Regardless of what industry they are operating within, every company has to adhere to numerous different regulations and laws in order to remain compliant. This covers a range of different things, including security, finance, safety, health etc. If a company, for whatever reason, fails to comply with any of these regulations or laws, then they may find themselves subject to facing regulatory actions, fines, or something even worse. This is why making sure that your business remains compliant with these things is so important.
What is it?
Compliance management is the steps and processes a business takes in order to remain legally compliant with various different laws and regulations. It is made up of a variety of documents, security controls, audits, policies, procedures, as well as tech enforcement. Each of these things are used for the purpose of tracking workers to see what they are doing and if your company is operating in a way that is compliant or not.
As a general rule of thumb, a business should have a comprehensive plan in place for making sure that all of its activities remain compliant at all times. This needs to be changed and amended as and when laws, regulations, and contracts change and develop.
Why businesses need it
Businesses need to ensure that they remain compliant at all times so that they can legally continue trading. If your business fails to remain compliant then it may be fined or even shut down and prevented from trading. These things can have a serious impact on any business which is why it is so important that they remain compliant.
Whilst all business owners know that being compliant is important, the actual task of doing so is not always that easy. This is why so many businesses out there invest in good quality compliance management software that enables them to keep on top of everything. With there being so many different areas of compliance to be aware of, it can be difficult to keep track of them if you are not being proactive. This is why it pays to invest in a good piece of compliance management software to help with this.
Some of the most common types of compliance issues that businesses run into problems with are listed below.
- Immigration laws – with more and more businesses relying on diverse worker pools, it is important that they are fully aware of the rules surrounding employing immigrants or workers from overseas. There are many different rules and laws that need to be followed here in order to remain compliant.
- Wage and hours laws – there are strict laws in place for workers, specifically surrounding their wages and the number of hours they can legally work. For instance, in relation to hours worked, there are mandatory minimums and there are regulations relating to overtime also. Businesses have to worry about these various wage and hours laws each and every time that they change, so that they stay compliant with them.