Any enterprise that employs 20 or more people automatically falls under the purview of various Acts and Laws in India. Staying compliant with the multitude of laws can become a major problem but not if you have suitable software to take care of compliances. Take a look at the statutory compliances checklist below:
Any enterprise with 20 or more employees whose individual monthly salary is below Rs 21000 must register with the Employees State Insurance Corporation under the ESI Act and make appropriate deductions, deposit it in the government account and file a return as part of statutory compliances.
A business is obligated under the Minimum Wages Act 1948 to pay a fair and minimum wage rate, even if the worker is on a contractual basis. Failure to do so may invite penalties and legal action.
Enterprises with 20 or more employees need to register with the EPFO and deduct contributions from the salaries and deposit it as well as file returns in time otherwise it becomes liable to penalties and even legal action.
The Payment of Gratuity Act 1972 applies to all institutions that employ more than 10 people and it is a contribution the employer makes and appropriate records need to be maintained.
The Income Tax Act 1961 stipulates that employers must deduct tax at source from the salary and deposit such amounts with the IT account along with suitable form 24Q and Form 16 and returns. Similarly, certain employees are subject to payment of professional tax that must be deducted from salary before computing income tax as part of statutory compliance requirement.
Then there are other schemes such as Employee Deposit Linked Insurance in which employers must contribhute 0.5% of the employee’s wage up to a maximum of Rs 6500. Then there is the Maternity Benefit Act, Equal Remineration Act and other Acts to keep in mind and ensure statutory compliance.
It is a challenge to carry out all these processes manually. For one, HR personnel in charge of payroll may not even be aware of all compliances. Secondly, they may not be updated about recent amendments or be able to carry out the process in time. Then they have to prepare a statutory compliance checklist and check each individual item every month.
Enterprises may choose to put in place a suitable statutory compliant software that will handle payroll with time attendance integration and the facility to generate forms, fill them and file with appropriate authorities well in time, with zero error. Another option is to simply outsource statutory compliances and be totally safe. Expert consulting services have the personnel and resources for speedy, precise and error free HR processes.
Employers constantly face the issue of employee turnover and if this happens in the HR department their payroll operations can be affected until a new employee becomes familiar. Outsourcing to Alp Consulting ensures continuity of services and timely compliance with all prevailing rules and regulations. A situation never arises where a government department issues a notice or institutes proceedings and penalties.
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Many Labour Law Compliances such as PF & Misc Provision Act, Factories Act, ESI Act, Minimum Wages Act, Bonus Act, Labor Regulation and Abolition Act, Professional Tax Act, Shop and Establishment Act are required of Indian companies. Establishments spend a significant amount of time ensuring that they are compliant with all these provisions, sometimes with no guarantee of full compliance. Adhering to statutory compliances is necessary for all Business Establishments in India, to keep their businesses safe from the legal issues. The HR Outsourcing Companies have a deep knowledge of Statutory Compliance Management, and help Organizations to minimize the risk associated with the non-compliance of statutory requirements.
How Statutory Compliance Management works?
HR Outsourcing Companies has a unique distinction of maintaining a cent percent Statutory Compliance Management record with regards to both its employees and its clients. Their strong focus on statutory requirements in HR has inspired us to develop a highly sophisticated infrastructure designed to manage the diverse requirements of our clients across India. This infrastructure consists of a sizeable team of Legal and Labor law experts, who possess the relevant academic and practical expertise to address every aspect of Indian labor law.
HR strategies support every aspect of your HR structure, be it Recruitment, Training, talent management or rewards and recognition. They enable you to integrate and optimize all of your HR processes and optimize employee potential. The customized HR Software that HR Outsourcing Companies designs gives the HR Head accurate insight into overall employee performance and data related to personal details, attendance and development. They have developed powerful tools to maximize employee potential and make strategic decisions based on statistical Data summaries.
Talent acquisition is a complex trend increasing rapidly within business. Getting a person with the required skills sets, at a certain time, in a certain location is becoming extremely challenging. Experts at HR Outsourcing Companies have risen to the challenge and act as a bridge between supply and demand of skilled manpower.
How we do it?
Alp has addressed the Statutory Compliance Management needs of businesses of all sizes – small, medium, large multinationals, and across multiple domains. Alp Consulting helps Businesses address important HR functions. Alp has vast experience in aligning human resources and business strategies. We manage critical statutory needs in connection with HR processes, thus bringing significant operational excellence and seamless integrated delivery. Our services will include activities throughout the entire duration of the employee life-cycle, right from recruitment to the time an employee opts for a career change. We partner with client organizations to fully assist them in the transformation of their HR model and to bring about maximum value to the business. Alps Consultants strictly adheres to the Statutory Compliance Management policies of India, which stated simply refers to the legal framework within which organizations must operate, in the treatment of their employees. Our human resource outsourcing services will include activities throughout the entire duration of the employee life-cycle, right from on boarding to retirement or outplacement. We partner with client organizations to fully assist them in the transformation of their HR model to bring about maximum value to the business.