When we talk about compliance, this typically encompasses a number of things. For example, appropriate employment classification, health and safety regulations, correct entity setup, tax obligations, termination procedures, leave policies, and various other aspects that either directly or indirectly influence employment.
Generally speaking, compliance refers to the practice of adhering to laws, regulations, standards, and ethical practices that apply to an organisation’s operations within a given country. Overlooking compliance can result in legal penalties, financial loss, and overall damage to the company’s reputation, which is why it’s so important to be proactive about understanding the local requirements at the point of setting up company operations.
However, not all of these areas would fall under the HR Compliance umbrella or be under the HR department’s careful guardianship. Areas that do fall under HR Compliance include things like employment contracts, worker classification, occupational health and safety, breaks and right to disconnect, company policies and others.