As a business owner, employer, or employee, you’ve more than likely heard of human resources (HR). Maybe you know the basics, but you’re unsure how to ensure your company complies with the HR laws set out in your area. That’s why we’ve created our expert guide to help you get to grips with HR compliance in the UK.
What is HR compliance?
UK employment law sets out working standards to which every business must adhere. Ensuring you are following these standards is known as HR compliance. This includes implementing protocols so that your employees understand and follow the guidelines and creating policies and procedures for the business as a whole.
Being HR-compliant shows employees that your company is serious about the workplace environment and wants to promote fairness, respect, and positive productivity. Compliance can also help your business avoid penalties and lawsuits while mitigating legal liabilities.
Why is HR compliance important?
Aside from protecting your business from potential legal lawsuits, penalties, and risks, adhering to HR compliance also means that the business meets its legal obligations and ethical standards governing employee rights and workplace practices. In turn, this will develop trust amongst the employees and promote positive employee relations. This can be important for some Companies when bidding for work as there is an expectation from lots of large companies that polices are in place and followed.
Who is responsible for HR compliance?
A company must have an HR department or person responsible for directing employees to human resources-related help. This person or team also keeps track of employment-based laws and new rules and regulations regarding the workplace. This can be someone external or an external HR Company that specialises in this area.
They are also responsible for conducting employee training and addressing compliance issues if and when they arise.
Although specific employees are employed to work in human resources, the company must ensure its managers have the skills and experience to work reasonably and maintain a compliant work environment.
Different types of HR compliance
If you’ve ever wondered ‘what is legal compliance in HR’, there are several types of HR compliance that play a role in this:
Statutory compliance
Statutory compliance includes the government’s legal requirements and the laws that a business must comply with. For example, they must meet minimum wage regulations.
Regulatory compliance
Regulatory compliance refers to the procedures and practices required in an industry specific to the company. For example, insurance providers must meet all legal requirements exclusive to the insurance industry and follow GDPR rules.
Contractual compliance
Contractual compliance simply ensures that both parties in a contract fulfil their contractual obligations. This may include fulfilling their financial responsibilities, meeting deadlines, or achieving promised results etc. Some HR polices may also be contractual, these should be made clear in the policy and/or employee handbook.
Why should you follow HR law?
Minimises legal risks
If HR law is followed, lawsuits and fines are less likely. Your company’s reputation will remain positive, and it will set a standard for the company’s future.
Promotes a fair work environment
If employees know there is a reliable HR team or HR department, it will build employee relationships and trust. It also reassures employees that there is assistance should they need it.
Keep on top of industry and regulation changes
If you always comply with HR law, you’ll remain aware and cautious of employment changes. Your employees will stay informed, and the company will make changes efficiently.
Leaves room for improvement
If you follow HR law by the book, you can focus on improving your HR department’s efficiency instead of stressing about possible lawsuits etc.
Continue building a successful brand
Showing your commitment to employee satisfaction and legal procedures presents your company in a positive light. It also suggests that the company is a desirable place to work. This may expand your opportunities for growth and increase employee retention.
How can you ensure your business is compliant?
Here is a small HR compliance checklist to ensure your organisation does everything possible to maintain workplace compliance.
- Stay informed and updated – Employment laws and regulations change regularly. Staying on top of these changes is vital for HR compliance success.
- Conduct regular HR compliance audits – This will highlight areas in the company that need focus. You can direct resources and improvement measures towards these areas.
- Outline clear HR policies and procedures – Ensuring employees are aware of these policies is key. Regular training sessions can be used to increase awareness and understanding! Digital employee handbooks can be created and consistently updated to maintain an awareness too.
- Stay with the times – Utilising HR software will increase the ease and efficiency of working with HR data.
- Work to establish a positive work environment – If all employees are expected to collectively contribute to a compliant workplace, it will most likely become and remain a compliant workplace! See to employee concerns and reports with professionalism and an understanding nature.
How Can Trusted HR Help?
If your business needs help with an HR issue, problem or project, our team of professional HR consultants can help. Our team members are fully qualified, up to CIPD Level 7, with many years of experience, and can help you manage your case to its successful conclusion.
Whether you need short, medium or long-term support, our HR consultancy service is the perfect solution. Trusted HR provides valuable, professional consultancy to various organisations across the UK. Our team can assist you daily with various projects, such as a pay review, TUPE or redundancy, offering guidance, advice and recommendations to help your business grow. If you require ongoing assistance, we also offer three levels of retainer HR support.
We know that every company is unique. That’s why everything we do at Trusted HR is tailored to our clients. Our HR consultants focus on your organisation’s values and goals to create bespoke HR documentation and personalised recommendations.
We can help with:
- Employee Contracts and Handbooks
- Change Management
- Organisation Design and Development
- Employee Wellbeing
- Absence and Performance Management
- Conflict Resolution
- Managing Conduct
- Management and Leadership Development
Request a consultation to learn more about how our expert consultancy service can help your organisation succeed. Trusted HR offers a free, 45-minute, no-obligation consultation on any HR issue to help you get started.
