We’ve covered a whole range of topics related to the full cycle of Recruitment and dealing with the various processes involved right from the immediate contact stage and onboarding stage. But have you considered the Role of HR in Company Compliances?

But if not then, you’re in luck we @SourcingAdda will be covering this topic soon. Thanks to our Gujarat group member Vaishali who wanted to discuss, “What is the role of HR in Compliances when HR’s are not involved in company Compliances?” but before we proceed with the discussion remember to view the key take away pointers right after to facilitate learning. Therefore let’s begin…

Now there you have it, the conversation that took place and after reviewing the information shared you’ll agree that we’ve got interesting insights. So let’s enhance our learning by viewing the key take away pointers so here goes…

What Are Compliances

• It is necessary to go back to the books to find out the aspects that one needs to consider and pay attention to the motivational factors.
• Compliances are hygiene i.e. a set of rules and regulations that all parties involved need to know and follow, for instance, the maternity leaves are hygiene but you can add more work from home and other privileges to make it a motivational factor.

Who decide the Compliances and their Purpose

• Compliances are defined by senior HR bodies / HR directors for the smooth functioning of the organization.

Role of HR in Compliances

• The role of HR persons is to help in developing a uniform implementation of the same and making everyone aware of the compliances.

Responsibility of Compliances lies with whom?

• Compliance is everyone’s responsibility besides it’s not only for the Head of Finance or Head of HR or MR.

Who should view the Compliances?

• Talent Acquisition
• HR
• Head of Finance
• Head of HR
• MR
• Therefore it is important for such individuals as mentioned above to refer to –
• 3.2 and 4.5.2 clauses of 9001:2015

Specific to HR

• As an HR you must have an in-depth knowledge about –
• Factory Act 48,
• Minimum Wages 36,
• Maternity 61,
• Child Labour 87,
• Apprentice 61,
• Bonus 65,
• Gratuity 65,
• Contract Labour 70,
• PF 52

HR in a factory environment

• Especially if they are into the factory environment there is no harm if corporate HRs additionally know about –
• Company Act 63
• Shop & Establishment Act
• Cyber Security Policy

Current Scenario

• Most companies follow their own rules and regulations
• Most HR functions are usually understaffed hence they are overworked
• From the HR side companies need to implement the rules but majorly sales head and finance heads decide the rules and compliances that companies need to carry out
• Usually, the HR is directly involved in such process and they need to realize that this is their cup of tea

Important of Compliances & Non – Compliances

• Non-compliance can have an impact on the financial and reputational risks of organizations
• Besides the HR function is one of the critical components of an organization
• Irrespective of whether there are compliance issues or not, it is important for the HR function leaders (CHRO, VP of HR, etc.) –
• To keep other executives up to date on potential HR compliance risks
• As far as possible recommend remediation where ever applicable

When to conduct Compliance Audits?

• Therefore conducting HR compliance audits at regular intervals should be a part of an organization’s overall strategy to avoid legal liabilities arising.

Beyond Compliance

• Going beyond Compliance HR could play a pivotal role in ensuring that the organization adheres to the best practices of Corporate Governance.

Well, the aspects mentioned above have covered all the aspects that the decision-makers need to be aware of to prevent financial and reputational risks for organizations. If you’ve read this far then you certainly found something worth your while hence let’s ensure that you keep learning by being an active learner. How? That’s easy; simply follow these 2 simple steps –

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