HR compliance is the process of aligning laws and policies of the workplace with those of the city, country, and the world. It is intended to sync the industry-specific regulations with laws and policies. It involves the enforcement of certain practices to follow these regulations.
Compliance is a critical function of an HR department, where the management is asked to ensure that hiring practices, workplace rules, treatment of employees, and other related factors comply with the law. Internally, companies also outline their own policies that need to be followed by employees within the office premises.
Typically, an HR compliance officer takes charge of handling these regulations. He is the one who ensures that the company is up to date and compliant at all times. He remains at the center of a smooth-functioning organization, from retiring the outdated practices to implementing futuristic action plans.
This process often works alongside a company’s legal team so that the law and standard are concluded and implemented correctly. It also encompasses the learning and development department for fostering a sense of compliance in the workforce and training them on compliant practices.
Be it new laws replacing the old ones, a landmark judgment setting a legal precedent, or topical events calling for a pivot in compliance practices, some factor changes, what may come. However, these factors apart, there are certain key terms that are imperative to consider when adhering to compliance mandates.
Statutory Compliance
It entails the obedience of legislations set by the local, state, and federal government. This law states the minimum working age, minimum wage per hour, anti-discrimination law, and more. But this can vary from country to country.
Regulatory Compliance
It is similar to the statutory law but with a little difference which is a specific regulatory body that sets it. Specific mandates like a safe work environment and prevention of accidents or health hazards are part of this legislation, without following which you can face criminal charges.
Contractual Compliance
Be it payroll employees, hourly workforce, interns, or white-collar freelance consultants, every employment is modeled and governed by a contract. This contract typically includes a notice period, severance package, employee stock option, and et al.
Union Law Compliance
Unions are groups of workers engaged in a similar industry in a specific region who are also working together to protect employee rights. By adhering to this law, employees’ satisfaction can be ensured.
HR Technology Compliance
The company has to be certain that its HR technology platforms are compliant with a host of regulations. Generally, it is included in the service-level agreements between the company and the vendor of its HR software.
Internal Compliance
It means outlining and enforcing the internal policies, which often reflect regulatory and statutory laws. This compliance helps ensure that broader regulatory guidelines are followed in practice and not just in theory.
Training Compliance
Professionals like nursing, social care, and manufacturing equipment come with their individual set of training laws. Therefore, companies leverage their employee training tracking software to ensure they meet these legislative regulations.
International Labor Law
This law is headed by the International Labour Organization (ILO) and coordinated with other agencies. It sets certain standards that often inspire regional regulations. Fundamentally, it covers an individual’s right to work, the rights of a child, elimination of all forms of discrimination against women, etc.
Country-Specific HR Compliance
Every country forms its own HR compliance rules and regulations. That’s why you must have seen varied retirement ages and the minimum age to start work in different countries. Global companies ought to follow this law while formulating their policy guidelines and avoid non-compliance risks and substantial penalties.
Workplace Compliance
Last but not least, workplace compliance is the internal body of rules governing employee behavior in the office premises. It incorporates mandatory working hours, the mandatory volume of work, mandatory breaks, the appropriate dress codes, non-discriminatory behavior, policies around working from home, and more.
