Over the years, the Indian government has taken a series of administrative and legislative decisions for the ease of employment and doing business in the country. Among them, the labour laws aim to protect the dignity and rights of the workers’ population against probable exploitation by employers through end-to-end compliance.
A combination of state and central legislations constitute the body of labour laws, and there are about 200 state laws and 50 laws created by the centre under 4 different categories – work conditions, remuneration, social security and employment security.
These labour laws are not static and keep changing from time to time to offer maximum benefits to the workers and trade unions. Running a business, be it a corporate enterprise or a manufacturing unit, in India, can sometimes be quite hectic owing to these changes, as the violation of these labour laws can invite lawsuits and get the trade unions on your tail.
Most of the companies tend to hand over the compliance responsibility to their HR teams, or they hire some part-time consultants for the same. However, it’s best for organisations to hire a dedicated compliance head to maintain compliance with the labour laws and keep such issues at bay.
Let’s take a look at all the reasons why organisations should consider appointing a dedicated compliance manager for their business.
Maintaining compliance can be complicated
Ensuring compliance doesn’t end with following some rules on a government website. It’s much more than that. One needs to hold meetings with the relevant stakeholders regularly, manage notices, and deal with government agencies in case of disputes, check payroll compliances, conduct contractor and vendor audits, ensure data security, create monthly reviews, and handle more such responsibilities. Business owners often don’t have the bandwidth to manage all these tasks. They need the help of a dedicated compliance manager who has the knowledge and experience to manage all such aspects.
Dealing with government officials is not easy
Not wanting to deal with government officials in case of questions or disputes is natural. Business owners may not always have sufficient knowledge to answer their queries, which can invite further trouble. The meetings and proceedings could also take a lot of time, which could hamper the business indirectly. A dedicated compliance manager can handle such matters easily and facilitate seamless communication with government agencies and involve the business owners only when required.
Staying updated with compliance laws can be difficult
Only a dedicated compliance manager can be updated with the regulatory reforms that the government often proposes to adjust with the circumstances and changing working conditions. As a business owner, it is hard to stay up to date with such reforms. Your HR team may also be busy with other aspects of the business, like recruitment, employee onboarding, payroll management, employee engagement, and so on. Only the compliance experts can be of help here as they always keep track of the changing labour law scenario in the country. They can then also update your contractors, vendors and other stakeholders regarding any such change.
You need to trust the knowledge and experience of experts
As a business owner, you have several other responsibilities to take care of, and maintaining compliance with labour laws don’t fall among them. In fact, you may not have the time or whereabouts of the legislation you need to follow or keep track of any amendments. This is not your area of concern or should not add up to your day-to-day activities. Don’t you think it would be better to get legal assistance in this regard without burning a hole in your pocket? After all, the consequences of accidental violations may also incur financial losses in the form of legal expenses, so why take that risk?
In other words, the compliance experts play an integral role in your organisation by making sure you don’t have to take the stress of any unintended dispute concerning the labour laws. They are also able to prevent fraudulent activities in the form of false accusations and allegations that can affect your reputation in the industry. It’s unwise to take the labour laws lightly, as many companies have faced severe consequences before for the same mistake. And they have paid a huge price for the same. The expenses of appointing a dedicated compliance manager for your company are way less than that. So, give it a though, while there’s still time.
With Core Integra’s Virtual Compliance Manager, you get access to compliance experts to manage all the day-to-day compliance aspects and also provide free legal opinions – in just Rs.15,000 per month!
Know more: http://virtualcm.coreintegra.com
Ph: 97646 00050
Email: sudhir.pande@coreintegra.com
