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Labour Compliance Management Challenges That Businesses Face

Shubhangi Jain

| Updated: Aug 09, 2022 | Category: Compliances

Labour Compliance Management Challenges

Operating a business is a huge responsibility. India’s regulatory environment is extremely challenging to explore with multiple state and central laws; it is difficult to cover all bases to be fully compliant. The non-compliance with the labour laws can lead to the cancellation of certification and fines, which can hamper the reputation of the firm; therefore, there is a need for proper Labour Compliance Management, which can be quite challenging for the business.

This article discusses about the various Labour Compliance Management Challenges that businesses face.

What is Labour Compliance Management?

Labour compliance management refers to adopting a systematic approach for complying with the rules and regulations prescribed in the various labour laws by the business.

Labour Compliance Management is essential to safeguard the interests of the employees and avoid the imposition of any penalties or initiation of punitive actions against the organisation.  

What are the Labour Compliance Management Challenges that Businesses Face?

There are various Labour Compliance Management Challenges that a business face while in operation, such as –

Work Timings

The work timings of an organisation can vary depending upon the requirements of the business. It is often a challenge for the organisation to keep track of the work timings of its employees, which can adversely affect the operation of the business; therefore, it is essential for every business to have a systematic approach of monitoring the work timings of its employees to avoid the Labour Law Compliance Management Challenges.

Harassment at Workplace

Harassment at Workplace has always been a concern in any organisation, irrespective of its size. There is separate legislation to address this issue, i.e. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013[1], which was enacted to protect women from sexual harassment at the workplace in lieu of which it is necessary for every organisation must have a Protection of Sexual Offenses (POSH) Committee however the proper regulation of the committee is still a challenge for the organisation.

Managing Complex Legislations

There are various rules and regulations that a business needs to comply with in order to avoid any penalties or punitive actions; keeping track of all the complex legislations and the recent trends can be a challenge for the business, which is why it is important to have an expert who can handle such compliances for the organisation.

Providing a Sense of Inclusion to the Employees

There can be diversity on the basis of race, religion, age, ethnicity, and gender in a workplace. It becomes extremely difficult for the organisation to provide a sense of inclusion to its employees, which can hamper the productivity and efficiency of the employee and, in turn, affect the growth of the business.  

Recruiting the Right Personnel

Human resources are considered one of the greatest assets for any business. However, talent acquisition is a significant challenge faced by the business today s time due to the increase in competition and improper recruitment process. Every business needs to have a well-defined recruitment process to tackle this issue. 

Improper Workforce Planning

Workforce planning refers to analysing the current employees and formulating employee management procedures to provide a better working experience to its employees. One of the major Labour Compliance Management Challenges is improper workforce planning which often hampers the employees’ productivity and hinders the business’s operations.

Cyber Breaches and Data Security

The data leaks /breaches can involve financial information, personally identifiable information or personal health information, intellectual property files, and documents of employees as well as the organisation, which causes disruptions in the workspace. The business should have proper measures for data security to overcome this challenge.

Employee Leave Policies

The number of leaves of the employees of the organisations may vary from state to state, which implies that the leaves need to be formulated as per the Shops and Establishment Act of that particular state and formulating the leave policies as per the different state laws, which adds to the challenges an organisation has to face in Labour Compliance Management.

Mental Health and Wellness of the Employees

The mental health and wellness of the employees play a vital role in the growth of the business, due to which there is the concept of employee wellness programs and employee assistance programs formulated by the business. However, properly implementing the same is still considered as a challenge in labour compliance management.

Inability to Provide Competitive Employee Benefits  

Due to the increase in competition in recent years, it has become extremely difficult for organisations to provide employee benefits that can encourage employees to be associated with their organisation, which acts as a hindrance in hiring top talent.

Payroll Compliance

The organisation faces certain challenges with regard to payroll compliance, such as GDPR, gender pay gaps, and calculation of salaries, to name a few. It is essential for the organisation to maintain the payroll records to overcome these Labour Compliance Management Challenges.

Conclusion

The above discussion concludes that there are various Labour Compliance Management Challenges that a business face therefore, the business should have proper procedures to overcome such challenges.

Read our Article: All you need to know about Payroll Compliances in HR in India

Shubhangi Jain

Shubhangi has completed her B. A.LLB (H) with specialization in Business Laws from Amity University. She is particularly interested in legal research and writing and wishes to utilize her knowledge to create informative legal content. She has prior experience in corporate and criminal litigation and has great drafting skills. She has also published various research papers in reputed journals.

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