Why is third-party compliance Management is required?
Third-Party Compliance management is essential for a country like India that has a vast labour force. Let us see some important aspects of third-party compliance. In recent times with the growth of business activities, labour law compliance in India has gained momentum. If looked deeply, we will find that compliance with labour, Industrial, financial, and corporate laws has gained enormous momentum. Labour Compliance As India is a country with a vast labour force, statutory compliance services are often sought by the corporates to keep pace with the ever-changing laws. Labour laws are considered as a “specialized area,” and the non-compliance can attract severe punishment in the form of penalties or even imprisonment in some instances. To keep pace with the emerging needs and to avoid corporate risks, the companies in India must establish effective contract management. HR compliance services play a vital role in this direction. Labour law compliance in India has gradually gained much attention, and surely the corporates realize its growing importance. Another integral part of compliance management that has recently emerged in India is the aspect of pre-emptive screening of employees. Specific industries such as banking, schools etc. under certain notifications by various authorities and governments are bound to conduct background checks on the prospective employees. Financial Compliance Apart from Labour Law Compliance in India, business compliance is equally important. In the wake of the Satyam Scandal and other such mishappenings in the corporate sector, India has brought in stringent financial compliance laws that are to be adhered to by every company. India, as a country, has complex bureaucratic accounting, tax, and regulatory systems, which makes it a formidable challenge for companies to remain compliant with every financial compliance law as required. Corporates often seek the help of HR compliance service providers to ensure the smooth functioning of their corporate business. However, in recent times government has relaxed many of the regulations for ease of doing business and attracting foreign investments. Goods and Services Tax system was introduced in India by subsuming dozens of state and central indirect taxes on 2017 to transform India into a single market with the ultimate aim of promoting a favorable business climate in the country. Corporate Compliance Besides Labour law compliance in India and financial compliance, companies are expected to adhere to a various corporate agreement as per different laws. Every corporate house needs to adhere to these laws, and many of the times, they eventually seek statutory compliance services provided by the vendors to fulfill these obligations. Conclusion Compliance Management is dependent on various factors such as the scale, size, nature of the business, and the activities being carried out. Effective Compliance management is a sign of good corporate governance. All persons, organizations, and undertakings are targeted at various degrees by the rules of risk and compliance management, and this is essential for a successful business.