What is HR compliance

Last updated: 2023-11-30

What is HR compliance?

HR compliance means aligning company HR processes and policies with applicable labor laws together with industry-specific regulations. It covers all procedures, policies, HR agendas, employee contracts and agreements. 

  • building policies and procedures that ensure your organization follows up-to-date labor and employment laws and regulations.
  • enforcing the procedures to ensure all employees follow them 
  • HR compliance is essential to every company because employer's need to meet legal responsibilities. Non-compliance leads to fines, penalties, and lawsuits

What are the main layers of HR compliance?

Statutory and regulatory HR compliance

  • Ensuring an adherence to legislation around labor laws, employment and the workplace
  • Company must follow the rules of a specific regulatory body, such as health and safety (OHSA)  
  • Employers must follow global, country’s, state’s and city’s regulations

Contractual compliance

  • The compliance with regulations and terms your organization is bound by labor law
  • This can be a contract between your company and partner organizations or your employees. 

Employee compliance

Data protection compliance

  • HR technology platforms must be compliant with regulations and protect personal data
  • protecting employee data rights such as the GDPR or HIPAA

Union law compliance

  • Some companies may deal with union workers
  • The company must be aware of the rules set by these unions and adhere to them