Compliance with labour laws is not a one-time act but a behaviour over time. Businesses and corporate management require obeying legal statutes and regulations with respect to constitutional laws. This covers various concepts such as how the company is managed, how the staff is taken care of and the treatment towards the consumers.
The topic of compliance is to be taken seriously to ensure that corporations act with responsibility. This is vital to every business. And here’s why.
Benefits of bringing in compliance
1. Creating a positive reputation
The public image of a company is directly related to its success. Compliance with laws is a factor that speaks for the company more than anything else
2. Improving productivity in the company
When the employees are taken care of well, it creates a positive environment in the workplace thereby enhancing productivity.
3. Building trust in the environment
Consumer trust is created with compliance with the laws. Court cases due to failure in obedience with the law lead to dropping in sales of products and services.
Internal compliance concerning safety, remuneration, employee benefits and compensation, etc. play a crucial component in the labour laws. Obeying the laws brings about satisfaction amongst the employees. All complaints and issues are monitored and addressed with diligence before it snowballs into a huge problem and affects the corporation. This works both ways.
Elements of the labour law
The fundamental subject matter of labour law can be considered under nine broad heads:
Employment: Basic component
individual employment relationships: the making, amendment and termination clauses involved
wages and remuneration: All forms of compensation and protection of wages against unfair practices
conditions of work: Ensure a safe environment with appropriate gear, adequate rest and vacations
Health, safety, and welfare: The employees come first. Ensure welfare facilities
Social security: Includes compensation for accidents, maternity leave, etc.
Trade unions and industrial relations: Legal representatives of the employees and protection of their rights
The administration of labour law: Includes labour department, labour inspection services, and other organs of enforcement
Special provisions for particular occupational or other groups: Special provisions with respect to specific occupational and other groups
The labour law insists on maintenance of proper records with respect to salary paid, deductions made at source, filing and all records related to the employment at hand. Be it a Retainer, Contractor or Remote, there must be no gap in the records. The laws will vary based on the kind of contract that is being signed up.
The consequences for non-compliance is more than just paying a fine. It involves jail time for employers as seen recently.
“Jail time for employers that exploit workers and a national labour-hire licensing scheme was among 22 recommendations called for in a report by Australia’s Migrant Workers’ Taskforce that was accepted Thursday by Australia’s coalition government, according to an announcement by Jobs and Industrial Relations Minister Kelly O’Dwyer.”
What does this imply?
Compliance of labour laws brings with it the protection of those who abide by the law. This means that employers who follow protocol are entitled to many rights. Labour laws clarify and codify business owners' obligations to their employees. The labour movement has a long history of lobbying for laws that protect workers rights, improve worker safety, prevent child labour and increase workers' bargaining power relative to their employers.
“The exploitation of workers in Australian workplaces is not only illegal, but it also harms individuals, undercuts law-abiding employers and reflects poorly on Australia’s international reputation,” O’Dwyer said.
Only the most serious and egregious cases of labour exploitation would be subject to criminal penalties, O’Dwyer said. Not employers that accidentally or inadvertently do the wrong thing.
We at GOHLS are sticklers for compliance of the local laws of the land. Understanding international labour law is vital when you take your business operations overseas. Frequent changes in the laws of different country’s legal system bring in various complications. Take in a global employment partner to understand the various concepts. This will not only avoid delays in your paperwork but also ensure that the plan to expand your business does not get impaired in any way.
The importance of maintaining Compliance of labour laws is very simple. It leads to the protection of both employers and employees. The laws explicitly state the requirement of the employers and provide protection to those that abide by it. In case of non-compliance, the legal provision will not be applicable. GOHLS can bring these value adds to your table while you focus on your core job. Don’t let paperwork stop you from spreading your wings.