Recruitment and Hiring

• An OPC has full legal capacity to hire employees under employment contracts for various roles.
  
• The sole member or director is responsible for defining job roles, conducting interviews, and issuing offer letters.
  
• Employment terms such as salary, working hours, leave policy, and termination conditions must be clearly stated in writing.
  
• The OPC must comply with labour laws and employment standards, even if it has only a few employees.
  
• It may hire permanent, contractual, or part-time staff depending on business needs.
  

Salary and Payroll Compliance

• The OPC must ensure timely salary payments and maintain payroll records for each employee.
  
• If salary thresholds are met, the company is required to deduct and deposit TDS (Tax Deducted at Source) on employee salaries.
  
• The company must issue Form 16 annually to employees for income tax purposes.
  
• Employee benefits such as bonuses, allowances, and reimbursements must be recorded.
  
• Proper payroll management supports tax compliance and audit readiness.
  

Provident Fund, ESI, and Labour Law Compliance

• If the OPC has 20 or more employees, Employees’ Provident Fund (EPF) registration becomes mandatory.
  
• For companies with 10 or more employees earning less than ₹21,000 per month, Employees’ State Insurance (ESI) registration is required.
  
• The company must also comply with laws such as the Payment of Gratuity Act, Minimum Wages Act, and Shops and Establishment Act, where applicable.
  
• Labour law compliance includes maintaining attendance registers, wage registers, and leave records.
  
• Non-compliance may attract penalties, interest, or inspection notices from authorities.
  

HR Policies and Workplace Environment

• Even small OPCs are advised to develop basic HR policies covering code of conduct, leave, disciplinary action, and employee rights.
  
• Ensuring a safe and non-discriminatory work environment is part of the company’s ethical and legal obligations.
  
• OPCs must comply with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, if applicable.
  
• A positive workplace culture enhances employee retention and performance.
  
• Transparent communication and documentation help build a compliant and healthy work environment.
  

Contracts, Records, and Exit Management

• Employment contracts must be legally enforceable and signed by both parties.
  
• The OPC must maintain a personal file for each employee, including proof of identity, educational documents, offer letter, and contract.
  
• In case of resignation, termination, or retirement, the company must follow proper exit procedures, settle dues, and issue experience certificates.
  
• All employee-related documents must be retained for statutory and audit purposes.
  
• Clear exit policies protect both the company and the employee from future disputes.