Everything you need to know about Statutory Compliances in India
The word”HR” (“Human resource”) is a reference to how employees are managed and developed within a company. A business cannot function without employees (employees) so creating policies that are appropriate for the development and welfare of employees is crucial to running a business.
The statutory compliance requirements are designed to ensure that businesses can operate properly without harming the requirements of those surrounding them. This article focuses on the subject of HR statutory compliance and its importance of it.
What is Statutory Compliance?
The meaning of statutory compliance is expressed in the definition itself. They are a set of legal guidelines that each organization must adhere to. Regarding the HR department, compliance with the law means that an organization must adhere to the legal guidelines regarding the treatment of employees.
What is HR Compliance in India?
The legal compliance requirements in India with respect to HR is as follows:
- Labour Welfare Fund Act, Bonus Act
- Industrial Establishment (N&FH) ACT
- Shops and Commercial Establishments Act
- ESIC Act
- Employees Provident Funds Act
- Child Labour Prohibition & Regulation Act
- Interstate Migrant Workmen ACT
- Professional Tax Act
- Minimum Wages Act, Trade Unions Act
- Employment Exchange Act
- Contract Labour Act
- Payment of Wages Act
- Sexual Harassment of Women Act
- Maternity Benefit Act, Gratuity Act, Equal Remuneration Act
- Employees Compensation Act
- Factories Act
- Industrial Employment Act, Apprentice Act, Industrial Disputes Act
The application of different Acts could differ from state to state.
What is the reason Statutory Compliance is important?
Compliance with the law is essential not only for employees but as well for the employer too. Infractions to the law can be proven negative for the company.
The benefits of ensuring the requirements of the law for organizations are:
- A company that is compliant can cut down on time, effort, and money that can be put to use in areas that affect its revenue and operations.
- The company will be able to avoid any fines or penalties that might otherwise be imposed because of the inability to pay timely.
- The business can shield it from unreasonable requests made by trade unions over pay and other benefits.
- Avoid negative incidents and other legal consequences.
- The company will be able to safeguard its brand name in the marketplace.
- It can help establish an ethical workplace culture.
- Efficacy increases employee morale and reduces employee turnover rate.
Compliance with the law is important for employees, as:
- It is a right to fair treatment for employees.
- It makes sure that the business adheres to the minimum wage and pays its employees accordingly.
- Create a safe work area for workers.
- The law does not permit them to be forced to work for hours in violation of the law.
Respecting the laws of the state helps to maintain the trust of both employees and customers. Compliance can affect the business both from the inside and outside and the reputation of the business is more secure, which gives the company an advantage over its competitors. Most companies are inclined to complete operations goals, and they may not pay attention to the compliance aspects. To resolve this problem, businesses can employ or outsource professional legal service providers to help them with their compliance.