Charles Spinelli Provides a Good Understanding of HR Legal Compliance
Human Resource or HR compliance helps make sure that the company’s actions and policies adhere to the labor laws in the relevant country, state or municipality. As per Charles Spinelli, doing so involves everything from creating and documenting policies to enforcing them to be assured of ongoing alignment. Ensuring HR compliance is critical for keeping a business legitimate and its employees safe.
Charles Spinelli talks about the types and best practices for HR compliance
HR compliance involves the process of developing procedures and policies that help make sure that a company follows the relevant, and the latest labor and employment laws and regulations. Not only does the human resource department of a company work to align workplace policies with the federal and local laws, but also tends to enforce the procedures to see to it that all employees follow them.
HR compliance is important for all businesses, as each and every employer needs to prioritize meeting legal responsibilities. Non compliance may lead to penalties, fines and even lawsuits, which can be quite detrimental to a business.
There are multiple types of compliance associated with HR, the major ones being:
- Statutory compliance: This compliance involves implementation and adherence to government legislation around the workplace and employment. For instance, a company would be legally required to follow certain laws associated with anti-discrimination, working age requirements and minimum wage.
- Regulatory compliance: Regulatory compliance tends to overlap with statutory compliance periodically. However, the distinction in this situation is that the company must follow the rules of a particular regulatory body. Such regulatory agencies may fall under three major classifications, which are independent regulatory commissions, executive agencies and government corporations.
- Contractual compliance: Contractual compliance involves compliance with certain terms and regulations a company is bound by. This can be a contract between a company and its employees or even some partner organization.
- Union law compliance: Many companies have to deal with union workers, and hence have to be aware of the rules set by these unions and properly adhere to them.
As Charles Spinelli mentions, following these HR compliance best practices can help ensure adherence to internal policies and external labor laws.
- Practice policy documentation: All the practices and policies important to a company should be documented and accessible to all employees. Its new hires must additionally receive a proper orientation to make sure that they have a good understanding of their rights and responsibilities within the company.
- Stay updated with new regulations: Labor regulations at the local, state and federal levels may change quite a bit with time. Hence, the HR team of a business must make efforts to stay on top of new regulations.
- Be transparent with employees: Employees must be aware of their role in complying with tax and labor laws. In case a certain policy at the company changes, all affected employees have to be notified at once.