If we break down the word Statutory Compliance, statutory means required, and Compliance is a state of following a rule or command. The two words are put together to form an important term for a practice that every organization must incorporate into their systems. To be able to answer the question 'what is Statutory Compliance?' You need to know that the people in any company or business are the most vital amongst all the other things.
All organizations have one common thing at their core: the people. Without the people, an organization cannot function. When we say the people, we refer to the company's employees, who work in various roles and departments to help the organization meet its objectives.
It is a fact that, for a company to function efficiently, it needs to be organized and streamlined, with proper norms and regulations set in place. These regulations extend to every aspect, including its relations with its employees and how it deals with its finance, and this is known as statutory Compliance.
Thus, if you want to answer the question, what is Statutory Compliance? In HR terms (relating to payroll and taxation), Statutory Compliance is the legal structure within which a company must operate regarding the treatment of its employees.
Now that you exactly know what is Statutory Compliance, you must understand that every country has its own set of state and central labour laws that companies need to obey. In India, various Statutory Compliances relate to the various labour and taxation laws prevalent in the country.
In the case of Statutory Compliance, the companies need to be updated on all the country's labour laws. Plus, it is also compulsory for them to comply with them. Non-compliance with the laws can cause any company trouble, such as penalties, fines or even worse consequences. That is why every company participates and invests a huge amount of money, effort and time to meet the requirements of Statutory Compliance in India.
Here are some of the labour Acts in India that the companies have to comply with in order to maintain Payroll and Statutory Compliance:
The Workmen's Compensation Act
The Trade Unions Act
The Payment of Wages Act
The Industrial Employment Standing Orders Act, 1946
The Industrial Disputes Act, 1946
The Employees' State Insurance Act
The Minimum Wages Act
The Factories Act
The Employees Provident Fund & Miscellaneous Provisions Act
The Employment Exchanges Act, 1959
The Apprentices Act, 1961
The Payment of Bonus Act, 1965
The Contract Labour 1970
The Payment of Gratuity Act, 1972
The Equal Remuneration Act, 1976
Inter-State Migrant Workmen Act, 1979.
The Child Labour
To get a clearer picture here, let's look at the tax compliances that companies are required to give equal importance to:
The Payroll and Statutory Compliance part of an organization's function is more than just values, regulations, and data. It is about exhibiting and verifying accomplishments and complying in the most efficient manner. With our services, you can sustain a solid foundation for your future business goals.
Our professionals handle all their practices and functions while also explaining the when, how, and why of the plan and implementation procedures to facilitate readiness for any threat or unwarranted situation.
At TRC Corporate Consulting, we have a robust Statutory Compliance team that helps turn your business achieve sustainable growth and ensure work in the long run. If your plan is to accomplish a competitive lead, an enhanced brand image, and lucrative financial returns. Contact us for more details!
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