Human resources (HR) professionals are responsible for strategically managing employees within an organization while remaining compliant with laws that govern employee rights and employer obligations. If an organization violates these complex and ever-changing regulations, it exposes itself to risk, including court cases, financial losses, and reputation damage.
Since non-compliance can result in such serious consequences, there is a need for HR Managers who possess knowledge of HR laws and common legal issues in the workplace.
Why Do HR Professionals Need Legal Knowledge?
HR roles are not one size fits all. Depending on the title, an HR Manager’s responsibilities can vary significantly. Some HR managers are solely responsible for recruitment, others concentrate on employee development, some deal strictly with compensation and benefits, and others—the generalists—do it all. But regardless of individual job function, compliance is a key responsibility of every HR role. The law touches every profession that falls under the HR umbrella in some way.
The HR managers are required to take on-the-spot decisions that can have severe legal consequences, so knowledge of common HR-related laws gives them the confidence to make these decisions or know when to take the assistance of legal specialists.
HR professionals with legal expertise also have a competitive advantage in the workplace, as they are able to proactively minimize a company’s exposure to legal risk. With working knowledge of current laws and their real-world applications, they help companies remain compliant and avoid unnecessary claims while also protecting the rights of valued employees.These laws are applicable in all stages of an employee’s lifecycle, from pre-hiring processes through rightful termination.
Legal Aspects Every HR Professional Should Know
There are several major legal areas that all HR professionals should be familiar with in order to most effectively serve their employees and employer. Statutory compliance in HR refers to the legal framework which organizations must abide by with respect to the treatment of their employees. Most of your company’s time and money goes into ensuring compliance to these laws.
- Payment of Wages Act, 1936
- The Bombay Shops and Establishments Act, 1948
- The Minimum Wages Act 1948
- Employees’ State Insurance Act, 1948
- Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
- The Maternity Benefit Act, 1961
- The Payment of Bonus Act, 1965
- Payment of Gratuity Act, 1972
- The Sexual Harassment of Women at Workplace(Prevention, Prohibition and Redressal) Act 2013 (POSH)
- The Income-tax Act, 1961 (insofar as it relates to TDS on Salary Income and compliances)
The program focusses on application of the laws and their impact and importance in HR Management and long terms benefits for the organization and the society.
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