What is HR Statutory Compliance?

HR compliance is a process of defining policies and procedures to ensure that the same are in sync with the local laws and regulations.

Businesses of all sizes face increasing human resource complexities as the number of labour laws and regulations increases. Therefore, the risk of penalties for non-compliance has perhaps never been greater. That is the reason why more companies like to hire HR statutory compliance services.

• An employer has the obligation to follow all the local laws pertaining to HR. The companies need to know the following:
•          The company can be audited by an enforcement agency at their discretion. If found wanting, it can impose fines and penalties for non-compliance.

         A company cannot take the position of not understanding or knowing the local laws in its defense.

Now, let's delve deeper into the nuances of HR statutory compliance to understand it better.

Why HR Statutory Compliance is Important?

Every country has its own state and central labour laws that companies must comply with. To address legal compliance, companies need to be up-to-date on all labour regulations in their country. Companies are also required to comply with them. Violations of these regulations can cause a number of legal issues for businesses, including fines and criminal tangles. As a result, every company invests enormous amounts of money, effort and time to meet compliance requirements from professional tax to the minimum wage law.

To cope with the harsh regulatory environment, all companies need to be familiar with and pay attention to all regulations in labour law. As a business owner, you need to develop efficient ways to maintain compliance and minimize risks. If this sounds too complicated, you should definitely think of hiring a competent payroll outsourcing company like Weavings.

Is HR Statutory Compliance different for organizations?

The size of the company is irrelevant when it comes to compliances. Whether it is a partnership firm, limited liability company (LLC) or a public limited company, HR statutory compliance is for all form of companies, big or small.

Advantages of HR Statutory Compliance

Advantages to employees:

�       Ensures a fair treatment to all employees

�       Ensures the salaries are paid as per the applicable wage rates

�       Ensures that employees do not work for long hours or under inhuman conditions. If they work for longer hours, they get compensated for the extra hours.

Advantages to organizations:

�       Helps them avoid penalties or criminal law suits

�       Mitigates the problems of unreasonable wage demands from the employee unions

�       Creates a brand equity of the company in the market for being compliant

�       Increases employee loyalty and commitment

Risk of HR Statutory Non-Compliance

A non-compliant company may be at risk of:

�       Facing law suits

�       Getting a dent on its reputation

�       Losing employee and customer confidence

Final Takeaway

Human rights are at the heart of HR statutory compliance. Labour rights, equal wage rights, safe working conditions rights are some of the basic elements to aim for when outlining the compliance handbook for your company.

At first glance, HR statutory compliance may look just like another regulation that the companies are required to follow. But when you dig deeper, it's clear that HR compliance features shape the employee experience and the entire workplace. By leveraging compliance as an employee-centric tool, you can create a positive work environment where all employees are safe, comfortable, respected and want to contribute to the company. 

If you are looking for hr statutory compliance services, Weavings is one of the best payroll outsourcing companies that offers a bouquet of HR services, including that of hr statutory compliance management.

 Get in touch with our specialists today!