SlideShare a Scribd company logo
www.verde.co.in
Take Steps........
To increase HR
Compliance and
Stay Competitive
Inspiring Excellence
about the presentation
The human resources (HR) function is at the centre of most employers’ efforts to
identify, hire and retain the people the organization needs to execute its strategy
and achieve its goals. But the HR function is a key player within the organization’s
compliance structure as well.
There are numerous laws and regulations governing the employment relationship
that HR professionals must understand and navigate in order to help ensure their
organizations avoid costly fines and other penalties, including the potential harm
to the organization’s reputation.
This presentation will help the organizations to focus on the HR legal requirements
and manage the HR compliance in an effective manner.
www.verde.co.in
Inspiring Excellencewww.verde.co.in
Few facts....
Employment law suits have increased 400% in last 20 years
More than 90% of the companies – regardless of size seek outside advice on
compliance
52% of mid-size companies report at least one recent incident of HR-related complaints,
charges or lawsuits
Inspiring Excellence
Compliance is a continuing challenge….
HR
compliance
issues of
Most
concern
Pay roll & Taxes
Recruitment & Hiring
Pay requirements
Workers compensation & insurance
Termination
Employee benefits
Risk and safety issues
Establishment related issues
Social Security related issues
Inspiring Excellence
Purpose of Labour Legislations
• To protect the workers from profit seeking exploiters.
• To promote cordial industrial relations between employers and
employees.
To preserve the health safety and welfare of workers.
• To product the interests of women and children working in the factories.
• It establishes a legal system that facilitates productive individual and
collective employment relationships, and therefore a productive
economy.
Inspiring Excellence
Labour Legislations contain the principles of social justice, social equity, social
security and national economy.
• Social justice implies two things. First, equitable distribution of profits and other
benefits of industry between owner and workers. Second, providing protection
to workers against harmful effect to their health, safety and morality.
• Social equality provides the flexibility in labour legislations to adjust to the need
of the industrial society.
• Social security envisages collective action against social risks which constitute
the crux of the labour legislation.
• National Economy provides the standards to be set for the labour legislations.
Principles of Labour Legislations
Inspiring Excellence
LAWS RELATED TO EMPLOYMENT & CONDITIONS OF SERVICE
1
2
The Factories Act, 1948
The Shops & Establishment Act, 1953
The Weekly Holiday Act, 1942
The Contract Labour (Regulation & Abolition) Act, 1970
3
4
1
2
The Trade Unions Act, 1926
The Industrial Employment (Standing Orders) Act, 1946
The Industrial Dispute Act, 19473
LAWS RELATED TO INDUSTRIAL RELATIONS
1
2
The Payment of Wages Act, 1936
Minimum Wages Act, 1948
LAWS RELATED TO WAGE PAYMENT
Payment of Bonus Act, 19653
Equal Remunerations Act, 19764
Laws to
comply to
meet the
challenges
Inspiring Excellence
LAWS RELATED TO WELFARE & SOCIAL SECURITIES
1
2
Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
Payment of Gratuity Act, 1972
Employees’ State Insurance Act, 19483
Maternity Benefit Act, 1961
Employees Compensation Act, 2010
4
5
LAWS RELATED CHILDREN, WOMEN & OTHER DEPRIVED AND
DISADVANTAGED SECTIONS OF THE SOCIETY
1
2
3
Bonded Labour System (Abolition) Act, 1976
The Child Labour (Prohibition & Regulation) Act, 1986
The Sexual Harassment at the Workplace (Prevention, Prohibition and Redressal) Act, 2013
Laws to
comply to
meet the
challenges
Inspiring Excellence
Application &
Selection
Induction
Working
Period
Exit
 Competence assessment
 Non- Discriminatory
Screening and Selection
 Conditions for employment
 Non- Discriminatory and
legal Conditions
 Induction training
Compliance to social laws for
conducive environment for work
 Freely chosen employment
 Freedom of association and right to
collective bargaining
 Working hours
 Wages and benefits
 Discrimination
 Regular employment
 Disciplinary procedures
Health, Safety and Welfare
Capacity Building through Training
Work Cycle Legal requirements
Worker
Contract
Worker
Laws related to
Employment & Training
• Laws related to Working
Hours, Conditions of
Services and
Employments
• Laws related to Wages
• Laws related
to Equality and Empowe
rment of Women
• Laws related
to Deprived and
Disadvantaged Sections
of the Society
• Laws related to
Social Security
• Laws related to
Labour Welfare
Inspiring Excellence
It’s a matter of
compliance to
international codes &
practices as well
HR legal compliance will help you to comply with…..
1. Social Accountability 8000 standard
2. Ethical Trade Initiative Base Code
3. International Finance Corporation Guidelines
4. ILO recommendations
5. Other industry specific social codes & standards
Inspiring Excellencewww.verde.co.in
This is a
knowledge
initiative
About the author:
Madhabi is a consultant of Verde Ventures, which provides consulting and advisory services in the field of
business management. She worked in manufacturing and service industries in different people functions
as an auditor, consultant and trainer. She has expertise in process development, strategic management in
the areas of people excellence, sustainability and business excellence.
Madhabi is a trainer, consultant and assessor and worked with more than 100 organizations across India.
Madhabi is masters in human resource management and presently pursuing doctorate in management.
She is a certified Neuro Linguistic programme practioner and trained social impact assessor. She has
conducted 100+ assessments in different industries in the areas of HR, legal, social, CSR and sustainability.
Her knowledge of industrial relations and labour laws helps her to contribute in the HR audits effectively.
Currently Madhabi iis heading the training service at Verde.
Madhabi can be reached at madhabi.guha@verde.co.in
Inspiring Excellence
What Verde does?
Verde is an international advisory firm involved in the field of Responsible
Business, Business Excellence and Risk Management.
1
Assessment
Identifying the
gaps in a
system against
standard(s) and
requirement. to
meet
compliance and
facilitate
improvement.
2
Consulting
Supporting &
handholding
organisations
to solve their
problems and
to meet the
gaps identified
during the
assessment or
any other audit.
3
Training
Empowering
people to
perform their
duties
effectively and
efficiently.
4
Assurance
&
Certification
Ensuring that a
process,
product, or
service meets
relevant techni
cal standards
and fulfils
relevant
requirements.
www.verde.co.in
Verde services in
People Excellence
• HR Audit
• HRD Climate Survey
• Workplace Stress
Management
• Human Resource Process
Management
• Performance Management
• Strategic Competency
Management
Safety,
Health &
Environment
People
ExcellenceFood Safety
Social
Compliance
Quality &
Business
Excellence
Information
Security

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Take steps to increase HR Compliance and stay Competitive

  • 1. www.verde.co.in Take Steps........ To increase HR Compliance and Stay Competitive
  • 2. Inspiring Excellence about the presentation The human resources (HR) function is at the centre of most employers’ efforts to identify, hire and retain the people the organization needs to execute its strategy and achieve its goals. But the HR function is a key player within the organization’s compliance structure as well. There are numerous laws and regulations governing the employment relationship that HR professionals must understand and navigate in order to help ensure their organizations avoid costly fines and other penalties, including the potential harm to the organization’s reputation. This presentation will help the organizations to focus on the HR legal requirements and manage the HR compliance in an effective manner. www.verde.co.in
  • 3. Inspiring Excellencewww.verde.co.in Few facts.... Employment law suits have increased 400% in last 20 years More than 90% of the companies – regardless of size seek outside advice on compliance 52% of mid-size companies report at least one recent incident of HR-related complaints, charges or lawsuits
  • 4. Inspiring Excellence Compliance is a continuing challenge…. HR compliance issues of Most concern Pay roll & Taxes Recruitment & Hiring Pay requirements Workers compensation & insurance Termination Employee benefits Risk and safety issues Establishment related issues Social Security related issues
  • 5. Inspiring Excellence Purpose of Labour Legislations • To protect the workers from profit seeking exploiters. • To promote cordial industrial relations between employers and employees. To preserve the health safety and welfare of workers. • To product the interests of women and children working in the factories. • It establishes a legal system that facilitates productive individual and collective employment relationships, and therefore a productive economy.
  • 6. Inspiring Excellence Labour Legislations contain the principles of social justice, social equity, social security and national economy. • Social justice implies two things. First, equitable distribution of profits and other benefits of industry between owner and workers. Second, providing protection to workers against harmful effect to their health, safety and morality. • Social equality provides the flexibility in labour legislations to adjust to the need of the industrial society. • Social security envisages collective action against social risks which constitute the crux of the labour legislation. • National Economy provides the standards to be set for the labour legislations. Principles of Labour Legislations
  • 7. Inspiring Excellence LAWS RELATED TO EMPLOYMENT & CONDITIONS OF SERVICE 1 2 The Factories Act, 1948 The Shops & Establishment Act, 1953 The Weekly Holiday Act, 1942 The Contract Labour (Regulation & Abolition) Act, 1970 3 4 1 2 The Trade Unions Act, 1926 The Industrial Employment (Standing Orders) Act, 1946 The Industrial Dispute Act, 19473 LAWS RELATED TO INDUSTRIAL RELATIONS 1 2 The Payment of Wages Act, 1936 Minimum Wages Act, 1948 LAWS RELATED TO WAGE PAYMENT Payment of Bonus Act, 19653 Equal Remunerations Act, 19764 Laws to comply to meet the challenges
  • 8. Inspiring Excellence LAWS RELATED TO WELFARE & SOCIAL SECURITIES 1 2 Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 Payment of Gratuity Act, 1972 Employees’ State Insurance Act, 19483 Maternity Benefit Act, 1961 Employees Compensation Act, 2010 4 5 LAWS RELATED CHILDREN, WOMEN & OTHER DEPRIVED AND DISADVANTAGED SECTIONS OF THE SOCIETY 1 2 3 Bonded Labour System (Abolition) Act, 1976 The Child Labour (Prohibition & Regulation) Act, 1986 The Sexual Harassment at the Workplace (Prevention, Prohibition and Redressal) Act, 2013 Laws to comply to meet the challenges
  • 9. Inspiring Excellence Application & Selection Induction Working Period Exit  Competence assessment  Non- Discriminatory Screening and Selection  Conditions for employment  Non- Discriminatory and legal Conditions  Induction training Compliance to social laws for conducive environment for work  Freely chosen employment  Freedom of association and right to collective bargaining  Working hours  Wages and benefits  Discrimination  Regular employment  Disciplinary procedures Health, Safety and Welfare Capacity Building through Training Work Cycle Legal requirements Worker Contract Worker Laws related to Employment & Training • Laws related to Working Hours, Conditions of Services and Employments • Laws related to Wages • Laws related to Equality and Empowe rment of Women • Laws related to Deprived and Disadvantaged Sections of the Society • Laws related to Social Security • Laws related to Labour Welfare
  • 10. Inspiring Excellence It’s a matter of compliance to international codes & practices as well HR legal compliance will help you to comply with….. 1. Social Accountability 8000 standard 2. Ethical Trade Initiative Base Code 3. International Finance Corporation Guidelines 4. ILO recommendations 5. Other industry specific social codes & standards
  • 11. Inspiring Excellencewww.verde.co.in This is a knowledge initiative About the author: Madhabi is a consultant of Verde Ventures, which provides consulting and advisory services in the field of business management. She worked in manufacturing and service industries in different people functions as an auditor, consultant and trainer. She has expertise in process development, strategic management in the areas of people excellence, sustainability and business excellence. Madhabi is a trainer, consultant and assessor and worked with more than 100 organizations across India. Madhabi is masters in human resource management and presently pursuing doctorate in management. She is a certified Neuro Linguistic programme practioner and trained social impact assessor. She has conducted 100+ assessments in different industries in the areas of HR, legal, social, CSR and sustainability. Her knowledge of industrial relations and labour laws helps her to contribute in the HR audits effectively. Currently Madhabi iis heading the training service at Verde. Madhabi can be reached at madhabi.guha@verde.co.in
  • 12. Inspiring Excellence What Verde does? Verde is an international advisory firm involved in the field of Responsible Business, Business Excellence and Risk Management. 1 Assessment Identifying the gaps in a system against standard(s) and requirement. to meet compliance and facilitate improvement. 2 Consulting Supporting & handholding organisations to solve their problems and to meet the gaps identified during the assessment or any other audit. 3 Training Empowering people to perform their duties effectively and efficiently. 4 Assurance & Certification Ensuring that a process, product, or service meets relevant techni cal standards and fulfils relevant requirements. www.verde.co.in Verde services in People Excellence • HR Audit • HRD Climate Survey • Workplace Stress Management • Human Resource Process Management • Performance Management • Strategic Competency Management Safety, Health & Environment People ExcellenceFood Safety Social Compliance Quality & Business Excellence Information Security