Today businesses of all sizes right from start-ups, small-size firms to even MNC’s must focus on labour law compliance. The labour laws in any given country are updated by the concerned authorities and keep changing from time to time, and all business owners should be ready to adapt and abide by it. The responsibility of Labour law compliance management rests with the HR teams only, and this increases the pressure on the entire HR team.
They need to keep themselves updated with all the changes, amendments and notifications related to employment laws and labour laws which can be a cumbersome and time-consuming process. One needs an expert who can handle such complexities. A labour law advisor can help in overcoming all the challenges related to labour law compliance.
Here are some of the challenges faced by the HR teams:
Usually, work timings are set to a limit on a weekly basis. The entire working hours for one week should not exceed 48 hours. These 48 hours should also include the overtime and night shifts. There will be special provisions for night shift workers. As employees are even working from home, it is a challenge for the HR team to keep an accurate track of the working hours of each employee.
If your business operations are spread out in multiple states, then the regulations of local governments, state and central are different. The company needs experts in all the applicable compliances in order to manage them all. It may not be possible for the company to handle so many compliances at times as they lack expertise to handle so many compliances.
Wages are usually calculated based on the working hours and working days in a particular month. A register with all the details should be maintained as evidence, by the employers. But when it comes to overtime, the pay slabs are going to be different. These records of overtime calculations and payments should be maintained in a systematic way as required by the labour department.
As part of labour law compliance, it is important for the organization to maintain a digital record of payrolls. Any kind of changes in the minimum wage act in the state level should be tracked from time to time, to make sure that you are paying the right salary to your employees.
Apart from these, there are many other challenges that the HR team faces like the gender pay gap, GDPR and many other things. So, it may not be possible for the internal HR team to handle all these challenges by themselves. An expert labour law advisoris required to get everything in place. They take care of ESI, LWF, EPF and PT as well. Apart from these, they also take care of Regulatory compliance and vendor compliance audits as well. To make sure you have a clear and up-to-date employee record, and maintain labour law compliance, you will need the best team of experts in this field.