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Published on February 17, 2026 | 8 min read

Introduction

Building compliant HR policies is essential for any organization looking to protect itself legally while creating a fair and transparent workplace. In this guide, we'll walk you through the key steps to develop HR policies that comply with Philippine labor laws and best practices.

1. Understand Your Legal Requirements

Before drafting any policies, familiarize yourself with applicable laws and regulations:

  • Labor Code of the Philippines
  • Social Security System (SSS) requirements
  • PhilHealth and PAGIBIG regulations
  • Department of Labor and Employment (DOLE) guidelines
  • Industry-specific regulations

Consider consulting with HR legal experts to ensure your policies align with current regulations.

2. Conduct a Policy Audit

Assess your current HR practices and identify gaps:

  • Review existing policies and procedures
  • Identify areas of non-compliance
  • Evaluate alignment with company values
  • Gather feedback from employees and management

3. Define Key Policy Areas

Core HR policies typically include:

  • Code of Conduct: Standards of behavior and professional ethics
  • Compensation and Benefits: Salary, bonuses, leave, and other benefits
  • Leave Management: Vacation, sick leave, special leave policies
  • Performance Management: Evaluation, feedback, and development
  • Workplace Safety: Health and safety protocols
  • Anti-Harassment and Discrimination: Creating a safe workplace
  • Data Privacy: Employee information protection
  • Termination and Severance: Separation procedures

4. Draft Clear and Concise Policies

When writing policies:

  • Use clear, simple language that all employees can understand
  • Avoid ambiguous terms and provide specific examples
  • Include the policy purpose, scope, and procedures
  • Define roles and responsibilities
  • Specify the consequences of policy violations
  • Ensure consistency across all policies

5. Ensure Legal Review and Approval

Have all policies reviewed by:

  • Legal counsel specializing in labor law
  • HR professionals with compliance expertise
  • Senior management or company leadership

This ensures policies are legally sound and aligned with company objectives.

6. Communicate and Train

Successful policy implementation requires:

  • Comprehensive employee training sessions
  • Distribution of written policy handbooks
  • Regular updates and refresher training
  • Open channels for questions and clarification
  • Clear communication of policy changes

7. Document Everything

Maintain records of:

  • Employee acknowledgment of policy receipt
  • Training attendance and completion
  • Policy updates and version history
  • Incidents and policy violation responses
  • Legal compliance audits

8. Review and Update Regularly

HR policies should not be static. Review and update them:

  • Annually or when significant changes occur
  • When laws or regulations change
  • Based on employee feedback and workplace incidents
  • To reflect organizational growth and evolution

Conclusion

Building compliant HR policies is an investment in your organization's stability, employee satisfaction, and legal protection. By following these steps and maintaining regular reviews, you create a strong foundation for sustainable business growth.

Need help developing or reviewing your HR policies? HDR HR Consultancy specializes in creating customized, compliant HR solutions tailored to your organization's needs.