HR Statutory Compliance Outsourcing to HR Consulting Firms

1
HR Statutory Compliance Outsourcing to HR
Consulting Firms
Accuprosys
2

• All organizations and corporate firms that employ
  a workforce mandatorily adhere to specific
  statutes, laws and regulations regarding their
  employees. This integral part of human resource
  management is called HR statutory compliance.
  Refusing or forgetting to follow these may harm
  the organization or result in legal action
  against managers. All stakeholders and HR
  managers are required to comply with statutory
  rules, which they may sometimes overlook or fail
  to comply with. Therefore, companies often
  outsource their HR statutory compliance tasks to
  HR consulting service providers. HR consulting
  firms manage the statutory compliance of their
  client organizations by auditing compliance
  reports, dealing with renewals and liaison with
  statutory entities, managing returns, etc.

• HR Recruiting Services and HR Audit Services.

3

• HR consulting services that manage statutory
  compliances cover major regulations that cover
  Payroll, Provident Fund, Labor Law Compliance,
  Shops and Establishment Act, Factories Act,
  Payment of Gratuity/ Wages/ Bonus, Maternity
  Benefit, Compensation, Professional Tax, Minimum
  Wages Act, Contract Labor Regulation and
  Abolition Act, and the Payment of Wages Act, in
  addition to several other such statutes.
  Companies that have a structured approach towards
  HR statutory compliances often record better
  bottom-line and growth. For companies that wish
  to be 100 compliant without the need for a large
  amount of resource utilization, it is always
  advisable to outsource their statutory compliance
  requirements to firms offering HR consulting
  services. It is essential to stay abreast with
  constant amendments made to statutory laws. Even
  if an organization makes sure it has a high level
  of compliance, it may be lagging behind in
  staying up-to-date on new laws. On the other
  hand, HR Audit, ensure they are up to date with
  regular changes made to such regulations in order
  to maintain their competency and expertise.

4
It is therefore advantageous for firms to avail
Recruitment Services so as to not only ensure
compliance but also to avoid the risk of
overlooking or missing statutory changes made at
regular intervals. Outsourcing HR statutory
compliance also implies that company have to
allocate a lesser number of their resources, time
and capital for such activities that can be taken
care of by Recruitment Services for a lesser cost
and that too without the use of the companys
internal resources. This contributes to enhanced
organizational growth and low risk of
penalization.Important acts that govern HR
statutory compliance include ESI, Gratuity,
Professional Tax, Provident Fund, the Maternity
Benefit Act, the Minimum Wages Act, the Payment
of Bonus Act, and the Payment of Wages Act.
5

• The ESI or Employee State Insurance Act is an
  important component of HR statutory requirements.
  This Act was originally applicable to
  non-seasonal factories with 20 or more employees.
  However, it is now applicable to non-seasonal
  power using factories as well with ten or more
  employees and non-power using factories with 20
  or more employees.All employees of factories are
  insured under this Act. The contribution towards
  the insurance comprises of both employee and
  employer contributions at the rate of 1.75 for
  employees and 4.75 for employers. There is a
  ceiling of Rs. 10,000 of the gross salary. HR
  consulting firms make sure the Act is complied
  with, with regards to the contribution period and
  the benefit period.
• For more information visit http//www.accuprosys.c
  om/hr-consulting-firms/

6
(No Transcript)