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7 Ways to Ensure Compliance with Labour Laws

Hiring new employees is indicative of a growing business landscape. However, it also brings with it a host of compliance and regulatory responsibilities. Businesses need to be aware of all the policies, rules, and regulations that might be applicable and take care of compliance too.

This is where the emphasis on  labour law compliance   comes into play. Labour laws are a detailed set of rules at the central and state level laid out to protect the employees’ rights. Compliance with these laws is essential to safeguard employees against wrongdoings and keep financial and operational risks at bay.

Why Are Labour Laws Established?

Labour laws act as tools to enable workers’ empowerment and promote workers’ protection. They are established to regulate and maintain individual and collective employment relations. More profoundly, labour laws work to:

  1. Maintain a balance of power between employer and worker
  2. Prevent the employer from dismissing the worker without a reason
  3. Create a process by which workers have equal participation in discussions about the working environment, etc.
  4. Prevent a race to the bottom by imposing restrictions on employers’ contracts and terms and setting minimum standards for safety and pay.

7 Ways to Ensure Compliance with Labour Laws

Maintaining compliance with state and labour laws can be challenging. Ideally, employers should keep a check on the actions that are necessary to stay in compliance and avoid headaches later on. Reducing the potential consequences of non-compliance at the workplace requires that all employees adhere to certain rules set out by the organization. Here are seven ways to ensure compliance with labour laws.

1. Perform Job Discrimination Audits

Being a business owner, one must know that discriminatory practices can lead to employee grievances, which can further prove very costly for the business. While the human resource and employment practices must be in place, it is always better to carry out  labour law compliance audits   . This makes sure that the business isn’t letting discrimination creep in and that there are no loose ends which may eventually let the problems transpire.

2. Utilise an Employee Agreement

Whether hiring full-time staff or engaging someone to work part-time, there should always be an employment agreement or a contract that can legally strengthen the employment relationship.

3. Make an Employee Handbook

Creating an employee handbook might take some initial research and time, but it can prove to be an invaluable asset for an employment relationship. An employee handbook can contain helpful information about the rights, benefits, policies, and procedures. As such, it can help prevent legal disputes, provide insight into the company culture and the associated values, and formalize the company policies.

4. Create a Checklist of Compliance

Businesses must put together a compliance checklist that has the required information to ensure that potential risks are avoided and that the business is protected legally. This can help the business stay determined to take action in case of non-compliance and further introduce interventions such as training, education, and communication in case any issues are found.

Read: 9 Areas Where A Dedicated Compliance Manager Can Save You Time (And Money)

5. Know Which Labour Laws Affect Your Business

To make the business compliant, one must know which labour laws affect influence the operations. Thorough knowledge is required to avoid any confusion in case of non-compliance

Here’s a list of 15 labour laws that every business must be aware of.

6. Document Policies and Procedures

Everything important to the business should be documented as policies and laws in a handbook. Creating policies from scratch and documenting them can be overwhelming, but once laid out, they can be of immense use each time an issue arises.

7. Reinforce with Training

Employee training is one of the most effective ways to ensure compliance with labour laws. Training helps employees understand their rights and company policies and procedures. It can be conducted occasionally to revisit compliance procedures and policies.

Note: In addition to national laws, each state has its labour laws. Gather some information from your state’s local agency’s websites and understand state requirements concernings employment.

Why Is Working with a Partner Important?

Even after putting a lot of effort into ensuring labour law compliance, administering adherence to the rules and regulations can be difficult. Meetings with stakeholders, managing notices, dealing with government agencies, etc. – everything needs to be taken care of. Businesses often don’t have the time and resources to manage all these tasks. What they need is a dedicated compliance manager with knowledge and experience in managing all these aspects.

At Coreintegra, we can help your company maintain compliance with labour laws with the use of disruptive technological solutions. Coreintegra features India’s largest compliance solution platform for effective labour law compliance management. Here is why it is important to use technology to manage your labour law compliance.

For more information about our offerings, get in touch with an expert today!