All organisations, irrespective of their size and stature need to abide by certain rules and regulations. Failing which strict legal actions can be taken against them. These laws ensure the welfare of – the employee, employer, and the organisation. A lot of time, money, and effort goes into compliance with the extensive list of laws. And you cannot afford to go wrong with it.

There’s a pre-defined legal framework within which any given organisation must function. This framework is termed as statutory compliance. Basically, the organisation must treat its employees in a way that is in adherence to various central and state labour laws.

Statutory compliance is beneficial to all – employee, employer and the organisation.
For employees – it makes sure that they receive fair treatment and get their dues on time. It also ensures that the working conditions for the employees is satisfactory and well managed.
As for the organisation and the employer – it maintains clarity of rules and regulations to fall back on. It also saves the organisation from penalties and legal actions. And in turn, creates a trustworthy and safe environment.

For a company, statutory non-compliance can only result in legal proceedings that can have serious implications such as fines, imprisonment, cancellation of licence and so on. By complying, not only can a company avoid all the legal hassles, but also witness spike in employee productivity, which, in turn, will improve business growth as employees are taken care of by the management.

That’s not where the benefits of compliance end. Here are some other fruits of a company being statutorily compliant.

• Attracting Talent

When job seekers know that your company has a pedigree of treating employees correctly, paying them fairly, and never infringing on labour and employment laws, they’ll want to sign up. As mentioned earlier, by statutorily complying, employee productivity, the work environment will only get a boost which will equip employees with the necessary tools to further themselves.

With such a reputation, your company will be able to attract talent and reduce attrition.

• Transparency is Key

Any company that is statutorily compliant draws many eyeballs for all the right reasons. Your vendors, customers, investors, stakeholders, and employees will realize that you are completely transparent and that you take it upon yourself to have contingencies in place to handle statutory compliances without risking legal proceedings and liabilities.

Any business should operate ethically and within the confines of law and order; it’s what will improve their reputation in the long run.

• Excellent Prospects

Being statutorily compliant means adhering to government laws and regulations. A company can leverage this aspect to have the upper hand in any business negotiations. Moreover, business contracts and new prospects will come their way.

• Keeping Fines at Bay

Non-compliance can result in a sea of problems, such as imprisonment, fines, cancellation of licence, and shut down of the business. But if a company adheres, it can divert focus towards other important aspects such as employee retention , operations, expansion and so on. With all the risks and liabilities out of the way, resources are feed up which the companies can utilise for business growth.

• Productivity and retention

Employees need to feel valued. They need to be treated fairly, paid on time, and looked after. When your company follows the statutory protocols for the welfare and well being of its employees, an increase in productivity and employee retention is a given.