Why statutory compliance is required in organization

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Organizations often worry about dealing with legal issues related to statutory compliance.
And there have some strict rules and regulations that ensure the
organization runs smoothly to handle its responsibilities. Any
organization doesn’t have any intention of violating laws, but there are
possibilities of loopholes in it.

Let us figure out the need for statutory compliance in the organization in India

What is statutory compliance?

Statutory
compliance is the legal structure or framework that a company must
abide by itself regarding the treatment of employees.

Basically,
an organization should treat its employees concerning various state and
central laws in India. This will protect the employees, employer, and
the organization.

Statutory compliance in India

There is a list of statutory compliance in India reference to HR for any organization. All the labor laws and taxation laws come under statutory compliance.

  • The Child Labor (Prohibition & Regulation Act), 1986
  • Inter-State Migrant Workmen( Regulation Of Employment & conditions Of Service ) Act, 1979
  • The Equal Remuneration Act, 1976
  • The Payment Of Gratuity Act, 1972
  • The Contract Labor (Regulation & Abolition) Act, 1970
  • The Payment Of Bonus Act, 1965
  • The Apprentices Act, 1961
  • The Employment Exchanges(Compulsory Notification Of Vacancies) Act, 1959
  • The Employees Provident Fund & Miscellaneous Provisions Act, 1952
  • The Factories Act, 1948
  • The Minimum Wages Act, 1948
  • The Employees’ State Insurance Act, 1948
  • The Industrial Disputes Act, 1946
  • The Industrial Employment Standing Orders Act, 1946
  • The Payment Of Wages Act, 1936
  • The Trade Unions Act, 1926
  • The Workmen’s Compensation Act, 1923

Importance of the statutory compliance

Every
country has its own set of labor laws and rules that all companies must
follow for the welfare of the organization and its employees. Companies
need to be updated with all the latest regulations in their country.

·
A set of predefined rules is easy for the government to collect taxes,
and revenue and for the companies to focus on their financials &
operations.

·
Regardless of business size and structure, statutory compliance is
essential to keep their businesses free from legal troubles.

·
It helps employees to protect themselves from the inhuman behavior of
the employer. It ensures the fair treatment of labor, preventing
employees from exploitation.

· It can save companies from penalties/fines due to violation of rules.

·
Statutory compliance in an organization can prevent themselves from the
unwanted demands of employees or trade unions like wages, extra
benefits, and other allowances.

Wrapping up

Any
business cannot ignore statutory compliance, which leads to penalties
or court trials. And even spoil the goodwill of the company in the
industry. To solve this issue, a company can hire or outsource
professionals. Hale human capital is the best organization for providing
statutory compliance for organizations of any size and sector.

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Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
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