Organizations often worry about dealing with legal issues related to statutory compliance. And there have some strict rules and regulations that ensure the organization runs smoothly to handle its responsibilities. Any organization doesn’t have any intention of violating laws, but there are possibilities of loopholes in it.
Let us figure out the need for statutory compliance in the organization in India
What is statutory compliance?
Statutory compliance is the legal structure or framework that a company must abide by itself regarding the treatment of employees.
Basically, an organization should treat its employees concerning various state and central laws in India. This will protect the employees, employer, and the organization.
Statutory compliance in India
There is a list of statutory compliance in India reference to HR for any organization. All the labor laws and taxation laws come under statutory compliance.
- The Child Labor (Prohibition & Regulation Act), 1986
- Inter-State Migrant Workmen( Regulation Of Employment & conditions Of Service ) Act, 1979
- The Equal Remuneration Act, 1976
- The Payment Of Gratuity Act, 1972
- The Contract Labor (Regulation & Abolition) Act, 1970
- The Payment Of Bonus Act, 1965
- The Apprentices Act, 1961
- The Employment Exchanges(Compulsory Notification Of Vacancies) Act, 1959
- The Employees Provident Fund & Miscellaneous Provisions Act, 1952
- The Factories Act, 1948
- The Minimum Wages Act, 1948
- The Employees’ State Insurance Act, 1948
- The Industrial Disputes Act, 1946
- The Industrial Employment Standing Orders Act, 1946
- The Payment Of Wages Act, 1936
- The Trade Unions Act, 1926
- The Workmen’s Compensation Act, 1923
Importance of the statutory compliance
Every country has its own set of labor laws and rules that all companies must follow for the welfare of the organization and its employees. Companies need to be updated with all the latest regulations in their country.
· A set of predefined rules is easy for the government to collect taxes, and revenue and for the companies to focus on their financials & operations.
· Regardless of business size and structure, statutory compliance is essential to keep their businesses free from legal troubles.
· It helps employees to protect themselves from the inhuman behavior of the employer. It ensures the fair treatment of labor, preventing employees from exploitation.
· It can save companies from penalties/fines due to violation of rules.
· Statutory compliance in an organization can prevent themselves from the unwanted demands of employees or trade unions like wages, extra benefits, and other allowances.
Wrapping up
Any business cannot ignore statutory compliance, which leads to penalties or court trials. And even spoil the goodwill of the company in the industry. To solve this issue, a company can hire or outsource professionals. Hale human capital is the best organization for providing statutory compliance for organizations of any size and sector.
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