HR Compliance 

A Guide to Statutory Compliance in HR & Payroll.  Statutory compliance in HR refers to the legal framework which organizations must abide by with respect to the treatment of their employees. Most of your company's time and money goes into ensuring compliance to these laws.

What is the role of HR compliance?

The HR function is at the center of most employers' efforts to identify, hire and retain the people the organization. It needs to execute its strategy and achieve its goals. But the human resource function is a key player within the organization's compliance structure as well

Why is HR compliance important?

The Human Resources Chief must hire and retain individuals that are knowledgeable about HR specific laws and are able to create appropriate policies and procedures. ... Outside of these core responsibilities, the Human Resources Chief plays an important role in working with the compliance, legal and auditing offices.

What is the statutory compliance in HR?

Statutory compliance, in HR, refers to the legal framework within which organizations must operate, in the treatment of their employees. Every country has several hundreds of federal and state labour laws that companies need to align with

What does an HR compliance manager do?

A compliance manager is a professional that keeps the legal and ethical integrity of a company intact through policy enforcement and program planning. He or she makes sure all departments of a business are complying with the rules and regulations the company upholds.

What does compliance mean in HR?

Human resources compliance is a necessity for any business in today's legal environment. Between the Fair Labor Standards Act (FLSA), OSHA, sexual harassment, and antidiscrimination laws, a business that isn't aware of its HR responsibilities is headed for trouble. When done correctly, HR compliance is a process.

What is the meaning of compliance in HR?

HR Compliance. A business that isn't aware of its HR responsibilities is, clearly, headed for trouble. HR compliance is a process; and there are several rules, laws and acts to consider, such as the Fair Labor Standards Act (FLSA), OSHA, sexual harassment, antidiscrimination laws, and more.

What is human resources compliance?

The human resources (HR) function is at the center of most employers' efforts to identify, hire and retain the people the organization needs to execute its strategy and achieve its goals. But the HR function is a key player within the organization's compliance structure as well

What is compliance audit?

A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines. Independent accounting, security or IT consultants evaluate the strength and thoroughness of compliance preparations.

What is statutory compliance example?

Statutory means "of or related to statutes," or what we normally call laws or regulations. Compliance just means to comply with or adhere to. So statutory compliance means you are following the laws on a given issue. The term is most often used with organizations, who must follow lots of regulations.

Here are five basic principles organizations should follow to help achieve these goals:

1. Hiring the Right Talent – Hiring the right talent within the HR function’s area of responsibilities (compensation, employee benefits, legal requirements, talent management) is one of the most important issues for organizations today.  The HR function must have the knowledge, skills and experience, or be able to access it through third-party relationships.
2. Proper Education and Training – The talent in the HR function must be well versed in employment law and the regulatory/legal requirements that can affect an organization at anytime.  These laws and requirements are changing all the time and its imperative for the HR function to stay apprised of the latest information available.
3. Create an Employee Handbook and Update it Regularly – An organization’s Employee Handbook is one of its most important documents.  The Employee Handbook is a communications tool that should clearly articulate the organization’s policies and procedures and how business should be conducted.  It is a best practice to have legal counsel review the handbook and any new policies and procedures before distribution.
4. Conducting Scheduled HR Compliance Audits – Many HR functions are typically understaffed and overworked.  As noted, non-compliance can be the basis for financial and reputational risks for organizations.  Conducting scheduled HR compliance audits should be a part of an organization’s overall strategy to avoid any legal liabilities.
5. Communicate, Communicate and Communicate – The HR function is a critical component of an organization.  Whether there are compliance issues or not, it is critical for the HR function leaders (CHRO, VP of HR, etc) to keep other executives up to speed on potential HR compliance risks and recommended remediation.

These steps will help the HR function take a large step to achieving its goal of maintaining HR compliance for the overall organization.