With regulations and legislation changing constantly, ensuring that your business remains compliant has its challenges. The ever-changing world means that sometimes it is hard to keep up to date with everything you need to do as a business and HR is no exception to this.
If the last two years is anything to go by then we know how much things can change and how quickly this can happen.
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What is HR compliance?
HR compliance is a process of defining policies and procedures to ensure as a business you follow the standards of applicable laws and regulations. Not only can this affect your policies, procedures and documentation but also your day-to-day responsibilities.
It can be broken down into three elements:
- Statutory compliance – the legal obligations in relation to legislation
- Regulatory compliance – the legal obligations regarding regulating bodies
- Contractual compliance – obligations between a company and its employees
Statutory compliance is governed by the laws which are set and enforced. These laws can often change and often do so on an annual basis, as with the National Minimum wage increase but can also be as a result of a tribunal ruling or other external factor. It is always a good idea ensure you keep up to date with any legislative changes that might affect your business like the Good Work Plan 2020.
Regulatory compliance could be in relation to GDPR (General Data Protection Regulations) or from a Health and Safety perspective via the HSE – Health and Safety Executive. It is important you follow these guidelines to ensure you are compliant.
Contractual compliance refers to the agreement you make between your organisation and your employees. You must ensure that employees receive all the entitlements due to them as set out in their employment contract. This can also relate to any third parties that you work with. Adhering to the agreement you have in place is a legal requirement from both parties.
The reality is that, if you fail to meet any of these obligations, you could face fines and civil proceedings.
Carrying out an HR audit
Carrying out an audit on your HR data often helps you identify any documentation that might be out of date, missing or if you are storing things you don’t need to. It will also enable you to identify any compliance gaps between your data and GDPR requirements.
The audit should include personal data on employees, workers, job applicants and any other individuals with the HR area of responsibility. You need to ensure you cover anything that you are storing as well as any third-party systems.
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How do you ensure you remain compliant?
Keeping up to date with employment law and ensuring all your documentation is correct can seem quite a daunting task. However, don’t panic. Click here to visit our very useful compliance testing tool. All you need to do is enter a few details, complete 15 quick questions and within 10 minutes or less, you can have your score to see how compliant you are! Simple!
There are no strings attached to this and no charge! It is quick, easy and free!
It gives you the opportunity to confidentially see where you are and if there is anything that worries you, you can always contact a member of our HR Team at MAD-HR who will be happy to assist you.
With legislation constantly changing, it is important you keep your employment contracts, policies and procedures up to date, along with ensuring the people within your team are trained to manage them correctly. This ensures you know that the right processes are being followed correctly. This could be in relation to performance management or making sure you have all the right documentation on file for a new starter. Sometimes it is simply just knowing what holiday someone is legally entitled to or what the National Minimum/Living Wage is.
Knowing where to find the information can be the biggest challenge, however here at MAD-HR, we are always happy to help. If you would like to discuss anything in relation to your Organisation’s HR Compliance, please contact a member of the MAD-HR team who will be able to assist you.
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact us.
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