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Keeping Businesses HR Compliant
As a business grows, it becomes more and more reliant on both its people and its systems and HR compliance is critical for businesses of all sizes.
By understanding HR compliance needs across key HR business areas such as minimum wage, workplace safety, statutory compliance, and wage and hour laws, businesses can avoid costly penalties and legal action, whilst ensuring hr compliance best practices are delivered.
HR compliance helps to ensure that employees are treated fairly and according to the law. Using a simple hr compliance checklist combined with reliable human resources support, in house HR teams can remain compliant with all applicable employment laws and regulations, businesses can create a positive work environment and protect their bottom line.
About Statutory HR Compliance
As a business owner, it is important to be aware of statutory compliance, employment law and regulations and how it applies to your role. Broadly speaking, statutory compliance refers to the legal obligations and compliance responsibilities that an organisation must adhere to operate legally and prohibit discrimination.
When it comes to HR, this can include complying with legal obligation required for anti-discrimination laws, overtime requirements, equal pay, adhering to immigration laws, Employment Act, ensuring Occupational Safety and Health standards are met, and providing ongoing training for employees. complying with Minimum wage regulations.
To comply with the law, HR leaders must ensure that all policies and practices are up-to-date and in line with applicable legislation. Additionally, you must carefully monitor the hiring process to ensure that only those who are legally allowed to work in the country are hired. Using a HR compliance audit checklist can really help stay on track.
Our expert team of hr professionals can also help you to stay up-to-date on statutory compliance issues and maintain regulatory compliance by putting systems in place to ensure fair payment, holiday allocation, fair recruitment policies, disciplinary measures and other entitlements to protect the organisation from potential legal vulnerabilities.
Are You Responsible For Your HR Compliance?
Business Owners, Chief Executives and HR Directors hold the final legal responsibilities should they be found not to be compliant with existing rules and regulations. If, or when, it comes to legal action, it’s those people who will be brought to account.
As such, having a reliable outsourced HR team or consultants to help inform, advise and strategise with you to create policies that keep you compliant, can be incredibly valuable in getting everyone in the company involved in education, training, and providing feedback to make HR compliance becomes part of company culture, not just an obligation.
From the executive team to the managers to the staff, all levels of the business should be involved in the creation of HR compliant policies and processes, and all should be informed of them when they’re put in place and when they have to be relied on. This helps to ensure employees know what is expected of them with relevant policies and procedures documents.
The Benefits Of HR Compliance
Adhering to HR compliance may seem like hard work but it has it’s benefits too. The main one being that you’re protecting your business from legal action. Non-compliance can be unlawful or illegal, leading to expensive employment tribunals.
For employers, compliance with employment laws and company policies helps to ensure a fair and legal workplace and meeting compliance obligations can help to avoid costly penalties from regulatory bodies.
For employees, compliance with age discrimination laws, for example, can help to ensure that they are not unfairly discriminated against in the workplace.
Additionally, knowing their employee classification (i.e. exempt or non-exempt) can help them to understand their rights and responsibilities at work. Finally, compliance with health administration regulations can help to ensure a safe and healthy workplace for all.
Outsourced HR services - Your HR Compliance Checklist
Our team offers fully outsourced HR services based on simple fixed-fees, that give you full control over your HR.
Additionally, we can also offer access to:
Fully outsourced HR services
Fully outsourced HR services based on simple fixed-fees, giving you full control over your HR.
According to the CIPD, employee engagement is a ‘workplace approach designed to ensure that employees are committed to their organisation’s goals and values, motivated to contribute to organisational success, and are able at work to give their best every day.’
In the UK, there are two main types of employee classification: exempt and non-exempt. Exempt employees are not entitled to the national minimum wage or paid annual leave, and their working hours are not regulated. Non-exempt employees, on the other hand, are entitled to the national minimum wage and paid annual leave, and their working hours are regulated by the Working Time Regulations 1998.
What are regulatory requirements
There are a number of regulatory requirements and HR compliance Laws that employers must comply with, including the Health and Safety at Work etc. Act 1974, Employment Rights Act 1996, The Disabilities Act, the Data Protection Act 1998, and the Equality Act 2010.
Contractual compliance refers to the compliance of an organisation with the terms and conditions of its contracts, for example with suppliers, customers or employees.
There is no legal requirement for businesses to have human resources departments, but many businesses find that having an HR department helps to ensure compliance with employment law and other regulations.
Compliance challenges in the workplace
The main challenges for small businesses include:
- Keeping up to date with changing employment law and regulatory requirements
- Ensuring that employee contracts and other documents comply with the latest legislation
- Providing training for managers on HR compliance issues
- Responding quickly and effectively to employee queries on compliance issues
- Managing risk in the workplace and protecting the business from potential litigation.
The penalties for non compliance with HR regulations can be severe, and can include fines, imprisonment, or both. In some cases, businesses may also be required to pay compensation to employees who have been adversely affected by their failure to comply with the law.