{"id":6955,"date":"2024-12-09T22:58:15","date_gmt":"2024-12-09T17:28:15","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=6955"},"modified":"2024-12-10T13:24:30","modified_gmt":"2024-12-10T07:54:30","slug":"hr-compliance","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/","title":{"rendered":"HR Compliance"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e7bf81747bd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e7bf81747bd\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#What-is-HR-Compliance\" >What is HR Compliance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Types-of-Compliance-within-HR\" >Types of Compliance within HR<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Statutory-Compliance\" >Statutory Compliance\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Regulatory-Compliance\" >Regulatory Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Contractual-Compliance\" >Contractual Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#International-Compliance\" >International Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Ethical-Compliance\" >Ethical Compliance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#HR-Compliance-Best-Practices\" >HR Compliance Best Practices<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Consistent-enforcement\" >Consistent enforcement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Ensure-accountability\" >Ensure accountability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Automate-HR-processes\" >Automate HR processes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Regular-trainings\" >Regular trainings<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Challenges-in-HR-Compliance\" >Challenges in HR Compliance\u00a0\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Workplace-Safety\" >Workplace Safety<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#What-is-an-HR-audit-checklist\" >What is an HR audit checklist?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#What-is-an-HR-Compliance-Audit\" >What is an HR Compliance Audit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/razorpay.com\/payroll\/learn\/hr-compliance\/#Why-is-HR-compliance-important\" >Why is HR compliance important?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-HR-Compliance\"><\/span><span style=\"font-weight: 400;\">What is HR Compliance?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">HR compliance is the process of ensuring that workplace policies align with labour laws and regulations of the land. The HR department is responsible for creating and enforcing these policies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Compliance is one of the most important functions of the HR department because any non-compliance with laws and regulations can lead to business shutdown and increased costs due to high employee turnover rates.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Managing HR compliance can be tricky, since it requires HR teams to keep up with ever-changing labour laws, following several layers of rules and regulations, translating legal requirements into enforceable company policy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bigger companies typically have a compliance department that work with the HR department to ensure HR compliance.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types-of-Compliance-within-HR\"><\/span><span style=\"font-weight: 400;\">Types of Compliance within HR<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are the key types of compliance that HR and compliance teams need to keep in mind when creating company policy.\u00a0\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Statutory-Compliance\"><\/span><span style=\"font-weight: 400;\">Statutory Compliance\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Statutory compliance includes following local, state and national law surrounding employment and labour. Non-compliance with these laws may lead to criminal charges like imprisonment or fines. Some examples of statutory compliances needed to be followed are minimum working age, minimum wage, equal pay, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, all employees in India must undergo POSH training. TDS and PF are also legally enforced deductions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how RazorpayX Payroll handles automated tax compliances.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Regulatory-Compliance\"><\/span><span style=\"font-weight: 400;\">Regulatory Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Regulatory compliance refers to laws put in place by specific regulatory bodies. For example, the\u00a0 Employee\u2019s Provident Fund Organisation (EPFO) has rules regarding the deduction of PF and VPF from salaries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There could be some overlap between statutory law and regulatory law, but the rules to be followed largely remain the same.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Contractual-Compliance\"><\/span><span style=\"font-weight: 400;\">Contractual Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Contractual compliance refers to the legal obligation to adhere to the terms of a contract or agreement between a business and a third party. Contracts with full-time employees, freelancers or even part-time employees need to be honoured and abided.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a business does not follow the terms of a contract, legal action can be taken against them, leading to hefty fines, legal fees and more.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"International-Compliance\"><\/span><span style=\"font-weight: 400;\">International Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">International compliance refers to following international labour law as set and regulated by international bodies like the International Labour Organisation (ILO). International regulations often form the foundation for national or local laws, so following the guidelines set by these international bodies is always good practice.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ethical-Compliance\"><\/span><span style=\"font-weight: 400;\">Ethical Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While other compliances are set in stone by regulatory or government bodies, ethical compliance is more subjective and differs based on interpretation. At the core, ethical compliance refers to the moral principles and values that guide how a company treats its employees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This includes promoting diversity, preventing discrimination, ensuring fair wages, and creating a safe, inclusive work environment\u2014often going beyond what is legally required to meet higher ethical standards.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"HR-Compliance-Best-Practices\"><\/span><span style=\"font-weight: 400;\">HR Compliance Best Practices<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are some of the best practices to ensure HR compliance:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Consistent-enforcement\"><\/span><span style=\"font-weight: 400;\">Consistent enforcement<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">After establishing HR policies, it&#8217;s important to enforce these policies consistently to ensure they are enforced consistently across all departments, functions and for all employees equally.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ensure-accountability\"><\/span><span style=\"font-weight: 400;\">Ensure accountability<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s also important to ensure that complying with HR policies is not the sole duty of the HR department, but a shared duty by all. The responsibility must be adopted and shared by leadership, managers and all employees.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Automate-HR-processes\"><\/span><span style=\"font-weight: 400;\">Automate HR processes<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Automating HR processes can help improve accuracy and efficiency, and can free up HR staff to focus on other important tasks. Software like RazorpayX Payroll help businesses streamline and simplify HR processes like employee onboarding, compliance payments, payroll calculation, disbursal and more.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Regular-trainings\"><\/span><span style=\"font-weight: 400;\">Regular trainings<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">All managers should be trained on how to identify and mitigate compliance risks. This training should be ongoing and should cover all aspects of HR compliance, including recruitment, hiring, onboarding, performance management, compensation and benefits, and termination of employment.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Challenges-in-HR-Compliance\"><\/span><span style=\"font-weight: 400;\">Challenges in HR Compliance\u00a0\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Compliance is not an easy function \u2013 it is constantly changing and must be done with perfect accuracy. Not doing so can result in huge losses for the organisation. Here are some of the challenges that HR teams face while ensuring compliance.\u00a0<\/span><\/p>\n<h4><b>Lack of Automation<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Manual compliance is a tedious, error-prone process. Most businesses in India still file taxes and returns manually, which can lead to missed deadlines or incorrect filings. Today, the only payroll software on the Indian market with automated compliance is RazorpayX Payroll.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Automated software calculates your taxes, automatically files them with the various government portals and allows instant access to all challans in one place. Most importantly, automation keeps up with changes in regulation without any manual intervention.<\/span><\/p>\n<h4><b>Complex Regulatory Environment<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">India has a complex and fragmented regulatory environment for HR compliance. There are over 100 laws and regulations that employers must comply with, and these laws vary from state to state. This can make it difficult for employers to keep up with the latest requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, the <\/span><a href=\"https:\/\/clc.gov.in\/clc\/sites\/default\/files\/MinimumWagesact.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Minimum Wages Act, 1948<\/span><\/a><span style=\"font-weight: 400;\"> sets the minimum wages that employers must pay their employees. However, the minimum wages vary from state to state. For example, the minimum wage for unskilled workers in Delhi is \u20b917,384 per month, while the minimum wage for unskilled workers in Bihar is \u20b911,791 per month.<\/span><\/p>\n<h4><b>Lack of Awareness<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Employee laws are constantly changing, and employers need to be aware of every single update. This can be challenging without a big HR team and expertise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, in 2021, the Maternity Benefit Act, 1961 was amended to increase the paid maternity leave period from 12 weeks to 26 weeks. Employers who were not aware of this amendment may have failed to comply with the new law, which could have resulted in penalties and fines.<\/span><\/p>\n<p><a href=\"https:\/\/razorpay.com\/x\/payroll-enterprise\/?utm_source=google&amp;utm_medium=organic&amp;website=%2Fpayroll%2Flearn%2Fhr-compliance%2F\"><span style=\"font-weight: 400;\">Here\u2019s how RazorpayX Payroll<\/span><\/a><span style=\"font-weight: 400;\"> helps businesses stay up-to-date on employee laws in India.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Workplace-Safety\"><\/span><b>Workplace Safety<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Workplace safety in India is governed by many laws, like the <\/span><a href=\"https:\/\/labour.gov.in\/sites\/default\/files\/factories_act_1948.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Factories Act<\/span><\/a><span style=\"font-weight: 400;\">, the Workmen\u2019s Compensation Act and other compliance requirements like POSH. These Acts define the basic infrastructure and policies that businesses have to put in place for the welfare and wellbeing of their employees.<\/span><\/p>\n<p><b>Read more: <\/b><a href=\"https:\/\/razorpay.com\/payroll\/learn\/statutory-compliance-meaning\/?utm_source=google&amp;utm_medium=organic&amp;website=%2Fpayroll%2Flearn%2Fhr-compliance%2F\"><b>Statutory Payroll Compliance<\/b><\/a><\/p>\n<h4><b>How to Automate HR Compliance?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Today, most businesses choose to automate their HR compliance. With software like RazorpayX Payroll, you can have your entire payroll process automated, integrated and compliant in under an hour.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automated HR compliance such as TDS, ESI, PF, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">45+ integrations with top HR platforms like DarwinBox and Oracle HRM<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Periodic return filing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compliance reports.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High accuracy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Updated at regular intervals.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><b>FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What-is-an-HR-audit-checklist\"><\/span><b>What is an HR audit checklist?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is the list of all the compliances that the company needs to follow. This checklist helps the HR department keep a track of all the compliances that have been followed and what more needs to be done.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What-is-an-HR-Compliance-Audit\"><\/span><b>What is an HR Compliance Audit?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An HR compliance audit is a process of checking the HR compliance policies of the organisation against the statutory requirements. It involves talking to important business people and getting more information about the business laws and regulations, and checking whether all of them are being followed or not.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why-is-HR-compliance-important\"><\/span><b>Why is HR compliance important?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">HR managers should stay updated about the changes in labour and business laws. HR compliance is important because it helps the organisation avoid the risk of penalties, fines, and legal troubles.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HR compliance is the process of bringing an organisation\u2019s HR policies in sync with the labour laws prevalent at the city, state, country, and global level and in accordance with industry-specific laws.<\/p>\n","protected":false},"author":151156542,"featured_media":14144,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3404],"tags":[3615],"class_list":{"0":"post-6955","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll","8":"tag-hr-compliance"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156542"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=6955"}],"version-history":[{"count":14,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6955\/revisions"}],"predecessor-version":[{"id":14808,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6955\/revisions\/14808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/14144"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=6955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=6955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=6955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}