Various factors hold together a business or a company, but one of the biggest factors is the employees working in it.
No company can operate without staff and employees that are present to fulfill every goal in different departments.
Statutory compliance services help small startups and companies work effectively by making different compliance for their employees.
Statutory compliance must be streamlined and structured with perfect rules and regulations for the company to work properly.
These rules and regulations include all the framework and aspects of the organization in addition to the relationship of the company with its finances as well as staff.
Statutory compliance for companies in India is a framework conserving a corporation or a company to operate as per their employees and workers. HR mainly provides these services and is genuine as well as legal.
Statutory Compliance
Typically compliance is a term that is used to define following a rule, set up, or order.
However, it also means that in a workplace such as an organization or a company, the practices are limited within the rules as well as laws defined by the constitution.
There are various labor laws that come under statutory compliance. Therefore, every business entity and company in India must strictly follow these laws.
If these losses are not followed, there can be very difficult legal penalties. There are also many sets of rules and HR policies for the entire management as well as the functioning of workers in an organization.
There are various types of HR policies in India. These policies include non-discrimination policies, contract policies, code of conduct policies, workplace harassment policies, termination policies, wage policies, communication policies, work culture policies, maternity leave policies, PF policies, appreciation policies, etc. These policies will be discussed below.
Why are Statutory Compliance Services important?
Without statutory compliance in a company, it would be unable to operate properly. The compliance applies to companies, taxation laws, and numerous labor effective in India.
The rules and regulations are ever-changing, but a company needs to comply with the rules at the state and national levels.
If a company fails to comply with rules and regulations, there can be many legal difficulties or penalties that a company might have to face.
That's why every company is invested in compliance services to stay updated about rules and laws.
A company needs to know frequent taxation laws as well as labor laws to stay on track. Statutory compliance services in a company ensure the following aspects are in place:
- The company follows all legal and ethical practices.
- The company has unrestricted access to both regional expertise as well as local expertise.
- The company has expert support from professionals during all inspections and audits.
- The company knows all the regulations and laws irrespective of their timeless change. They should be aware of the latest regulations in force.
- The company must have updated data and documents in a centralized location which should be available instantly when they are wanted.
It can be seen clearly that these services and procedures require a lot of investment of time and money. It also requires efforts from manpower and employers from the company.
Not every company can afford compliance services because they don't want to spend so much money and resources. However, companies need to comply with rules and regulations.
Statutory compliance services from experience sources such as ESPECIA, you and your company can ensure compliance with the latest laws and rules without hiring new workers to maintain a separate HR department.
Benefits of Statutory Compliance Services
One of the most important advantages of statutory compliance services in a company is ensuring that workers and employees get fair treatment.
It also makes sure and protects the workers from being forced to work or abused for more than the required hours in unimmune conditions.
It is also important to ensure that workers are paid equally for their job, and their salary is liable to the minimum rate.
This is also one of the main reasons why every company, small or big, should have statutory compliance services.
It also benefits the company in paying regular taxes with updated rules and regulations.
When the company pays early tax, it prevents a lot of problems, such as penalties and fees.
Therefore these services ensure that every legal difficulty for the company can be avoided.
It also reduces the overhead of labor. It also helps to increase the focus on the departments and business areas that require it the most with strategic parts.
It also makes it easier for the company and the employees to maintain and acquire all the data as well as records accurately and completely with the latest compliance rules.
Labour laws
The main labour laws that should be followed in a company with the latest rules include the following:
- Shops and Commercial Establishments Act (S&E)
- The Professional Tax Act (PT) 1975
- The Labour Welfare Fund Act (LWF) 1965
- The Employees Provident Funds and Miscellaneous Provision Act - 1952 (EPF)
- The Contract Labour (Regulation and Abolition) Act - 1970 (CLRA)
- The Child Labour (Prohibition and Regulation Act), 1986
- The Employees State Insurance Corporation Act - 1948 (ESIC)
- The Minimum Wages Act-1948
- The Interstate Migrant Workmen (Regulation of Employment and Conditions of Work/ Services) ACT, 1979
- The Payment of Gratuity Act-1972
- The Equal Remuneration Act-1976
- The Trade Unions Act of 1926
- The Employees Compensation ACT-1923
- The Industrial Establishment (N&FH) ACT 1963
- The Maternity Benefit Act-1961
- The Industrial Employment (Standing Orders) ACT 1946 (Model Standing Order Only)
- The Industrial Disputes ACT of 1947
- The Payment of Bonus Act-1965
- The Employment Exchange (Compulsory Notification of Vacancies) ACT-1959
- The Payment of Wages Act-1936
- Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) ACT, 2013
- The Factories ACT of 1948
- The Apprentice ACT, 1961
Laws that HR should know
- Sexual Harassment (Prevention, Prohibition and Redressal) Act, 2013
- The Workmen's Compensation Act of 1923
- The Payment of Wages Act, 1936
- The Payment of Gratuity Act, 1972
- The Payment of Bonus Act, 1965
- The Industrial Disputes Act of 1947
- The Employees Provident Fund Act of 1947
- Child Labour Regulations (CLR)
- The Industrial Disputes Act of 1947
- State Wise Factories and Establishments (National, Festival and other Holidays) Act, concerning State wise Factories and Establishments (National, Festival And Other Holidays) Rules
- The Apprentices Act of 1961
- The Factories Act of 1948
- The Employees State Insurance Act, 1948
Main employment laws
- Code of Wages Act 2019
- Maternity Benefit (Amendment) Act, 2017
- Payment of Bonus Act, 1965
- Equal Remuneration Act, 1976
- The Employees State Insurance Act, 1948
Employment rights
Three main employment rights should be known by every worker as well as employer in a company.
These laws ensure that the workers are paid equally, have the right to get minimum wages as mentioned in the minimum wage act and have the right to get a leave.
The provisions in labor laws should be understood carefully. It is important to prevent exploitation as well as the harassment of workers to maintain a healthy work environment, as mentioned in the labor law.
To enforce this law, having a professional or expert in a company for professional advice is important.
The architecture of labor laws compliance is constantly changing in today's time. It takes effort and resources to know all the latest developments in the laws.
Generally, the Human resource department is responsible for providing these services in an organization according to their priorities and needs.
Why ESPECIA for Statutory Compliance Services
The architecture of labor laws in India is constantly evolving. It can be difficult for you to keep in check with all the latest developments to ensure the latest compliance with required legal laws.
At ESPECIA, we offer services and detailed articles about compliance services for businesses and companies to stay up-to-date as well as safe with the framework of legal authorities.
It is absolutely important to ensure that all statutory norms, as well as legal norms for companies, should have compliance to operate in India.
This requires continuous investment of time and resources to know all the changes occurring to avoid penalties.
That's why ESPECIA is here with all the updated information on the business, accounting, legal services, etc., that you are looking for.
We at ESPECIA work as your partner to offer various services according to the needs of customers and clients.
We are highly invested in making companies compliant with labor laws and other necessary regulations to do the best for business entities.
Also Check,
Statutory Reporting- Meaning, Requirements, Examples
Types of Statutory Audit- Objectives & Process
Conclusion
Statutory compliance is a term that is used to define the rules and regulations for a company and to follow them.
It also refers to an organization's legal framework and architecture that employers should follow to deal with their employees. Various laws should be followed concerning Statutory compliance.
Following these laws and regulations is important to avoid legal penalties and difficulty.
It is also important to follow them to reduce risk and chances of employment of employees.
It makes sure that the employees are treated fairly and paid fairly for the work they have done.
It also prevents employees from working for long hours that they are not supposed to do. Customer loyalty is also affected if the laws are not followed.
