I strongly believe that every establishment should strive to stay afloat in the area of labour law compliances as no doubt there will be issues and concerns but like it is said, taking a little bit of extra stretch or walking an extra mile, with perseverance the matters can always get resolved.
In any unknown situation, we do face a number of challenges and here again, there will be challenges but the idea is to stay focused and if done, the results can be exceedingly overwhelming and satisfying.
I have been in this field for about 30 years since its inception in 1979 when I started out in a small way undertaking only PF and ESI work with some small selected clients to my credit. However, I have not only immensely grown in this journey but have also myself acquired tremendous knowledge and learning under the weight of hundreds of acts which has given a new perspective to my thought process and understanding the finer nuances of each one of them.
I therefore wish that almost all or most of you will take a leaf out of my book and devote or prioritize some of your time in this direction to constantly check the health compliance status of your establishment and I am sure that in the long run you will definitely be free of the many hassles and issues that surround the compliances. In this way, the risk that your establishment will be exposed to will be much lower than otherwise and I wish you all the very best. Of course, if you need my advisory help or support, I will always be on call and you are free to contact me at any point of time.
– Jai Suresh (Director)
–Ivan Antony John (Director)
HRs ease out Statutory Compliance through payroll management
As India gears up for an interconnected economy, it’s imperative to roll out an inclusive statutory and compliance taxonomy addressing various complexities.
As organizations are redesigning and becoming more agile, decentralizing traditional models for the varied HR functions are being viewed as a top priority to manage the 21st-century workforce. Payroll and statutory compliance involve a lot of time and resources of an enterprise. Organizations not only need to ensure compliance with these laws but also need to register the treatment in accordance with the said practice/employee.
Companies, big and small need to adhere to statutory laws and regulations to keep the businesses out of any legal trouble and avoid penalties. Staying abreast and keeping track of the changing government norms and regulations is a challenge for most organizations. As India gears up for an interconnected economy, it’s imperative to roll out an inclusive statutory and compliance taxonomy addressing various complexities.
Some of the key statutory compliance and labour law compliance requirements of Indian companies include –
· Calculation and deduction of statutory payments
· Uploading of data on respective websites and generation of challans
· Filing transfer and withdrawal forms for Provident Fund
· Filing of returns with govt. agencies as per the schedule
· Registrations & renewals of respective licenses.
Often time-consuming and complicated, processes towards registering and renewing or fulfilment of licenses namely the Contract Labour (Regulation and Abolition) Licenses, Provident Fund, Employees State Insurance, Professional Tax Registration, and Factory Licenses are best managed through an outsourced payroll partner.
Labour law compliance includes several regulatory compliances including minimum wages act, work men’s compensation act, contract labour act, factories act, etc. Failure to comply with any of these laws at Central and State Government levels attracts heavy penalties or businesses may need to face disciplinary action.
Statutory compliance of labour laws becomes a daunting task for organisations with cross border operations with distinctive regulatory compliances in different states and countries. The HR team spends extensive man-hours in overcoming the complexities related to different labour laws for streamlined organisational policies.
Regular processing of payroll includes calculation of several taxes, accounting for employee travel, medical, education as per the permissible allowance limits of each employee. Investment declarations and employee benefits calculation is also highly time-consuming. Missing deadlines to file any important reports may lead to hefty penalties for an organization.
A dedicated legal compliance management team of an outsourced service provider minimizes the risk associated with non-compliance. Easing out the taxing processes, enterprises are able to reduce their operational expenditure and enhance existing operations. With the availability of data on the cloud, compliance services are now accessible 24x7 for ease and quick turnaround.
According to Gartner, “By 2022, 75% of organizations will include employee experience improvement as a performance objective for HR and IT groups.” This means that HR and IT now have a growing priority to work together to ensure new technologies not only address complex business issues but also meet the expectations of people who use them.
–Ivan Antony John
Director
Herttz Global Compliance Services Pvt Ltd