HR and Payroll Compliances

All the compliances related to employees and their remuneration are called HR and payroll compliances. They arise under the statutes that make up labour law, which is why they are also called statutory compliances. There are mandatory labour law compliances at both the central and the state level.

Every organisation, whether a partnership, an LLP or a company, spends considerable business bandwidth ensuring that its payroll is compliant through proper audits. Labour law compliance protects an organisation from unfair legal sanctions arising from employee disputes, unreasonable wage demands and trade unions.

Other than preventing legal trouble, robust statutory HR compliance brings a number of benefits:

• Enhanced business prospects — more goodwill, an edge in negotiations for crucial business contracts, and more investment for companies with an advanced compliance regime.
• Low attrition — it shows a just, employee-friendly, professional and safe working environment, which translates into enhanced productivity and lower attrition.
• Prevention of legal penalties — it saves the business from the consequences of non-compliance: litigation, halting of work, revocation or suspension of licences, disqualification of top-level executives, penalties, and sometimes imprisonment of officials and total shutdown.
• Efficient business operations — with HR compliance handled by a reliable service provider, the company can focus on its core business operations and expansion instead of worrying about regulations and penalties.
• Brand loyalty — strict adherence to labour law shows investors and stakeholders that the company operates in a just and transparent manner, increasing the faith of employees, vendors and customers and building brand equity.

Common challenges for organisations in ensuring labour law compliance include:

• lack of awareness amongst professionals of labour law compliance requirements;
• involvement of various departments in functional activities, leading to ineffective compliance;
• dynamic statutory requirements.

We are a team of legal and finance professionals assisting organisations of different sizes and from various industries with their HR and payroll compliances. We provide end-to-end solutions: hiring new employees and bringing them on board, legal paperwork, entry-exit formalities, an automated solution for payroll compliance, and more.