Statutory compliances are established so that the business can function correctly without injuring the needs of the people around them. This article addresses the issue of statutory compliance in HR and its importance.
Statutory compliance meaning is reflected in the term itself. These are a set of legal frameworks that every organization must follow.
In respect to HR, statutory compliances means that a company must conduct itself within the legal framework regarding the treatment of employees.
The Statutory compliance in India in regards to HR are stated below:
The applicability of different Acts can sometimes vary from state to state.
Statutory compliance is important not just for the employee but also for the employer. Not abiding by the law can be proved unfavorable for the company.
The advantages of fulfilling statutory compliance for the organizations are:
The statutory compliances are important in respect of employees as:
- It warrants fair treatment of employees.
- It ensures that the company follows the minimum wage rate and pay their staff accordingly.
- Ensure a safe working environment for employees.
- They cannot be forced to work for long hours against the law.
Abiding by the statutory laws builds and retains the loyalty of customers and employees. The compliances affect the company from inside and outside as well, as the reputation of the company is more secured, giving them an edge over existing competition. Generally, companies are more inclined towards carrying out the tasks that concern the operational goals and can neglect the compliance part. To solve this issue, companies can hire or outsource professional statutory service providers to assist them with the compliances.