The HR personnel are required to have the necessary knowledge of the local labour laws while preparing employment contracts and service conditions like provident fund, house rent allowance, leaves, working hours etc. In short, wherever there are employment-related terms or benefits or conditions, the relevant laws will apply.

Although a lawyer drafts the contract, the HR needs to have the necessary knowledge of the service conditions and a clear understanding of what is being offered. The employment agreement is the holy grail for both the employer and employee. Any rights, obligations, disputes arising out of the employment agreement have to be kept in mind by the HR. They are the ones managing the employees. Therefore, they need to know the terms and conditions assured to the employees and their obligations under the various Acts related to this.