What business compliances HR needs to follow

The HR team handles a variety of compliance issues related to the employees from recruiting them to their retirement. HR managers have an important role to play in shaping how a company grows. 

Though it may not seem so, law has an important role in what a HR team does. Say for example, hiring is done through contracts or possible negotiations. Similarly, firing an employee requires a different contract, ensuring that a proper disciplinary proceeding took place in case the employee was fired for a breach of contract, or any other reason such as sexual harassment, etc. 

HR compliance

• HR compliance could be defined as the process of aligning the policies of the workplace with the country’s, state or local laws in sync with the industry specific regulations. 
• Compliance is one of the critical functions of a HR department. They are tasked with making sure that hiring practices, workplace rules and other various factors comply with relevant laws. 
• HR compliance often works with a legal team so that the regulations and the laws are properly followed as well as interpreted correctly. 

Following mentioned are some of the key points which should be taken note of when adhering to compliance mandates-

Statutory Compliance

It means compliance to the legislations set by the local, state or federal governments. The employees are legally mandated to follow the legal provisions, if not which may result in criminal charges against the wrongdoers. 

These include minimum working age, minimum wage per hour, anti- discretion laws, and other similar compliances. 

Regulatory Compliance

Though it could be sometimes similar to statutory compliance, the difference is that a specific regulatory body sets it. Similarly, failure to follow the regulatory compliance may result in criminal charges. 

Contractual compliance

It involves the adherence to the contractual agreement formed when an employee is hired. The agreement of the contract could include clauses such as notice period, a severance package, an employee stock options, etc. In case an employer does not abide by his contract, it could be handled through a civil suit. 

HR technology compliance

The growing use of the technology makes it important to pay attention to the technology compliance. 

Internal compliance

It is the outlining as well as enforcement of the internal policies, which reflect statutory and regulatory laws. Say for example, the Labour Law in France provides for a 35 hour workweek. Thus, companies having offices in France, provide for a 4 day workweek. This internal compliance ensures that broader regulatory guidelines are actually followed and are not merely in theory. 

Training

Some industries require their employees to mandatorily be trained in some specific field. Necessary steps are required to be taken for the same.

International labour law

It is a body of rules covering a number of regulations related to the rights and the duties of the employees, employers and the governments, which is headed by the International Labour Organisation, in coordination with other agencies. The standards set by the International labour law are often the setting ground for the local laws. Fundamental conventions cover an individual’s rights to work, right of a child, ending the elimination of all forms of discrimination against women and likewise

HR compliance specific to the country

A country could make its own HR compliance regulations, for example, recently France implemented the Right to Disconnect, which applies to a company with employees more than 50 in number. Also, the age of retirement as well as minimum age to start work vary from country to country. The companies working at global level are required to keep these details into account while formulating their policy guidelines.

Workplace compliance

It refers to the internal body of rules which oversees the behaviour of the employee in the workplace. This may relate to statutory or regulatory norms and to make sure that these are properly followed. Issues such as mandatory work hours, the amount of work, policies related to work from home, issues including dress code, non-discrimination with the employees, and similar other issues fall under workplace compliance. 

Conclusion

The above-mentioned are some of the HR compliances which are necessary for the proper functioning of a company. The peaceful and efficient working of a company is based on the HR department of the company mostly. It is the link between the employees and the employers. Hence, it is important to understand that compliance is among critical functions of a HR department. 

Lead India offers you a team of experienced advocates who have years long experience in successfully handling cases related to the corporate law. In case you have issues involving corporate field, you may contact us to ask legal questions or assistance.