Statutory Compliance Checklist (2023 Updated)

Every organization, despite its size or industry, needs to keep a check on compliance and statutory requirements to avoid penalties and fines. These regulations back the smooth functioning of an organization and benefit both the employer and the employee.

But what is statutory compliance and what are some compliance requirements that the HR management must fulfill?

In this blog, we will discuss the statutory compliance requirements that a company must follow in 2023.

What is Statutory Compliance?

Statutory compliance is the legal framework laid down by the government that directs the duties and responsibilities of a company. These regulations ensure the smooth functioning of the company and the welfare of employers and employees.

Adhering to the statutory compliance checklist is important regardless of its size to prevent penalties or other legal liabilities.

What are the benefits of statutory compliance?

Adhering to the compliance requirements of a company not only saves you from legal penalties but also helps in sustainable business growth. Let us discuss some of the major benefits of statutory compliance.

Safeguarding Employee Interest

Setting company policies and regulations as per the statutory compliance laid down by the government helps in ensuring a secure work environment. Moreover, adhering to labor laws and employment regulations is crucial to assure fair and professional treatment of employees.

Minimize Legal Penalties

Following statutory compliance primarily helps an organization in minimizing legal penalties and lawsuits. By ensuring that all the points in the statutory compliance checklist are being followed, the company can ensure the smooth and continuous working of the organization.

Establishing Policies

Statutory regulations act as a framework for establishing the policies and regulations of the company as per the industrial standards. By laying down the foundation of company policies based on HR Compliance, the organization can guarantee long-term business efficiency.

Improving public relations

A compliant company that assures that all the regulations pertaining to customers, employees, stakeholders, and investors are being followed, can maintain optimal public and customer relationships in the long run.

Managing Business Risk

Financial, operational, and strategic risks are inevitable in any organization. Although statutory compliance doesn’t help you get rid of these risks altogether, it helps the business in preventing such risks and avoiding legislative challenges.

Statutory Compliance Checklist 2023

Here is the complete list of statutory compliance requirements that an organization must follow,

1. Shops And Commercial Establishments Act: This act protects and safeguards employees working in shops and commercial establishments by providing guidelines for payment of wages, hours of work, leave, holidays, terms of service, and other work conditions.
2. The Employees Provident Funds and Miscellaneous Provision Act, 1952: The EPF Act was established to ensure the social security and welfare of employees by managing employer and employee contributions in the Employee Provident Fund Account.
3. The Employees State Insurance Corporation Act, 1948: The act was incorporated to provide social security and relief to employees in case of medical emergencies.
4. The Professional Tax Act, 1975: This act specifies the amount and percentage at which tax is payable by a person earning an income from salary or anyone practicing a profession such as a chartered accountant, company secretary, lawyer, doctor, etc.
5. The Labour Welfare Fund Act, 1965: The labour welfare fund act defines facilities and regulations to improve the working conditions and standard of living for labours.
6. The Contract Labour (Regulation & Abolition) Act, 1970: This act provides prohibition for an establishment to employ contract labour in any operation.
7. The Child Labour (Prohibition & Regulation Act), 1986: This act provides prohibition for an establishment to employ child labour in any operation.
8. The Minimum Wages Act, 1948: This act defines the minimum rates of wages in certain employments.
9. The Payment of Wages Act, 1936: This act regulates the timely and accurate payment of wages to employees and provides provisions for the deduction of certain amounts from wages.
10. The Payment of Bonus Act, 1965: This act ensures the payment of a bonus to employees based on their performance and the profits of the organization. It sets guidelines for calculating and distributing bonuses.
11. The Maternity Benefit Act, 1961: This act aims to provide maternity benefits to women employees, including maternity leave, medical benefits, and other related provisions.
12. The Payment of Gratuity Act, 1972: This act mandates the payment of gratuity to employees who have served a certain period with an organization. Gratuity is a lump sum amount given as a retirement benefit.
13. The Equal Remuneration Act, 1976: This act promotes gender equality in the workplace by ensuring that men and women receive equal pay for equal work.
14. The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959: This act requires certain employers to notify job vacancies to employment exchanges, aiming to facilitate job placements for job seekers.
15. Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013: This act addresses the issue of sexual harassment at workplaces and mandates employers to establish mechanisms for preventing and addressing such incidents.
16. The Employees' Compensation Act, 1923: Formerly known as the Workmen's Compensation Act, this act provides compensation to employees for injuries or accidents that occur during the course of employment.
17. The Industrial Employment (Standing Orders) Act, 1946: This act requires employers to define certain terms and conditions of employment through standing orders, providing clarity on various aspects of the employment relationship.
18. The Industrial Disputes Act, 1947: This act provides a framework for the resolution of industrial disputes, including procedures for negotiations, conciliation, and arbitration.
19. The Apprentice Act, 1961: This act regulates apprenticeships, providing a legal framework for the training and welfare of apprentices in various industries.
20. The Interstate Migrant Workmen (Regulation of Employment and Conditions of Services) Act, 1979: This act safeguards the interests of interstate migrant workers by providing certain protections and regulating their employment conditions.
21. The Factories Act, 1948: This act sets out provisions related to the health, safety, and welfare of workers in factories. It covers various aspects of factory operation and worker protection.
22. The Trade Unions Act, 1926: This act governs the formation, registration, and functioning of trade unions, which are organizations representing workers' interests and rights.

For more information on HR and Statutory Compliance, Visit: HR Pearls Or contact us at +91 7303393220