The HR functions of an organization have to be in accordance with the legal framework of the industry and the government. The HR professionals must understand the various laws governing them to avoid any costly mistakes that can hamper the reputation of the organization. Many small-scale organizations have implemented HRMS not only for meeting their human resource requirement but also to maintain the regulatory compliance affecting the employees and the organizations. Let us have a look at the key functional roles of HRMS in maintaining legal stipulation of an organization.
Protection of employee rights
- Employee rights are one of the most important issues affecting the organizations today. A healthier workplace environment includes fair compensation, employee benefits, legal compliance, talent management and good employee-to-employee relationships.
- HRMS ensures that all employees are treated fairly irrespective of their gender, race or age. The minimum wage is clearly defined and also the pay rate for working overtime. Employee pension investment is protected transparently. HRMS also guides the process of forming labor unions and their rights.
- A regulatory framework for a safe and clean work environment is defined through HRMS that helps in preventing sexual harassment with women employees and hygienic working conditions for all respectively.
- Private sector organizations have an obligation to comply with Employee Retirement Income Security Act’s reporting and disclosure; the task that can become difficult to manage owing to frequent changes in the act. There are other laws relating to employer-sponsored health benefits that can easily be handled by HRMS.
- Apart from that, leave management can become a daunting task without HRMS. There are laws allowing the employees to take long unpaid leaves under special circumstances like family, medical and military reasons.
There are also other legal considerations for which an HRMS can come to your assistance.
Another key responsibility of HRMS is to assist the HR managers in policy development. A well-developed HR policy ensures that HR employees are aware of legal restrictions and consequences of alleged violation. A policy clearly defines both individual and group behaviors. HRMS assists in hiring and retaining HR employees who are aware about specific HR laws and capable of designing and modifying policies as per law.
Employee handbook is an essential communication tool that defines organization’s policies, procedures and good business practices. HRMS helps the HR professionals to create such handbooks from time to time to maintain a transparent legal environment.
HR education and training
HRMS is capable to educate and train the HR employees about employment laws and various regulatory and legal requirements affecting the organization. Such laws are updated frequently and the HR department should accommodate these changes within the system.
To the unawareness of HR department, many HR functions are understaffed and overworked. Failure to comply with the legitimate working conditions, the organizations can be fined. It can cast a shadow on the reputation of the organization. HRMS helps in scheduling HR compliance audits and make them an integral part of the organizational growth strategy.
It is evident that HRMS plays a crucial role in maintaining HR compliance of an organization. Protection of employee rights, policy design and employee education are key functional roles performed by HRMS from a legal point of view. Besides that, as a responsible HR department, one must engage all the employees through regular communication and training. Communication ensures awareness of HR laws and legal ramifications. It insures the otherwise vulnerable organization by alienating risk factors.