From being a Leading Compliance Management Service Provider of the industry and the success which has been achieved on the foundation of a deep understanding of clients’ needs and seamlessly harmonizing it with regulatory and legislative requirements. Acknowledging the consistency and integrity of services offered, to clients across the country, DCSPL witnessed a robust growth that propelled it to enhance its different business verticals and Management of PF & Gratuity Trust Funds is one of such verticals.
Key Facts
Compliance is important for at least Six reasons.
Many start-ups and even small and medium size companies do not even recognize what a compliance function is, let alone why it’s important.
Compliance is the set of processes and organization uses to ensure that employees and the organization as a whole abide by internal rules of conduct and external rules and regulations. It may include your company’s written values, its ethics policy, the employee handbook, and policies for complying with legal obligations (like filing of Returns and Reporting). In large organizations, it may include or be housed within a general counsel’s office. In smaller organizations, compliance tends to reside, informally, within the functions of the chief executive officer, chief financial officer, and head of HR.
Compliance is important for at least Six reasons.
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Outsourcing is a force behind the virtual organization movement. Outsourcing is simply obtaining work previously done by workers/employees inside the company from sources outside the company. If someone has specialized in an activity which is not strategically critical to your business – and is able to do that cost effectively, it is better to get it from outside.
Relationship Network and Liaison is key to progress of any business operations. The landscape of statutes of labour laws is constantly evolving, and it takes a special agility to keep abreast of all the latest developments and ensure compliance. This is possible only by developing an excellent liaison with the department so that latest on the labour laws is always with you. We constantly visit all Government Offices and keep good liaison with all of them so that employers grievances and challenges can be addressed timely and with result oriented remedies supported and assisted by the Departments while availing the benefits from Social Security & Welfare Departments.
Indian labour laws require Abstracts of the certain Acts and Notices to be displayed on the Notice Boards at the employers’ workplace in order to educate its employees as well as visitors to the factory/establishment. These display requirements are mandated to be in English as well as the local language of the State in which the establishment is situated. If the appropriate Government for the employer is central government, then it is also required to be displayed in Hindi. Some States in India have their separate rules, while others follow the rules framed by the Central Government, regarding the display requirements and non-display of such Notices and or Abstracts of the Acts is considered as non-compliance, hence, it is mandatory to display the same.
India has ratified the ILO’s Labour Inspection Convention (No. 81), 1947. Some of the non-negotiable principles are: as frequent and as thorough as possible inspections, free entry of inspectors, free access to workplaces, no prior authorised inspections, and an adequate and well-resourced and independent inspectorate. We being part of said convention, our all Labour Laws has inserted section with the title “Powers of Inspectors”. This has resulted in enormous powers granted to the Enforcing Agencies and its personnel and we have to get along with it till the time major amendments take place under Labour Legislations. No doubt Government has promulgated Self Certification Scheme for increasing EASE OF DOING BUSINESS, however, this Self Certification Scheme has more become nuisance rather than creating ease of doing business.
Orientation means providing new employees with basic information about the topic or area which they are handling. Training programs are used to ensure that the new employee has the basic knowledge required to perform the job satisfactorily.
Orientation and training programs are important components in the processes of developing a committed and flexible high‐potential workforce and updating all the employees about latest under Labour Laws. In addition, these programs can save employers money, providing big returns to an organization, because an organization that invests money to train its employees results in both the employees and the organization enjoying the dividends.
Unfortunately, orientation and training programs are often overlooked due to various reasons, however, we strongly recommend training programs for the employees since lots of changes are taking place under various Labour Laws, especially Codification of the Labour Laws in concise and consolidated form. So how these Codes will impact various industries and its HR functions is an important aspect which needs to be discussed and debated amongst employees of HR and Accounts Department.
Recovery Notice and or show Cause Notice can also be issued by the Labour Department for recovery of contribution, penal interest and or damages etc. So also, Show Cause Notice (SCN) can be issued to the employers for any non-compliance as stipulated under the respective Legislation. In fact, Show Cause Notice (SCN) is the starting point of any legal proceedings against the employer and hence, it essential to address the Show Cause Notice/s and Recovering Notices appropriately and point to point so that when matter goes to the Courts, the case of the Employer should not be defeated or become weak for non-representing the facts before the Enforcing Agencies.
Licensing and Registration is an integral part of any business, whether it is Contract Labour License or Contract Labour Registration Certificate or ESI/PF/LWF Registration. Without registration under Labour Laws, especially under Social Welfare registrations, employer can not carry out his compliance and in the absence of such registrations his liability increases in multiple folds due to delay in payment of statutory dues and accrual of penal interest and damages thereon. It is, therefore, vitally important to carry out the registration of the company s and obtain various license for business continuity. Normally, department gives 15-30 days time for completing such registrations/Licensing from the date of commencement of the business within which employer has to complete the registration foramlities.
These services are normally solicited by the overseas companies not having their accounts department locally in India. Such overseas companies since they do not have their accounts department locally in India, the cheques or payment advise goes to their overseas office and from their after completing due process they send the cheque/payment advise in India which of late results in delay in payment of statutory dues.
Statutory dues being important and critical aspect of for HR as well as Finance department since non-payment of statutory dues or delay in payment of statutory dues would attract penal interest as well as damages from the respective departments and such delayed payment can also be DISALLOWED as ALLOWABLE BUSINESS EXPENDITURE while filing your Income Tax Returns and thus result in double whammy for the Employer. Overseas Companies having their liaison office in India can, therefore, count on us for remittance management at nominal fees.
Nowadays large number business processes are outsourced to Vendors/Contractors and such contractors deploy large number of workers at the premises of the Principal employer. Even though such Contractors are registered under ESI, PF, LWF and various other enactments including licensing under the Contract Labour Act, invariably the compliance carried out by the Contractors is ignored or neglected by the Principal Employer and hence audit of the contactors’ compliance needs to be conducted to understand if the contractor is meeting its contractual obligation. Such compliance audit is necessary to ensure compliance heath check up of the Contractors in respect of the employees deputed at the premises of the Principal Employer and thus insulate the Principal Employer from any eventuality which serve as a critical process for ensuring the Principal Employer and Contractor both are safe and on right side of the Law.
Please note that any non-compliance by the Contractor/Vendor, it is ultimately Principal Employer who is responsible and consequently for any default by the contractors the Principal Employer can be prosecuted.
A lot of your organization’s time, effort and money go into ensuring that the statutory compliance is done on time. From employee’s fair treatment of labour to protecting the company from unreasonable wage or benefit demands from trade unions or aggressive employees, every company faces a worrying number of potential legal issues relating to compliance. However, it may never be a company’s intent to break these laws, but without necessary protection, it may easily slip through the cracks. The word statutory means “of or related to statutes”- rules and regulations. Compliance means adherence. Thus, Statutory Compliance means adhering to rules and regulations. Every country has its own set of state and central labour laws that companies need to comply with. Dealing with statutory compliance requires companies to be updated on all the labour regulations in their country. It is also mandatory for companies to adhere to them. Non-compliance with these regulations can cause a company a lot of legal trouble such as penalties and fines. That is why every company invests a huge amount of money, effort and time to meet compliance requirements from professional tax to minimum wages act. To help in this, the company seeks expert advice from labour law experts.
Every business is unique in how they operate, and that needs to change over time. That’s why we coupled the best-in-class Payroll Solution to bring you a flexible, customizable solution that is simple, affordable, and able to scale with your company’s needs.
It is quite likely that you may be associated with your payroll partner to manage monthly payroll and related compliances. Are you satisfied with the quality of reports that you get from your current vendor?
Our web-based payroll solution helps you optimize the payroll function, mitigate payroll and tax-related risk, and give you more time to do what you do best: Hassle-free Payroll.
DCSPL has been in the payroll domain for over 20 years and is already the preferred partner for 55+ clients. Our payroll outsourcing services cover end-to-end payroll and compliances, including calculation, deduction, and filing of returns for PF, PT, ESI, LWF, and TDS, and year-end investment proof verification.
Give us an opportunity, and we will be glad to walk you through our customised payroll to simplify the payroll process at your organization.
Audit helps to detect non-compliance of Labour and Employment Laws / Labour Codes applicable to a business and take corrective measures to avoid any legal action by the regulators against the business and its management. Labour Law Audit is a thorough check of the company’s policies and procedures to prevent prosecutions and also to increase work efficiencies and trust amongst the employees. Conducting Vendors’ Audit to keep Principal Employer indemnified is also an important aspect of Audit activity.
Start-Up Support Services…… You focus on your business growth AND we take care of the rest. We help in acquiring all sorts of registrations for different types of entities, right from incorporation of the company etc.
Sexual Harassment at a workplace is considered violation of women’s right to equality, life and liberty. It creates an insecure and hostile work environment, which discourage women’s participation in work, thereby adversely affecting their social and economic empowerment and the goal of inclusive growth. With this idea the legislatures enacted the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Compliance with Labour and Industrial Laws has gathered enormous momentum in the last few years. Especially compliance with respect to employees employed through Contractors and off-roll employees is getting more challenging because the Law recognizes principal employer as the one who is responsible in case the contractor fails to comply. This area has assumed significant importance from a risk management perspective considering the legal implications and reputational risks attached with non-compliance. Moreover, ‘Labour Laws’ is very specialized area, requiring additional managerial attention over and above the routine internal audit function.
