Compliance is a word every business leader faces with a bit of apprehension. In its simplest form, compliance has to do with conforming to rules and regulations. In the realm of business this means following tax policies, government codes and other accepted business rules.
For many SME owners, business compliance is something that causes confusion. So, what areas should leaders focus on when it comes to rules and regulations? Let’s take a look at some of the most common compliance categories.
Wages and hours
Understanding the intricacies of employee wages and the laws surrounding work hours is critical for any business. Every government has a distinct set of regulations around both areas, for example in New Zealand the current minimum wage rate for employees 16 and over stands at $15.25 an hour.
In terms of hours, any time worked over 40 hours must be either paid out as overtime or agreed upon between the employee and employer beforehand. SME owners should familiarise themselves with these details. Neglecting to secure a genuine understanding of these areas could result in some serious financial problems.
Employee rights and discrimination
Employee rights encompass a whole bunch of areas – from safety laws to discrimination. A failure to abide by these regulations can be cause for problem. Business leaders should put a focus on implementing clear workplace conduct and safety protocol to ensure they are compliant to the necessary standards.
Benefit regulations
Benefit requirements will depend largely on the type of employment and the employer in question. However, as with wage and hour laws, there are some stringent requirements that most full-time employees are entitled to. From KiwiSaver, maternity and parental leave, statutory holidays all the way down to paid time off, business owners need to be familiar with the requirements to ensure they don’t break compliance laws.
Remuneration policies
Remuneration is an issue that involves intricate legal and regulatory issues. While remuneration can be a great motivation for employers it also needs to be closely examined by business leaders to include all the relevant legal considerations.
Strategic Pay can help your business ensure your remuneration policies are aligned with compliance standards. With over two decades of experience in remuneration, we pride ourselves on helping our clients secure the best policies possible. Want to learn more? Contact one of our reps today!
