Can you manage Compliance with a list of laws and a checklist?
Yes, but with a very long list.
Labour laws are acquiring greater complexity with time. An informed business owner / HR professional needs to develop a holistic understanding of the compliances required to run a business within the constraints of the law. We discussed the governance and risk compliance landscape in India here.
A small business can fulfill the payroll and statutory compliance requirements with an in-house team, utilising a manual ‘list’ based approach. But it would be a long list, with a lot of paperwork, spreadsheets, and back and forth with stakeholders.
For a business owner, an understanding of compliance laws should be sufficient to put all compliance-related affairs in order. But things are not that simple. The challenge of the compliance laws arises from the nature of its amendments – which are expansive. It is difficult for a small team to track and address labour law compliance single-handedly, especially for a growing company.
The HR team ensures payroll and labour law compliance with the central and state government. These laws change frequently, and even one mistake can invite a penalty from the state.
Ensuring statutory compliance in HR is not as easy as maintaining a checklist. A statutory compliance management software can help your HR team to comply with the laws, reducing the time and effort required to compile and file information.
For larger companies, signing up for compliance automation software is a viable option. A solution like ‘ACT’ — Active Compliance Tracking — will streamline your efforts, reducing the time and cost spent on compliance.
ACT offers end-to-end compliance management for businesses. ACT is configurable according to the industry. It enables an online repository of documents, and real-time tracking of activities and reporting, giving you complete visibility and control over all compliance-related issues.
Let us understand five ways in which ACT can digitize your compliance processes and transform your business:
Record Generation for Compliances:
Generate compliance records and registers, and monitor registrations/renewals for your business easily. Using ACT throughout the compliance process can help HR to ensure all the required registers are completed, organised, and saved properly. Information from these registers can be compiled into audit reports within a few clicks.
You can create and define tasks with ACT in numerous ways and set the parameters, such as due date, publishing interval, notifications, etc. ACT will ensure that the allocated tasks are conveyed to the end-user timely.
E.g., Your HR team can define a set of onboarding tasks to be completed within a stipulated time. If the new employee doesn’t complete it, ACT will send notifications to ensure compliance. ACT can be configured to send alerts when employees work overtime or when employees are eligible for a break or other events.
Chances of error are higher when payroll, employee training, sensitive employee compliance data tracking, and other business requirements are completed manually. ACT’s automation has inbuilt features — Maker and Checker process for activity completion, Workflow configurations, SLA compliance tracker, and so on — that help to reduce possible errors.
An automated compliance management software like ACT reduces the possibility of making errors that could lead to non-compliance.
Digital activity leaves an audit trail that helps to examine the source of the decision. Audit officers and concerned teams can examine the validation process to understand the systems of checks in place to reduce errors in compliance. It is easier to revisit such audit trails digitally if required.
E-Repository of Document Management:
ACT is your digital vault that stores all your documents on the cloud securely. It provides instant access to authorized users and ensures critical information can be compiled into audit reports within a few clicks.
Compliance Reporting and Analytics:
ACT helps businesses to achieve their payroll and labour law compliance. It automates the systems for reporting and complying with laws and regulations. A live scorecard helps to track the compliance status according to each Entity, (According to) the Location of your business, and Labour Laws.
With an average of 10+ years of experience in labour laws and compliance-related activities, Mynd provides consistent support for different industries across India. ACT brings the extensive subject matter and digital expertise of Mynd together.
Read also: Ready, Get set and Buckle up for the New Labour Code