Compliance

Meaning & Definition

Compliance is the process by which any organisation complies with all applicable laws, rules, regulations, and internal policies concerning employment, payroll, workplace safety, and data protection. In HR, compliance enables people practices to meet the standards set by the law and ethics, while also ensuring that employee rights and organizational operations are well maintained.

Importance of Compliance

• Protects the organization from fines and legal actions.
• Ensures that each employee is treated fairly and that their constitutional rights are respected.
• Thoroughly creates trust with employees, regulators, and contributors.
• Facilitates smooth audits and risk management.
• Enhances the reputation of the organization concerning credibility and governance standards.

Compliance Requirements

Compliance is then determined by the external laws and by various guidelines within the company that address: 

• The employment contract, which includes wages, work hours, and benefits.
• Statutory compliance shall include any kind of filing, payroll deductions, and record keeping.
• Workplace safety, ethics, and data safety and privacy.

Audits, timely documentation, and tracking in the HRMS support the monitoring of compliance.