BizPal Software

What is Statutory compliance in HR?

Need for Statutory compliance in HR

Statutory compliance is crucial in HR in India as it ensures that organizations comply with the legal framework and regulations when engaging with their employees. Adhering to these rules and regulations can prevent legal troubles and fines, which can be significant depending on the scale of non-compliance. The need for statutory compliance in HR in India arises due to several reasons:

Legal Requirement:

Compliance with various laws and regulations related to employment, such as the Employee State Insurance Act, Provident Fund Act, Payment of Gratuity Act, Minimum Wages Act, and others, is mandatory for organizations operating in India. Non-compliance can lead to legal penalties, fines, and reputational damage.

Protection of Employees’ Rights:

Statutory compliance ensures that employees’ rights are protected and that they are provided with benefits such as social security, minimum wages, and other entitlements.

Maintaining Ethical Standards:

Compliance with labour laws and regulations ensures that organizations maintain ethical standards in their HR practices and do not exploit employees.

Avoiding Legal Risks:

Avoiding Legal Risks with statutory requirements can expose organizations to legal risks and legal action by employees, labour unions, and regulatory bodies.

Here is a quick compilation of the various Statutory Compliances In HR

Each one of these has to be filed at various parts of the year, under different forms. Download the Excel sheet for a complete reference.

But your compliance partner must lay out a clear process that follows the following steps:

Employment Contracts:

Compliance includes ensuring that employment contracts are legally binding, clearly outlining terms and conditions, wages, working hours, leave policies, termination procedures, and other relevant information.

Minimum Wage:

Compliance involves adhering to the minimum wage laws and ensuring that employees are paid at or above the legally mandated minimum wage rate.

Working Hours and Overtime:

Compliance includes following regulations regarding maximum working hours per day/week, providing rest breaks, and appropriately compensating employees for overtime work.

Leave Policies:

Compliance entails providing legally mandated leaves such as annual leave, sick leave, and maternity/paternity leave, and ensuring that employees are granted these leaves as per the applicable laws.

Employee Provident Fund (EPF):

Compliance involves deducting and depositing the employee’s contribution to the EPF scheme and fulfilling the employer’s contribution obligations as per the statutory requirements.

Employee State Insurance (ESI):

Compliance includes deducting and depositing the employee’s contribution to the ESI scheme and fulfilling the employer’s contribution obligations as per the statutory requirements.

Tax Deductions:

Compliance entails deducting and depositing income tax from employees’ salaries as per the prevailing tax laws and providing the necessary tax-related documentation.

Anti-Discrimination and Equal Opportunity:

Compliance involves ensuring fair treatment, preventing discrimination based on race, gender, religion, disability, or other protected characteristics, and providing equal employment opportunities.

Health and Safety:

Compliance includes providing a safe working environment, following health and safety regulations, conducting regular safety audits, and implementing appropriate measures to prevent workplace accidents and hazards.

Record-keeping and Reporting:

Compliance entails maintaining accurate records related to employee details, attendance, wages, taxes, and other relevant information. It also includes timely submission of reports to the appropriate government agencies.
It’s important for HR professionals and organizations to stay updated with labour laws, employment regulations, and any changes introduced by relevant authorities to ensure compliance. Non-compliance with statutory requirements can lead to legal consequences, penalties, fines, and damage to the organization’s reputation. Seeking legal advice or consulting with experts in labour law can help ensure compliance in HR practices.

Wrap-up:

Bizpal’s statutory compliance services provide HR professionals with the tools and expertise needed to navigate complex legal requirements. Stay compliant and focus on your core business.

Reach Us Out to help your growth!

Job Discription:

An Accountant helps businesses make critical financial decisions by collecting, tracking, and correcting the company’s finances. They are responsible for financial audits, reconciling bank statements, and ensuring financial records are accurate throughout the year.

This will close in 0 seconds

Job Discription:

Human resources managers supervise a company or organization's hiring process, from recruiting, interviewing, and hiring new staff. They help connect executives with employees, build an employer brand, improve employee engagement, and build strategic talent resources plans.

This will close in 0 seconds

Job Discription:

Purpose of the Job

Responsible for the Payroll and compliance operations for Australia, by working closely with location / Unit payroll coordinators, HRMs /HRBPs, Payroll Vendor, Finance Controllers, Treasury and Accounting to ensure implementation of payroll as per guidelines.

This will close in 0 seconds

Job Discription:

Advisors are the bloodline of many modern startups. Not only do they often add fancy names to your team page, but they can help your business with their connections and network, help you work through issues, bring in their inputs, and open doors with partners and investors that would usually be closed.

That doesn’t come from nothing, of course. Companies must prove their worth, show progress every week, and the traction an advisor expects for them to stay on board. That often also means that the advisor is compensated or has a stake in the company.

This will close in 0 seconds

Job Discription:

Advisors are the bloodline of many modern startups. Not only do they often add fancy names to your team page, but they can help your business with their connections and network, help you work through issues, bring in their inputs, and open doors with partners and investors that would usually be closed.

That doesn’t come from nothing, of course. Companies must prove their worth, show progress every week, and the traction an advisor expects for them to stay on board. That often also means that the advisor is compensated or has a stake in the company.

This will close in 0 seconds

Job Discription:

Advisors are the bloodline of many modern startups. Not only do they often add fancy names to your team page, but they can help your business with their connections and network, help you work through issues, bring in their inputs, and open doors with partners and investors that would usually be closed.

That doesn’t come from nothing, of course. Companies must prove their worth, show progress every week, and the traction an advisor expects for them to stay on board. That often also means that the advisor is compensated or has a stake in the company.

This will close in 0 seconds

Job Discription:

Advisors are the bloodline of many modern startups. Not only do they often add fancy names to your team page, but they can help your business with their connections and network, help you work through issues, bring in their inputs, and open doors with partners and investors that would usually be closed.

That doesn’t come from nothing, of course. Companies must prove their worth, show progress every week, and the traction an advisor expects for them to stay on board. That often also means that the advisor is compensated or has a stake in the company.

This will close in 0 seconds

Job Discription:

Advisors are the bloodline of many modern startups. Not only do they often add fancy names to your team page, but they can help your business with their connections and network, help you work through issues, bring in their inputs, and open doors with partners and investors that would usually be closed.

That doesn’t come from nothing, of course. Companies must prove their worth, show progress every week, and the traction an advisor expects for them to stay on board. That often also means that the advisor is compensated or has a stake in the company.

This will close in 0 seconds

Job Discription:

Advisors are the bloodline of many modern startups. Not only do they often add fancy names to your team page, but they can help your business with their connections and network, help you work through issues, bring in their inputs, and open doors with partners and investors that would usually be closed.

That doesn’t come from nothing, of course. Companies must prove their worth, show progress every week, and the traction an advisor expects for them to stay on board. That often also means that the advisor is compensated or has a stake in the company.

This will close in 0 seconds

Job Discription:

An Accountant helps businesses make critical financial decisions by collecting, tracking, and correcting the company’s finances. They are responsible for financial audits, reconciling bank statements, and ensuring financial records are accurate throughout the year.

This will close in 0 seconds

Job Discription:

An Accountant helps businesses make critical financial decisions by collecting, tracking, and correcting the company’s finances. They are responsible for financial audits, reconciling bank statements, and ensuring financial records are accurate throughout the year.

This will close in 0 seconds

Job Discription:

An Accountant helps businesses make critical financial decisions by collecting, tracking, and correcting the company’s finances. They are responsible for financial audits, reconciling bank statements, and ensuring financial records are accurate throughout the year.

This will close in 0 seconds

Job Discription:

An Accountant helps businesses make critical financial decisions by collecting, tracking, and correcting the company’s finances. They are responsible for financial audits, reconciling bank statements, and ensuring financial records are accurate throughout the year.

This will close in 0 seconds

Job Discription:

An Accountant helps businesses make critical financial decisions by collecting, tracking, and correcting the company’s finances. They are responsible for financial audits, reconciling bank statements, and ensuring financial records are accurate throughout the year.

This will close in 0 seconds

Job Discription:

An Accountant helps businesses make critical financial decisions by collecting, tracking, and correcting the company’s finances. They are responsible for financial audits, reconciling bank statements, and ensuring financial records are accurate throughout the year.

This will close in 0 seconds

Scroll to Top