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Human Resource Compliance Checklist: 5 Different Types Of Compliance

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HR compliance is a crucial requirement for sustainable business, ensuring employees’ well-being and avoiding penalties. It is typically a process of aligning workplace policies with the labor laws and industry-specific regulations of a specific region. The HR department must ensure that recruiting practices, workplace rules, and other HR-related factors comply with the relevant laws. Managing the HR compliance landscape is proven to be a challenging task. For better HR compliance management, it’s essential to comply with different types of necessary compliance within HR. This article talks about different types of compliance a company needs to adhere to.

  • Statutory compliance

Statutory compliance involves complying with legislation specified by the local, state, and federal governments. All companies mandate their employers to follow statutory compliance, without which they could be liable to penalties or criminal charges. Statutory compliance comprises the minimum working age, anti-discrimination laws, minimum wage per hour, and other related regulations. However, they can vary from country to country, making country-specific HR compliance management crucial.

  • Regulatory compliance

Many companies think of statutory and regulatory compliance as the same, but the difference is that a regulatory body sets the latter. For instance, the Occupational Safety and Health Administration in the United States set the regulations for a safe work environment and prevention of health hazards or accidents. A company can face criminal charges or penalties if it fails to maintain regulatory compliance.

  • Contractual compliance

Contractual compliance involves companies adhering to the contractual agreement on recruiting a worker. From hourly wage workers to interns and payroll employees, every employment model is governed by a contract between the company and the employee. The agreement usually includes clauses related to the notice period, a severance package, a tenure-based bonus, employee stock options, and more. A company not maintaining contractual compliance could be open to a civil lawsuit.

  • Union law compliance

The National Labor Relations Act states the provisions for the group of workers engaged in a similar industry (labor unions) Companies adhering to the union law compliance are equipped with satisfied workers with no feeling of discontentment among the workforce.

  • HR technology compliance

The advancement in HR technology makes it challenging for companies to pay special attention to HR technology compliance. It is a must for HR technology platforms to comply with the regulations, including employee data rights. In addition to this, the Health Insurance Portability and Accountability Act (HIPAA) requires companies to protect the health information of employees. Typically, the service-level agreements between a company and an HR tech supplier comprise HR technology compliance.

Conclusion

On the surface, maintaining HR compliance might seem all about following protocols and rules- but digging deeper, HR compliance can shape the employee experiences and the workplace. Since HR compliance is an evolving concept, companies should anticipate critical issues and find ways to tackle them for effective HR compliance management. By leveraging HR compliance as an employee-centric tool, companies can efficiently build a positive work environment where employees are respected, feel comfortable and safe, and are motivated to contribute to the business.

Remi Bridger

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