

 Performance Pay

1.66 Performance pay or bonus will be paid in any given year as per the
performance appraisal process.

1.67 Employees who have completed 6 months of service in the organization by

October of the given year will be eligible for pro-rata performance pay as
per the performance appraisal process.

1.68 Performance pay will be payable after appraisals.

1.69 Performance pay amount is fully taxable.

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 Annual Salary Revision

1.70 The salary for the individual employee will be reviewed annually. The
change in the salary will be dependent on the overall performance of the
company as well as performance of the individual that will be decided as per
the performance appraisal system.

 Deduction of tax at source from salary (TDS)

1.71 In computing the tax deductible at source, the company will take into
account any rebate, which is available to the employees as per the provision
of the income tax Act, 1961. The employees are required to furnish a
declaration (Annexure 7) with regard to the investment proposed to be
made by them in any eligible instrument latest by April 15 in each year. All
new employees are required to furnish the declaration within 15 days of
joining the organization.

1.72 New employees are also required to furnish the salary certificate from
earlier employer on joining.

1.73 Employees will then be required to furnish proof of such investments latest
by March of each year. In case proofs are not furnished, the rebate as per
provisions of Income Tax Act, 1961 cannot be considered and tax will be
deducted accordingly.

1.74 Employees may contact the Finance department for more details regarding
their salary and TDS calculation. The employee is solely responsible for filing
their own Income Tax return at the end of the year and the Finance
department will issue the Form 16 together with a salary certificate for the
financial year.

 Employee Insurance

1.75 XYZ will insure its employees in Grades in I, II, III & IV. The employees will
be insured for health for amounts as per the grade structure.

1.76 PQR Policy will cover this.

1.77 New employees joining on the 15th of the month or earlier will be insured by
the end of the month. For employees joining after the 15 th, insurance will be
done in the next month-end.

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 Reimbursements

1.78 Employees can claim reimbursements for expenses done for official
purposes by filling up the expense statements as per Annexure 1.

1.79 Reimbursements will be as per the expense approval matrix. The same can
be referred in Annexure 4.

1.80 No approval is required for reimbursements as per the ceiling. However this
is subject to submission of bills.

1.81 For any expenses exceeding the ceiling, approval from the department head

is required.

8. Official Travel
 Local Travel

1.82 Employees’ conveyance from residence to office and back is part of the
employees’ salary and therefore cannot be claimed separately.

1.83 Employees can claim reimbursements for local conveyance as per Annexure
4. No approvals are required for reimbursements within the ceiling. But this
is subject to submission of bills. Any exceptions to this will have to be
approved by the directors/ CEO. However, approval of the department head
is required for submission of any claims at actual.

1.84 Employees have to submit their conveyance reimbursement form every

month and not carry it forward. Conveyance reimbursements will
on a weekly basis.

 Domestic Travel

1.85 Employees undertaking travel have to submit a travel requisition as per

Annexure 5.

1.86 In case an advance is required, the same can be obtained based on the
travel requisition.

1.87 The mode of travel is a Low Cost airlines / Economy airlines employees.

1.88 Annexure 4 covers ceilings for reimbursements on lodging & boarding,

food & conveyance.
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1.89 The Expense Statement as per Annexure 1 must be submitted to the
Finance department (with original receipts / bills) within a week of
resuming work and needs to be approved by the respective department
head/director.

Foreign Travel

1.90 Employees undertaking travel have to submit a travel requisition as per

Annexure 5a.

1.91 In case an advance is required, the same can be obtained based on the
travel requisition.
1.92 XYZ will bear all expenses incurred on Visas for countries that proposed to
be visited on work including countries that are to be visited en route. Visas
will generally be taken for the minimum period required for the purpose of
the visit except for frequent travellers where a long-term visa may be
desirable. Expenses on Visas for any personal travel during the business trip
will have to be borne by the employee.

1.93 Airport taxes at all airports will be reimbursed on actual and employees can
claim the same as part of the Official Travel expense reimbursement.

1.94 Whenever and wherever possible, accommodation will be arranged free of

cost by XYZ.

1.95 Employees on foreign travel for official purpose will be eligible for a food &
conveyance allowance as per the expense approval matrix as per
Annexure 4 (but subject to production of original bills) during the period
of foreign travel.

1.96 The Expense Statement as per Annexure 4 must be submitted to the

Finance department (with original receipts / bills) as soon as the employee
resumes work for payment once approved by the respective department
head/General manager.

1.97 Advances can be given subject to approval of the HR department.

1.98 The settlement would be in Indian Rupees at the exchange rate of the date.

1.99 Employees who travel abroad for training / seminars should submit a
Programme Report and could also make a presentation on the experience /
knowledge gained during the visit. Reading material of the Training should
be submitted to the XYZ Resource Centre.

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Special projects

1.100 An allowance for special projects would be given as per the discretion of
the management.

9. Purchase Of Material /Services

1.101 For purchase of any material or services, a prior authorisation is required

in the form of a material requisition as per Annexure 3.

1.102 All commitments require appropriate documentation authorisation and

approval in advance of the contemplated transaction. The requisition
documentation should include requester's name, estimated cost of the
request and purpose material/services requested. This should be
supported by two quotations for the required material/services.

1.103 The originator of the requisition is responsible for obtaining all signatures.
Each requisition should be authorised by head of the department (HOD).

1.104 Based on the approval matrix (Annexure 8), the originator should also
obtain an approval.

1.105 The company's approval matrix contains a listing of the most common
types of commitments and expenditures and the appropriate signature
level required.

1.106 Employee expense reports must be authorised by the department head.

No employee shall approve his/her own expenditures.

1.107 Employees are strictly prohibited from requesting that a supplier split the
purchase amount on more than one invoice to meet the approval limits of
this Policy.

1.108 In case of a director, an authorisation should be sought from another

director.

10. Leaving Formalities

 Termination of services

1.109 During the probation period, the employee or the organisation shall be
entitled to terminating the employment at any time by one party giving to
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 the other two weeks’ notice in writing or two weeks salary in lieu of
notice.

1.110 After confirmation, your employment may be terminated at any time by

either party giving to the other one months’ written notice or one month’s
salary in lieu of notice.

1.111 The organisation can terminate your employment without notice or salary
in lieu of notice on the happening of one or more of the following events:

1.111.1 If any declaration given or information furnished by you to the

organization proves to be false or if you are found to have willfully
suppressed any material information;

1.111.2 On your being convicted of any felony or being in the opinion of the
organization guilty of conduct which constitutes a failure to
conscientiously attend to your employment or insubordination or
disobedience of lawful instructions;

1.111.3 On your failure to attend for duty at all reasonable

times;

1.111.4 On your failing to comply with any of the provisions of your contract of
employment

Exit Interview

1.112 The HR Department will conduct an exit interview in order to get the
employees’ reasons for leaving, feedback as well as other inputs or
suggestions on the organisation.

General Policy

1.113 Before leaving the company, the employee must ensure that the following
formalities are completed

1.113.1 Give a letter a resignation specifying the notice period.

The letter must be given to the supervisor

1.113.2 Return all XYZ property i.e. manuals, calculators,

floppies, etc.

1.113.3 Get certificate from Accounts that no dues are pending.

1.113.4 Give letter to HR surrendering the Company insurance

policies.
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1.114 All dues will be settled within 30 days of the date of cessation of
employment in the XYZ.

Gratuity

1.115 For an employee who has been with the organisation for a minimum of 5
years, gratuity has to be paid at the time of his/her leaving the
organisation. Gratuity is calculated as 15 days of basic salary for every
completed year of service, based on the last salary. The maximum
amount payable as gratuity is either Rs. 3,50,000 or 20 months salary
whichever is lower.

Service Certificate

1.116 Service Certificates will be issued to a resigning employee at the discretion

of the HR department. This must be issued within 30 days of cessation of
employment. All dues must have been settled. Service certificates will be
issued only to employees having completed a minimum of 1 year of
employment with XYZ.
11. Social Media and Social Networking Policy

1. This policy shall apply to all employees of XYZ, excepting those who have
been authorized in writing by the company to blog / communicate on its
behalf.

2 Personal blogs should have clear disclaimers that the views expressed by the
author in the blog are the author’s alone and do not represent the views of
the company. Be clear and write in first person. Your writing should clearly
indicate that you are speaking for yourself and not on behalf of the company.

3 Information published on your blog(s) should comply with the company’s

confidentiality and disclosure of proprietary data policies. This also applies to
comments posted on other blogs, forums and social networking sites.

4 Be respectful to the company, other employees, customers, partners, and

competitors.

5 Social media and social networking should be on the employees’ own time and
such activities should not interfere with work commitments. Please refer to IT
resource usage policies, as necessary.

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6 Social networking sites, including but not limited to groups and fan clubs
cannot be formed on behalf of the company, except by authorized department
and individuals.

7 Your online presence reflects on the company. Be aware that your actions
captured via images, posts, or comments can reflect as our company’s.

8 Do not reference or cite company clients, partners, or customer without their

express consent. In all cases, do not publish any information regarding a
client.

9 Respect copyright laws, and reference or cite sources appropriately. Plagiarism

applies online as well.

10 Company logos and trademarks cannot be used without written consent.

12. Mobile reimbursements

2.1 The employees are entitled to reimbursement on their mobile bills used for
official purpose according to the limits mentioned in the mobile
reimbursement matrix.

2.2 All employees in the Founders, Senior Management are allowed

reimbursement on their mobile bills.

2.3 Employees in the Junior Management band will be allowed reimbursements

on mobile bills on need basis with the written approvals from the respective
Department Heads.

2.4 For availing reimbursement, the mobile bill should be attached to the duly
filled expense voucher after deducting personal calls, approved by the
Department Head, and submitted to the Finance & Accounts Department.

2.5 The reimbursement will be disbursed through cheques in 7 business days.

2.6 Any exceptions to this policy will be considered only with the approval of
the respective Department Head and the Human Resources Department.

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 Mobile Reimbursement Matrix

Band/ Level Location Maximum Payable (Monthly)

Founding members
and Senior All Rs. 3000/-
management
Middle Management All Rs. 1000/-
Junior management All Rs. 500/-
Special Eligibility

Mumbai, NCR, Bangalore Rs. 1500/-

Field Staff (of Agency,
Corporate Sales & Others – Pune,
Hotels) Ahmadabad, Kolkata, Rs. 2500/-
Chennai, Hyderabad*
* All of them operate out of their home and have no official landline connection.

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