Categories of Statutory Compliance Activities

Consequences and risks of non compliance

Posted by on October 11, 2016

There are numerous compliances under several legislations that companies are required to comply. Some of these compliances are critical and some are not so critical. Here is a quick overview of how the compliance activities are categorized in CompliCheck:

Statutory Payments: Statutory payments include various payments that are required to be submitted by employers. There is a due date for making these payments and typically there is fine or interest for delay in remitting the payments. These are most critical compliances and most companies usually comply as there is plenty of awareness around this compliance. The computation of the amount to be deducted or deposited is properly documented and most of the ERP or Payroll systems compute the amount. Tracking these compliances are free in CompliCheck. These types of compliances require documentary evidence.

Filing/Returns: Returns or filing challans is a way to notify the authorities that various payments and related responsibilities have been met by the employers. These are also very important as there are penalties, fines & other penal provisions. CompliCheck treats those as high priority compliances. Similar to the statutory payments, the awareness of these compliances are also very high or may be slightly less than statutory payments. Tracking theses compliances are free in CompliCheck. These types of compliances require documentary evidence.

Registrations/Licensing: These include obtaining timely registrations/license to commence work, timely renewal & closure/cancellation in an event of closure of business or establishment. These are very critical compliances and due to lower awareness these carry highest risk to the companies.  These carry fines (many of these fine compound over the period of time) and other penalties. For authorities that bully organizations treat these lowest hanging fruit. Companies that comply with these without fail need not fear the authorities and can carry out business fearlessly. You can track these compliances in Starter Edition onwards. Soon these compliances will be a separate module in CompliCheck.  These types of compliances require documentary evidence.

Display/Notices: These compliance include various notifications and displays. These are more common in labour compliances and mainly for the manufacturing companies or medium to large size companies. The priority is high but it is typically a onetime compliance that need to done once and then monitored regularly.  You can track these compliances in Advance Edition onwards. These types of compliances typically do not mandate documentary evidence.

Records/Registers: Another set of compliances more commonly part of the labour laws (though other compliances also involve these types compliances) that require employers to maintain proper documentation as per the government guidelines through various legislations. The priority of these are medium as these registers are to be maintained by the employers and are sometimes required to be produced. These types of compliances mandates documentary evidence.

Policy/Procedures:  These are more common in labour laws, building laws and environment which involves instructions or statutory guidelines.  These are not critical compliances in terms of maintaining any documents or record keeping but companies are required to follow these guidelines to stay compliant. These consists of ongoing guidelines like maintaining infrastructure, due procedures, timelines of salary disbursement, ensuring wellbeing of the workforce etc. Documentary evidence is typically not required as these are mainly procedural guidelines. These are available for Advanced and Enterprise Editions.

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