Statutory is the term for different laws, and compliance is when you follow or comply with the distinctive laws. So together statutory compliance is when you abide the laws of a particular issue. Every HR organization has a set of rules and regulation which it has to abide by. For betterment of the workers, certain laws are prepared, which have to be followed by all organizations.
They also have a statutory compliance in hr, which they abide by, to make the organization progress and have a sound reputation in society. An organization that does not comply with the hr statutory compliance can never progress, as the workers will not be satisfied and hence it can affect the firm’s reputation. A company that goes against hr statutory compliances, they go out from the goodwill of people.
Benefits of statutory compliance in hr organization
The purpose of statutory compliance in hr safeguards and improve the working conditions of the workers, by providing them with different sorts of benefits which helps in betterment of life. Small or huge, every type of organizations should abide by the rules and regulations, to ensure their business is safe in the legal matters. Hr statutory compliance is different of each organization and varies from country to country.
Benefits of statutory compliances in India
- Minimum wage system, this ensures that both skilled and unskilled workers are given a fixed salary for their work. The minimum wage should be as such, that does not only caters the basic necessities, but also caters education, medical facilities and little comfort to all.
- TDS deductions, the employers need to cut a small proportion of money from the employee income, for those who have a good pay scale. Components like travel leave, education and medical allowance, different sorts of investments affect the TDS deductions.
- Provident fund is an amount of money is saved for the workers after they retire, so that the basic necessities are fulfilled even when they are not able to work. In case the person dies early, it is passed on to his families who can use it to sustain themselves.
- Gratitude is a lump sum of money that is given as a gift to the workers after they the job after 5years or minimum 240 days. It is a token of respect that is given, for giving his precious time and working for the welfare of the institution.
- Maternity leave increases the status of women, where they can take leave for a particular amount of period, but they are provided by an amount of money to support their maternity period. It improves the conditions of the conceiving women.
- Bonus act represents that every worker should be given extra bonus and perks based on their performance and the productivity. This ensures that they will give their best to the organization.
