In the world, Companies invest, time, effort, into ensuring HR and payroll complaints through a statutory audit and laws and regulations. Statutory Compliance is a legal framework of the organization's function. This pre-design framework is called statutory compliance. The organization must manage its employees in the way of adherence to the state labour laws.
Adhering to compliance is important for all types of big and small businesses to keep safe and away from legal issues. A deep understanding of compliances is required to reduce the risk associated with the non-compliance of statutory requirements.
The meaning of "Statutory" is related to "Rules & Regulations", and "Compliance" means "Commitment". It also deals with employees professionally and ethically.
Why Important is Statutory Compliance?
Every country owns state & labor laws, so companies need to follow them. Companies require to be updated on the rules & regulations in their country.
Information about compliance procedures helps organizations decrease risk. always prepared for conflict and other situations, if anything rises.
Small and medium-scale businesses plan to expand their business compliance procedures to help them work efficiently in a large setup.
If the organization in India does not comply with central & state labor laws, It can be a serious issue.
1. Loose company reputation and goodwill.
2. suspension and cancellation of operational licenses.
3. loss of existing and potential customers.
4. Negative impact on the company productivity.
5. Imposition of fines
6. loss of integrity
7. Shutdown of the company when goes extreme level.
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