April 04, 2012Business compliance has become the need of the hour due to economic slowdown and escalating rate of inflation. SANGEETA YADAV talks to K Vardhan, business head, Aparajtha, to know more
- How can one make his business risk proof in the present scenario?
All industries and companies have to abide by the laws. The most important thing to do is to fulfill the obligations imposed by the Government or the society. When we do that, we can avoid risk and other things become mostly internal. Moreover, one needs to have smart compliance mechanism into the business.
- What are smart compliance mechanics?
It is required to maintain daily reports drawn out on a daily, weekly, monthly, quarterly or annual basis. You need to be active to generate new ideas.
- What are the statutory compliances in HR?
A set of labour laws will be applicable to any business house which is based on the size of the organisation. Certain compliance activities will be organisation-specific (like doing registration) and certain other activities will be employee-specific (like covering the employee under Employees’ State Insurance Act (ESIA), provident fund (PF), etc.). The third type of activity is environment-specific (related to health, safety and welfare). The compliance activities can be summarised into maintenance of registers, submission of returns, remitting the statutory contributions, arranging for display of abstracts and notices, possessing valid registration certificates or license, and ensuring health, safety and welfare.
- What is the importance of compliance for HR managers?
Ensuring compliance is an integral part of the job description of any HR manager. Besides focusing on developing individual competencies, the HR managers also should ensure compliance in the interest of the organisation. Any corporate body needs to navigate this potential landmine to make success out of their business, especially when growth means you hire more people spread across small towns and cities.
- What is the necessity of compliance as a social security mechanism for an inclusive growth of the economy?
There are certain social security legislations like ESIA, PF, Gratuity and Bonus. Employees will get medical treatment through ESI dispensaries and attached hospitals. Employees will get lump sum amount as a support by way of PF and Gratuity at the time of retirement. Pension is also given after 58 when an employee is covered under PF.
- What compliance solutions would you like to see in the coming years?
We would like to bring more and more law-abiding corporate citizens. We are aiming at simplifying the compliance process, given the technology available today. By properly supporting the corporate companies, we would like to reach out to as many people as possible and help them get their due benefits.