What is HR compliance
HR compliance refers to ensuring that a company’s policies and procedures are in line with legal requirements and ethical principles. This means adhering to laws, regulations, and industry standards that govern human resources practices.
For instance, employers in Singapore must abide by various labor laws, including the Employment Act, Central Provident Fund (CPF) Act, and Workplace Safety and Health Act, among others. Singapore employers should also follow Tripartite Guidelines laid out by the Tripartite Alliance for Fair & Progressive Employment Practices.
Companies operating or looking to scale regionally or globally should also look at maintaining a consistent process of work culture within the organization across the globe.
Areas of HR compliance include:
Equal Employment Opportunity: Ensuring non-discrimination in hiring, promotion, compensation, and other employment practices.
Wage and Hour Laws: Complying with minimum wage, overtime, and child labor laws.
Safety and Health: Providing a safe and healthy work environment.
Data Privacy: Protecting employee personal information.
Employee Benefits: Ensuring compliance with benefits laws, such as health insurance.
Leave Laws: Adhering to laws related to family and medical leave, paid time off, and other leave entitlements.
Why is HR compliance important?
One of the most pressing reasons for compliance is to prevent legal repercussions. For example, in Singapore, employers who fail to pay CPF contributions according to the CPF Act may be liable to late payment interest, fines of up to $10,000, and up to 7 years of imprisonment, depending on the offence committed.
Apart from avoiding legal penalties, HR compliance helps with maintaining company reputation and building a great workplace. Breaches of laws and regulations are typically covered in the media. At the same time, the Ministry of Manpower maintains lists of employers convicted under the Employment Act, Workplace Safety and Health Act, and the CPF Act.
By adhering to laws, regulations, and industry standards, companies can protect their reputation and create a positive and trustworthy work environment where employees feel valued and protected.
Challenges of ensuring HR compliance
In recent years, the rise of remote work and addressing data privacy concerns in the digital age brings an added layer of complexity to ensuring HR compliance.
However, the key challenge most companies face when ensuring HR compliance is keeping up with the complex regulatory landscape of constantly changing laws and regulations. This is particularly challenging for multinational companies.
For instance, in Asia Pacific and Middle East, one commonality across most countries is that managers and directors of a company can be held criminally liable for violations of employment laws.
A quick snapshot gives an insight into the various regulations employers across the region have to take note of:
In the Philippines, providing or using labor-only staffing services is illegal.
In Australia, legal entitlements to salary, leave, severance and other employment benefits vary depending upon which of approximately 100 different industry and occupation-specific awards applies.
When ensuring compliance, the devil is in the details. Even countries such as Japan, Thailand, and Korea where there is a quota on employing disabled persons, the details significantly vary.
How to ensure HR legal compliance
To ensure HR compliance, organizations can:
Identify relevant compliance obligations based on factors like location, industry, and business size.
Stay updated on legal changes by subscribing to industry newsletters or following relevant news sources.
Assign compliance responsibilities within the HR team, potentially hiring a dedicated compliance officer.
Create an HR compliance checklist to cover areas like recruiting, hiring, company policies, and employee handbooks.
Ensure consistent application of HR policies through clear procedures, documentation, and manager training.
Regularly audit HR policies to ensure compliance and update them as needed.
Apart from managing it internally, collaborating with local experts or partnering with HR service providers is one way of ensuring compliance with local laws and regulations.
Companies can mitigate compliance risks by leveraging on the expertise of HR service providers, like ManpowerGroup, for the following:
Outsourcing of specific business operations or tasks
Staffing services
Payrolling services
Outplacement of excess employees
HR Compliance
Why choose ManpowerGroup
ManpowerGroup is a leading provider of workforce solutions, with over 75 years of experience and unmatched expertise in sourcing and managing talent.
Here's why we're the ideal partner:
Deep-rooted Expertise: Benefit from ManpowerGroup's decades of experience as a global leader in HR services.
Global Reach: Our extensive network ensures compliance with local labor laws worldwide.
Proactive Solutions: Our experts identify potential risks and develop tailored compliance strategies.
Technology-Driven Approach: Leverage our advanced technology for efficient processes and data security.
Avoid Legal Penalties: Our expertise helps you proactively address compliance issues and minimize financial risks.
Foster a Positive Workplace: Compliant HR practices improve employee morale and satisfaction.
Strengthen Your Reputation: Demonstrate your commitment to ethical business practices and attract top talent.
Ready to start? Contact us to learn how we can help you.
ManpowerGroup in Asia
By partnering with ManpowerGroup, you can help your business mitigate common risks of non-compliance in Asia related to:
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ManpowerGroup, with a strong presence across the Asia-Pacific and Middle East, including Singapore, Malaysia, Thailand, Vietnam, India, Japan, and Australia, offers deep expertise in HR compliance, local laws, and regulations. The following table showcases some examples of employers' obligations and possible penalties that come with violating them in various countries within the region.
Countries and the nature of violation of employer obligation
Country | On-time payment of wages | Payment of statutory costs | Payment of withholding taxes | Lawful Termination | Discrimination & Forced Labor |
Vietnam |
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Philippines |
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Thailand |
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Country | On-time payment of wages | Payment of statutory costs | Payment of withholding taxes | Lawful Termination | Discrimination & Forced Labor |
Australia |
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India |
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Korea |
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Singapore |
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Contact Manpower today for a free consultation and discover how our customized solutions can help your business thrive in the region and globally.