The word statutory means “of or related to statues”- rules and regulations.
Compliance means adherence. Thus, Statutory Compliance means
adhering to rules and regulations. Statutory Compliance in HR Compliance alludes
to the lawful structure that an association ought to cling to in managing its
representatives.
Why is it important?
Every country has its own set of state and central labor laws that companies need to comply with. Dealing with Statutory Compliance requires companies to be updated on all the labor regulations in their country. It is also mandatory for companies to adhere to them. Non-compliance with these regulations can cause a company a lot of legal trouble such as penalties and fines. That is why every company invests a huge amount of money, effort and time to meet compliance requirements from professional tax to minimum wage act. To help in this, the company seeks expert advice from labor law and taxation law experts.
In order to manage with a demanding regulatory environment, every company should be well versed and take notice of all regulations in the labor laws. They have to detail proficient approaches to keep up compliance and limit dangers.
Need for Statutory Compliance
The complexity of doing business has increased tremendously and it has become very challenging to be in sync with the operational aspect of every business. As discussed earlier, organization seek the help of Statutory compliance experts whose main focus is to be compliant with the ever-changing regulatory environment.
Also, a lot of companies also provide services on Statutory compliance management and have a deeper understanding of the regulatory setting and provide specialized services to organizations. They streamline the process right from the day to day maintenance of prescribed forms and registers to the filing along with reports.
Advantages of Statutory Compliance
The advantage of statutory compliance for employees:
· Ensures fair treatment of employees
· Ensure they are paid fairly for the work they have done and their company complies with the minimum wage rate
· Prevents employees from working for long hours or inhuman condition
The advantage of statutory compliance to organizations:
· Avoid punishment or fines in view of their convenient installments.
· Protects the association from absurd compensation or advantage requests from trade unions.
· Prevents legal troubles as the company is fully compliant
· Mitigate risks and increases awareness about compliance
· With compliance in place, there is a lower risk of an adverse incident
Risk of Non Compliance
If a company does not conform to rules and regulations it will risk:
· Penal activities and money related misfortunes to the organization.
· Loss of reputation and business integrity
· Customer loyalty will be impacted severely
Does it differ among organizations?
No, it doesn’t.
Statutory Compliance for an organization firm, private restricted organization, LLP, or any kind of organization extensively continues to remain the same.Any association that contracts representatives or laborers and pays them pay or wages must conform to work laws with respect to fiscal remuneration, installment of assessments, insurance and security of representatives, and decency of work HR Compliance .
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