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Startup·7 min read
HR Policies for Startups: Handbook, Leave & Contracts That Scale
Put leave, probation, and IP policies on paper before your fifth hire—avoid disputes and due diligence gaps.
May 08, 2025
What you'll take away
- Appointment letters must match actual CTC and PF structure.
- Handbook covers leave, POSH, remote work, and device security.
- Founder-friendly ≠ legally vague—Indian labour law still applies.
- Pelago drafts policies sized to your headcount.
Core documents
- Appointment letter + CTC annexure.
- Confidentiality and IP assignment.
- Leave and attendance policy (state-aware).
- Code of conduct and disciplinary process.
POSH compliance
10+ employees trigger POSH internal committee requirements in many contexts—document committee and training.
Remote teams still need harassment redressal pathways.
Contractor vs employee policy
Define when you use consultants vs payroll—misclassification is a top due diligence finding.
Founder tip: Version-control HR policies—send change logs when you update leave rules.
Pelago HR kit
Templates customized to Kerala/other states, plus payroll compliance hookup when you flip from contractors to FTEs.