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How to Select the Right Labour Law Compliance Partner for Your Company?

Many businesses do not realize how many different types of labour laws and regulations they need to comply with. Especially post COVID-19, the challenges have aggravated.

For smaller businesses/companies, this can be a bigger challenge as they may not have the resources to employ someone internally to focus just on labour and employment issues. However, larger companies can also face this problem with a global workforce. You then need a partner with the infrastructure to cover all different laws in multiple jurisdictions.

To understand the ins and outs of labour law compliance, you need a legal partner that’s not afraid to roll up its sleeves and get to work. But how do you know which law firm is the right fit for your company? Here are some pointers.

  1. Technology

    If you intend to choose a Labour Law Compliance partner, you must consider the technology and technical expertise they have to offer. The technology offerings make a big difference in terms of providing efficiency and convenience while at the same time giving you the best value for your money. There are so many technological solutions that you need to look closely at before making your choice. Look at their technology portfolio and consider how well they can use it to help you manage your compliance needs.

    The best software will enable you to meet all compliance requirements efficiently. You will find many options available on the market, but not all of them provide the same quality of service or even the same benefits.

    Once you have selected a provider, you must ensure that their technology is up -to-date and allows for easy integration with your existing systems. This means that if something goes wrong with your systems or any problem with the software, this can be easily solved without having to make expensive updates to your systems. It also makes sense to consider how they will handle maintenance and updates, when necessary, as this is often overlooked by many companies who take advantage of cheaper alternatives.

  2. Scalability

    Your company will change over time. If you hire a compliance firm that only caters to small businesses, you’ll have to find another partner when you grow big enough (and who knows if they’ll be able to handle your new needs).

    Look for a partner that can scale with you no matter how much your company grows or changes. Ensure that your vendor of choice is committed to being with you on this journey and can adapt their service offerings as you grow. For example, if your existing payroll provider cannot manage statutory compliance functions or if they cannot support additional entities in other geographies etc. , then they might not be the right fit for your growing business needs.

  3. Automation

    The complexity of labour laws in India makes it difficult for employers to ensure compliance. This is especially true for companies that have employees in multiple states because the labour laws are not only different across states but also industries.

    The best way to ensure compliance is by automating the process. A simple solution can be designed to capture all the necessary employee information and update it on a real-time basis. The system should also be able to generate periodic reports, such as attendance records and payslips, automatically. You should choose a partner who has experience in implementing such solutions.

  4. Knowledge and Expertise

    Labour law compliance is a complicated and often tricky task for many businesses, especially small and medium enterprises. It is even more challenging for organizations that have employees in multiple states.

    While there is no doubt that labour laws are in place to protect the interests of employees, they can be very complex and confusing. That is why many businesses seek the help of various regulatory compliance providers and consultants.

    The first step is to conduct due diligence and consider the expertise of the labour law compliance services provider. You can gauge their skills by speaking to a few people who have used their services. You can also check the company’s client base and its reputation in the industry.

    Another way to ensure that your partner has enough expertise is to go through their service catalog. Also, it is advisable to go through the document checklist provided by them to understand how well they know about documents required under various labour laws.

  5. Support & Security

    It is the most crucial factor when selecting your labour law compliance partner. It is easy to find a partner who will provide you with a tool that meets all your requirements, but what happens when things go wrong? Does the partner have a dedicated support team to help you fix errors or resolve issues? Is there someone from their end who will assist you in case of an inspection? As most of you know, inspections can be very stressful, and it helps to have a partner who can assist you during this process.

    You also need to ensure that this data is protected and secure with your partner. You also need to ensure that the provider follows best practices in its security systems, including physical security, cyber security, etc.

  6. Cost-effectiveness

    The cost of the service is a crucial factor. When you’re considering different labour law compliance partners, the first thing you need to do is check their prices. What will they charge you per month? How much will they charge you to provide the legal documents you need? The fees charged by different labour law compliance providers can vary greatly.

    This can be due to the size and location of their business. Some labour law compliance companies may also offer more services than others, which may increase their fees. One way of getting the best deal is by requesting quotes from multiple labour law compliance providers before settling on one.

  7. Track record

    The company’s track record is one of the most important things you need to consider. You need to make sure that whether the concerned firm has experience in handling similar requirements for other companies in your industry or companies similar to yours. The track record will help you understand whether they have the adequate skills and knowledge to handle your business requirements.

    This will give you an idea of how well they perform in real-life situations. If they do not have any clients who can vouch for them, this is a red flag. You should also make sure that their team members are qualified enough to handle your company’s needs.

    Ensuring compliance is complicated. But with a strong and knowledgeable labour law compliance partner, things can be easier. Select one with the experience, knowledge, and reputation to ensure your company’s success.