All organizations abide by a set of rules and regulations imposed by local, state, and federal authorities. These rules ensure that the employees and employers work in safe conditions and don’t encounter any legal compliance. Read this blog to learn the important elements of the HR compliance checklist that ensure equity in the organization.
The Occupational Safety and Health Code 2019 applies to organizations with 10+ employees and is centered around the working conditions for employees working in dangerous conditions that involve hazardous chemical and physical elements. All organizations need to comply with the rules of Occupational Safety and Health to prevent accidents, indicate emergency procedures, conduct safety inspections, assess risks, and provide protective equipment to maintain employee well-being.
Compensation and Benefits: Organizations need to comply with compensation and deduction laws to ensure fair payrolls. They must abide by the minimum wage laws that vary across states. The organizations must have proper documentation for payroll which includes all the details such as pay slips, and deductions (tax, EPF, and other allowances). The compensation and benefits compliance also manages the following components.
Employee Provident Fund: Organizations with 20+ employees must register for an
Employee Provident Fund to deduct a specific portion of the employee’s salary
along with equal contributions from the employer.
Employee State Insurance: Organizations with 10+ employees should enroll,
deduct, and allocate a portion of the employee’s salary according to the Employees
State Insurance Act.
Bonus and Gratuity: According to the Payment of Gratuity Act, organizations must
give a yearly bonus to eligible employees when they leave, retire, or pass away.
Tax Deductions and Compliance: The Income Tax Act states that a tax will be
deducted from the employee's salary as per norms and regulations. Further,
the organizations need to provide necessary tax documents so that the employees
can file their tax returns.
Recruitment: The rules for recruitment compliance ensure all the employees get equal opportunities and are treated well in the organization. The Equal Employment Opportunity Act states that organizations must execute the hiring process depending on the relevant qualifications and experience for the job role. The act also ensures no one in the organization is discriminated against based on age, gender, religion, and disability. Also, it is important to ensure all the job posts are transparent and don’t contain any biased content. The screening, interviewing, and onboarding processes must be fair.
Benefits: Organizations must comply with different employee benefits such as medical allowance, leaves, maternity and paternity benefits, and other reimbursement policies. This ensures fair compensation, happy employees, and a low risk of disputes.
Policies and Procedures: The policies and procedures compliance include implementing the legal requirements and internal rules that oversee the conduct, behavior, and practices in an organization. It sets up and enforces policies aligned with the industry standards to nurture a secure, inclusive workforce. Some important considerations policies include:
Frame policies for code of conduct, health and safety, and ethical practices.
Personalize the policies according to the size, industry, and needs of the organization.
Inform your employees about the policies such that they understand them well and
know the repercussions if the policies are violated.
The policies must safeguard the privacy of the employees and align with
data protection laws.
The code of conduct delineates the behavior, ethical norms, and business practices
that the employees must follow.
Make policies that control the usage of technological assets of the organization and
intellectual property to safeguard the interests of employees and employers.
Conclusion: All organizations must understand and follow the above employment laws to guarantee legal compliance, safeguard employee rights, and foster a peaceful workplace.
