Importance of Legal Framework for Hrm
The nature of the measures required by employers depends on the legal framework interpreted by case law. Legislation and case law are important in determining the needs of the employer or organization. HRM guidelines are formally written documents that are easily accessible to management, employees and key stakeholders, and these official documents must be approved by the appropriate authority prior to final documentation. (HR Management Standards, 2009) Another important legal issue in human resources is the prevention of harassment. Companies must develop anti-harassment policies aimed at creating and maintaining a work environment where people are treated with dignity, decency and respect. These policies must be easily accessible to all new and existing employees. In addition, training should also be provided to all managers to ensure that they are able to identify potential instances of harassment and behaviour, fair, impartial and thorough investigations in the event of an employee complaint. As mentioned earlier, there are various legal aspects that an HR professional needs to know to ensure compliance with HR labor laws. Here are some of the key HR laws HR faces: In addition to the above, the U.S.
Department of Labor (DOL) has also implemented a program to help companies ensure they comply with all legal issues for HR professionals. Drug and alcohol policy: There are many countries where marijuana has become legal and drug use has increased. This policy should describe the prohibition of drugs, marijuana and alcohol in the workplace. Regional laws should be taken into account when developing these guidelines. («15 Key Human Resources Guidelines», 2020) The main objectives of human resource management policies are to create a workplace where minimum legal requirements are met, where the most appropriate practices are implemented and properly documented, where policies assist management in making decisions and where responses are consistent, and, finally, where legal policies ensure that employees and the organization are protected from the pressures of opportunity. (HR Management Standards, 2009) A PEO can help you navigate the complex issues and challenges facing HR in legal services. Partnering with a PEO also helps your business get more affordable benefits for your employees. Most importantly, a PEO protects you from legal HR management issues while you focus on tasks related to your core business. Time tracking is one of the core functions of HR.
Therefore, it is important to ensure that HR managers comply with all relevant legal requirements for recording employee time. Due to the legal risks associated with workplace safety, workplace insurers schedule regular audits. Your HR staff can spend countless hours preparing for these audits. Insurers must have access to tax forms, books and pay slips, and other documents. Auditors will look for compliance issues related to the many federal and state laws that govern workplace safety. Another legal risk, the type of employee classification, can make your company vulnerable to severe penalties or even a criminal conviction. Like many regulations for businesses, the rules for classifying independent contractors change significantly as presidential administrations change. Without proper guidance, companies risk neglecting these changes and paying hefty fines for non-compliance. In the event of non-compliance, an employee has the right to sue for a variety of reasons. HR departments must therefore be aware of all laws and regulations. They also need to understand how they should deal with potential legal issues.
Compliance with human resources laws protects both the employee and the employer, and businesses are required to operate within the framework that governs the work environment. Organizations must implement policies and procedures that align state and federal laws with business strategy and goals. Failure to keep abreast of new personnel laws can result in fines, penalties and, in some cases, prosecution. The legal responsibilities in the field of human resources that companies face are increasing year by year. On average, small businesses spend at least $12,000 per year to manage government regulations and at least 10 hours per month to decrypt and monitor compliance. Human resource management laws and regulations are a large part of the legal problems that companies face. The National Small Business Association conducted a survey to analyze the impact of regulation on businesses. They identified several areas of regulation that are confusing and burdensome for businesses.
Four of these categories of regulations are directly related to human resources management and compliance. In 2019, there were 2.8 million workplace injuries, according to the Bureau of Labor Statistics. As onerous as OSHA compliance may seem, companies that reduced injury rates by just over 9% saved an average of $350,000. Employee safety is one of the most important legal and ethical issues in human resource management. The regulatory burden and legal issues surrounding pension and pension plans have existed for years. But the coronavirus pandemic has compounded the headache of managing employee pension funds. Most importantly, PEOs can competently handle complex legal issues when it comes to human resource management. Business owners spend a lot of time deciphering the laws or regulations that apply in all the work situations their employees face. When working with a PEO, landlords no longer have to worry about government regulations that affect human resource management. Instead, they can focus on their core business. The Ministry of Labour enforces about 180 laws to protect workers, ranging from wage requirements to notice periods and parental leave benefits.
Other protections are overseen by agencies such as the U.S. Equal Employment Opportunity Commission. This legal protection provides workers with a minimum income and protects them against unfair practices in the workplace. The 20,000 pages on which the ACA and its regulations are written weigh about 200 books. And the CBA is getting heavier every year and is one of the current human resources legal issues in the news. In its first few months, the Biden administration has already made several significant changes to the ACA and promised new reforms to strengthen health care legislation. Payroll errors aren`t the only reason why employee compensation is a major legal issue for businesses. The correct classification of employees is critical to compliance. If you misclassify employees, you risk penalties for unpaid taxes or non-compliance with the ACA if your «part-time» employees are eligible for benefits. HR trends are constantly changing, and so is the workplace.
It is imperative that workplace policies reflect the changes that are taking place. HR needs to respond to the latest trends by updating employee policies/handbooks that help set clear policies and boundaries, avoid misunderstandings in the workplace, and ultimately protect the business from legal complications. («15 Essential HR Policies», 2020). Policies form the basis of HRM practices and are employee management guidelines that allow an organization to regulate the behavior of all employees (HR Policies, 2021) Overall, there is a lot of interesting information here that would be helpful to your audience – well done.