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