Written by Harshini Elliott, Senior HR Partner, Essential HR
HR compliance is a critical aspect of managing your business, as it ensures that all employers meet their legal obligations. Failure to comply with these obligations can expose you, as a business owner, to legal risks, financial penalties, and harm to your company's reputation.
The average cost of non-compliance in an organisation continues to grow with shifting workplace policies, an ever-challenging hiring climate, and evolving regulations. As a result, more and more organisations are bringing compliance to the forefront of their strategies to ensure business continuity.
Achieving mastery in HR compliance requires a comprehensive understanding and adherence to the various laws, regulations, and best practices governing the employer-employee relationship. HR compliance serves to safeguard both your business and your employees. To guide you on this journey, here's a step-by-step roadmap consisting of 18 crucial elements:
Stay Abreast of Relevant Laws and Regulations: Continually educate yourself on federal, state, and local labor laws and regulations, keeping pace with any modifications.
Establish an HR Compliance Program: Develop a tailored HR compliance program that encompasses policies, procedures, and guidelines designed to meet your business's unique needs.
Audit Current Practices: Thoroughly assess your current HR practices to identify areas where compliance may be lacking, or improvements are needed.
Create Clear Policies and Procedures: Craft and maintain transparent and consistent HR policies and procedures, ensuring employees have easy access to these documents.
Formulate an Employee Handbook: Develop an employee handbook that clearly outlines company practices and expectations. Ensure all employees receive and acknowledge receipt of this handbook.
Prioritise Training and Education: Provide regular compliance training and education for HR staff, managers, and employees, covering topics such as anti-discrimination, harassment prevention, and safety protocols.
Maintain Records and Documentation: Establish and maintain organised employee records, including personnel files, payroll records, and compliance-related documents.
Comply with Equal Employment Opportunity Laws: Adherence to EEO laws, including Australian Human Rights Commission Act 1986, Racial Discrimination Act 1975, Sex Discrimination Act 1984, Disability Discrimination Act 1992, Age Discrimination Act 2004, Fair Work Act 2009, Equal Opportunity for Women in the Workplace Act 1999 and relevant State and Territory Legislation.
Wage and Time Tracking Compliance: Understand and comply with wage and Time Tracking laws, which govern minimum wage, overtime pay, and record keeping.
Prioritise Health & Safety Compliance: Implement health & safety programs to comply with Workplace Health and Safety laws and regulations. Regularly inspect the workplace for safety hazards.
Safeguard Privacy and Data: Protect employee data and adhere to privacy laws, such as the Privacy Act 1988 and the Australian Privacy Principles.
Whistleblower Protection: Establish mechanisms for employees to report compliance concerns without fear of retaliation and have a defined process for handling whistleblower complaints.
Implement Anti-Harassment and Anti-Discrimination Policies: Enforce policies that prevent and address workplace harassment and discrimination, conducting thorough investigations into complaints.
Seek expert advice: Consult with employment and workplace compliance experts to ensure your business is fully compliant with complex laws and regulations.
Use technology to automate and streamline: Unify and streamline your HR processes with an all-in-one HR platform, automating compliance is an easy way to stay on top.
Encourage Employee Feedback and Communication: Foster open lines of communication for employees to provide feedback on compliance issues and address concerns proactively.
Document Everything: Maintain thorough documentation of all compliance-related activities, including policy changes, training records, and investigations.
Regularly Review and Update Your Compliance Program: HR compliance is an ongoing process. Regularly review and update your compliance program to adapt to changing laws and business needs.
Keep in mind that HR compliance requires continual attention, and being proactive is crucial for achieving mastery in this area. Regularly evaluate your practices, adapt to shifts in the legal landscape, and make compliance a top priority in all HR-related activities to safeguard your organisation and its employees.
HOW CAN WE ASSIST
Essential HR specialises in ensuring comprehensive HR compliance to mitigate potential risks to your business. If you're interested in learning more about the services Essential HR provides and how we can assist you in implementing these steps within your company, please don't hesitate to reach out to us now.