HR compliance management involves many rules and regulations. Failure to follow these rules can result in fines, penalties, or legal proceedings.
Keeping up with HR laws is challenging. New legislation constantly changes the landscape, so you must review your processes and policies regularly. Statutory compliance refers to rules a government body sets, such as the minimum working age or discrimination laws.
What is compliance?
HR compliance refers to the company’s processes and policies to ensure employees abide by internal rules of conduct and external employment laws. It can include everything from ensuring the company has an anti-discrimination policy, keeping up with wage laws, and providing workers’ compensation insurance.
It also ensures employees are paid appropriately and eligible for benefits such as vacation time, health insurance, and retirement programs. Depending on the size of your organization, you may need to follow local or state employment laws as well.
Compliance is an ongoing process, as new laws and regulations always emerge. A routine HR compliance audit can help you stay up to date and avoid fines and bad publicity. HR compliance management software can also make the job of staying compliant easier. The best tools in this category offer regular updates and provide an easy-to-use dashboard for tracking compliance. Some even include features that allow managers to monitor employee progress and performance.
Creating a compliance playbook
To achieve compliance, organizations must create and maintain a playbook outlining policies and procedures to ensure adherence to laws and regulations. This task requires an in-depth understanding of business regulations and HR compliance issues. All-in-one HR software like ComplianceHR can help simplify this process by providing a single place to manage employee documents, compliance measures, and other administrative tasks.
The playbook must be updated regularly as new laws and regulations are introduced. For example, a coronavirus mandate might require companies to establish vaccination policies and implement a weekly protocol for reviewing COVID-19 tests and verifying vaccination status. In addition, a playbook should also include procedures for managing remote work issues and consider local laws that might impact employee rights.
In addition, it’s essential to understand the implications of noncompliance, which could lead to fines and lawsuits. An overarching HR compliance management strategy that includes HR and leadership can help mitigate these risks.
Creating a compliance culture
HR leaders to balance strategic decisions with compliance considerations. They should take the time to research laws and regulations as they affect their employees’ daily lives, ensuring that their company is operating within compliance guidelines.
In addition to labor laws, HR professionals also must be aware of contractual obligations and union-related regulations. These may impact how a company pays its employees, how much vacation time it must offer them, and how it classifies contractors.
A well-established compliance culture can help a business achieve compliance, avoiding potential fines and scandals that damage its reputation. However, it requires a commitment from the entire organization, especially senior management.
A vital part of a compliance culture is ensuring that policies and procedures are communicated to all employees. This can be done through regular training sessions or informal conversations. This will make it easier for employees to report any violations. HR technology like ComplianceHR can make this process much easier by digitally storing and organizing all employee-related documents in one place.
Creating a compliance team
A culture of compliance can be challenging to build, but it can also be crucial. An HR compliance management team can help you achieve your goals and ensure that every organization member knows how to follow company policies. To get your employees to take these policies seriously, it’s essential to ensure they are easily accessible. To do this, consider using software to store all documents in one location. This makes it easier for employees to access them and will increase their likelihood of reading them.
Your HR, IT, and safety teams should constantly review and update policies to ensure they’re relevant. This will help you avoid regulatory fines and other serious consequences. Another best practice is tracking violations and their costs to identify areas for improvement. Lastly, it’s also crucial to have a clear code of conduct for your business that clearly states how to raise concerns.