What are statutory compliance in hr.

To understand Statutory Compliance in Human Resource one must understand what Compliance is. Compliance is the process by which HR’s ensure that an organisation is following the latest labour laws, employment regulations and internal company policies related to the Human resources. By adhering to compliance an organisation can fulfill the legal requirements that concern the employees.

Statutory compliance is a type of Compliance in HR. Statutory  Compliance is concerned with adhering to government mandated labour laws which includes the likes of Minimum Wages Act, EPF Act, and ESI Act.

There are several important aspects that Statutory Compliance focuses on some of which are:

• Compensation Laws:

Statutory compliance adheres to Wages and Compensation Laws, under this are the likes of :

1. Minimum Wages Act, 1948 which ensures that employees should receive at least the particular minimum wages that are set by the government.
2. Equal Remuneration Act, 1976 this act was made to ensure equal pay for men and women for the same work.
3. Payment of Wages Act, 1936 this act was made to deal with the regulation of wages to the employees.
4. Equal Remuneration Act, 1976 this act was made to ensure equal pay for men and women for the same work.

• Benefits:

Several other acts were brought into force to provide benefits and social security to the employees. Some of the laws that help the government to do so are:

1. Employees’ Provident fund Act, 1952 is a mandatory provident fund where both employer and employee contribute.
2. Employees’ State Insurance Act, 1948 is a medical and health benefits act for employees.
3. Payment of Gratuity Act, 1972 those employees with at least 5 years of service receive this gratuity payment.

• Policies:

Several policies that outline working hours and Leaves have been brought into act over the course of several years. One of the acts that concern the same are:

1. Factories Act, 1948 helps fix and apply legal working hours, rest intervals, and safety in workplaces like factories.
2. Shops and Establishment Act, it is designed to regulate the payment of wages, hours of work, leaves and other work conditions of people concerned with businesses.

• Security and Welfare:

Health, Safety and welfare are common concerns of several employed individuals. Hence it is important to outline Acts and laws that protect an individual in work places:

1. Occupational Safety, Health and Working Conditions Code, 2020 is designed specifically to ensure safety standards in workplaces.
2. Maternity Benefit Act, 1961 helps female employees get maternity leaves and benefits when needed.
3. The Sexual Harassment of Women at Workplace(Prevention and Redressal) Act, 2013 has made it mandatory for organisations to have policies that prevent workplace harassment.

• Taxing Laws:

With all the income generated one as an individual whether it be an organisation or an employee adhering to the Tax laws is important which brings in acts that protect and ensure the same:

1. Income tax Act, 1961 this act helps govern tax deduction from the employees Salaries.
2. Professional Tax Act, this imposes professional taxes on employees who are salaried.

For an individual who is giving their precious time to an organisation by helping it grow it becomes important that they are protected in their working environments regardless of their gender, caste and race.

Statutory compliance is an important duty to be fulfilled by the HRs. maintaining and complying to these laws and acts allows an organisation to avoid any legal action against them. It brings trust in the employees and those who are the future.