Statutory compliance in HR refers to the legal framework which organizations must abide by with respect to the treatment of their employees. Most of your company’s time and money goes into ensuring compliance to these laws. Everything to being compliant to the payment of minimum wages to provident fund or maternity benefits needs not just whole lot of time but also experts who can guide on all of these statutory compliance measures.
Therefore, dealing with statutory compliance requires for companies to be well-versed with the various labour regulations in India.
Importance of Compliance in Business
Understanding the reasons for the various rules, laws and regulations that govern business will help take advantage of any benefits they offer while ensuring you stay in compliance at all times.
Reduced Legal Problems – The most obvious consequence of compliance is that it decreases your risk of fines, penalties, work stoppages, lawsuits or a shutdown of your business. When you don’t meet some compliance requirements, you might get a warning and a chance to correct the problem. In other situations, you might face costly sanctions. Failing to meet your legal obligations, such as in manufacturing procedures or advertising methods, can also help someone suing.
Improved Operations and Safety – Many regulations can help more than harm. For example, regulations regarding discrimination and harassment help to create a better working environment for employees, which can lead to more worker productivity. (Ivermectin) Following safety and security rules helps prevent injuries, fires or building evacuations that hurt your profitability. In addition to learning the bare minimum you need to do to meet legal obligations.
Better Public Relations – When you meet legal obligations, the company can tout these on website and in other marketing materials. For example, in job advertisements, include the fact that you are an equal opportunity employer. If you post your mission statement on your website, state that you do not discriminate based on race, sex, creed or sexual orientation.
Higher Employee Retention – Many business compliance issues deal with protecting employees. The more employees feel they work in a fair, professional and safe environment, the more likely they will be to stay with you. Even if you don’t harass or discriminate against any employees, if you don’t take steps to ensure none of your employees do, you can lose valuable workers.
Avoid Future Compliance Violation Costs – Compliance will help your company avoid legal risks. Lawsuits and settlements can easily cost you millions of rupees. Fines and other compensatory payments can also add up.
Even if you are able to pay these costs, you might see your sales drop dramatically. If you failed to protect customer credit card information and fraudulent purchases were made, you will probably lose customers who no longer trust your brand.
Damage to your company’s reputation can take years to repair. It’s impossible to estimate just how much monetary damage it can do. It’s better to practice good data security and avoid a breach altogether.
Build Trust with Your Customer Base – Complying with laws will show your customers that you care about keeping them safe. While lawsuits or fines will damage your reputation, a record of compliance will show you are running a trustworthy operation.
