Published on 12 Jul 2022
In today's globalised economy, companies are facing increasing compliance risks, especially when operating within multiple regions and countries. Corporations that have to adhere to global HR compliance are especially susceptible to this due to the differing complexities in labor and employment laws in different countries. As a result, managing your distributed team while maintaining compliance can be difficult. Whether you're a global corporation or a local startup, HR compliance is critical to protect your people and business.
What is HR Compliance?
HR compliance refers to the set of laws and regulations that employers must follow to ensure a safe and fair workplace. The rules that apply to a company's operations are different in each country. As a result, businesses must be familiar with all applicable laws and stay on top of the ever-changing regulatory mandate to avoid potential liability for non-compliance problems.
While the statutory compliance requirements for HR differ from country to country, the vast majority cover topics such as minimum working age, minimum wages, total working hours, and termination procedure. Employers must also have policies and procedures in place to prevent discrimination and harassment in the workplace.
Common Challenges Faced in Compliance Management
And as anticipated, this daunting task comes with a handful of challenges. Keeping up with the ever-changing compliance landscape is easily one of the more challenging tasks when trying to be compliant. HR executives must have a high level of compliance knowledge, including all the statutory requirements that apply to their organisation. Organisations with a global footprint must also cover multi-country HR, tax and other affiliated regulatory updates.
Another challenge is managing employee data. Employers must have mechanisms in place to keep track of employee data, hours worked, and leave taken. All data collected must also be accurate, up-to-date, and kept confidential. This is a highly time-consuming task as there can be much data to handle.
Last but not least, compliance with payroll taxes. Payroll taxes can be complicated, and ensuring that all taxes are paid on time is crucial. Companies must also ensure that their payroll taxes are up to date and that their employees are paid the correct amount. The task gets even trickier if you're a global corporation. And to make things even harder, regulators and employees expect you to comply with new legislation immediately, and if found non-compliant, your company may be subject to litigation.
Ways To Be Compliant With Both Local & Global HR Laws
Numerous tools and software are available to assist employers in achieving compliance. Employing resources like an HR compliance checklist or dedicated software can enable employers to stay informed about relevant compliance regulations and streamline various compliance-related responsibilities, such as monitoring employee work hours and handling payroll taxes.
An alternative and effective approach to handling HR compliance is to outsource compliance functions to HR compliance experts. This approach liberates a significant amount of time and resources, allowing HR to concentrate on more strategic tasks.
At OS HRS, we have an in-house statutory compliance unit that tracks global HR regulatory updates for our clients. This includes keeping up to date with the latest compliance developments, ensuring that our clients' payroll taxes are compliant, and providing advice on compliance-related issues. Our team of experts can assist in navigating the complexities of multi-country HR compliance and ensure that your business is in accordance with all relevant laws and regulations.
Global HR compliance is complex and challenging, but it must be done. The risks of non-compliance are simply too great. By utilising the right tools and expert help, you can ensure that your organisation is compliant and protect your people and your business. Contact us today if you would like to learn more about complying with global HR standards.