Compliance Framework

Meaning & Definition

A compliance framework is a methodical approach that assists companies in the identification, management, and tracking of compliance with legal requirements, regulations, internal policies, and ethical standards. In HR, the compliance framework establishes a set of procedures, guidelines and controls that enable companies to ensure consistent compliance with their legislation, regulations and policies regarding hiring and managing employees, paying their employees and providing a safe and healthy working environment for employees.

Important features of the Compliance Framework

• Creates a well-defined framework for compliance with legal and policy requirements.
• Establishes a basis for reducing the risk of noncompliance, penalties, and litigation.
• Ensures consistent methods across HR, payroll, and operational procedures.
• Facilitates audits, inspections, and internal reviews.
• Encourages an atmosphere of responsible behaviour and ethical governance.

Regulatory & Policy Alignment

A compliance program should include the following important areas:

• Employment law (including wage and benefit regulations), working conditions.
• Payroll processing, required deductions by law, and reporting requirements.
• Workplace safety and conduct around the workplace.
• Policies on protecting information and data.

It establishes the roles and responsibilities of employees and management, provides documentation and policies, and creates a process for regular review.

An up-to-date compliance program is important in order to support changing laws and business conditions.

For more info, visit: Statutory Compliance