In today’s dynamic and regulated business environment, HR compliance is no longer optional – it is critical. Human Resource (HR) Managers play a vital role in ensuring that their organizations adhere to all applicable labor laws, company policies, and regulatory requirements. Staying compliant not only reduces the risk of penalties but also builds a strong, ethical, and transparent workplace culture.
1. Payroll Processing & Salary Disbursement
- Ensure accurate calculation of employee salaries, including deductions, bonuses, and reimbursements.
- Verify salary structures are in line with statutory requirements.
- Ensure timely disbursement of salaries, ideally by the 1st or last working day of the month.
- Generate and distribute salary slips to all employees.
2. Provident Fund (PF) Compliance
- Deposit PF contributions (both employer and employee) before the 15th of every month.
- File monthly Electronic Challan cum Return (ECR) via the EPFO portal.
- Update UAN details for new employees.
- Resolve PF withdrawal or transfer requests if applicable.
3. Employees’ State Insurance (ESI) Compliance
- Deposit ESI contributions before the 15th of each month.
- File ESI returns if applicable.
- Update new employee details in the ESIC portal.
4. Professional Tax (PT) & Labour Welfare Fund (LWF)
- Deduct PT and LWF where applicable as per state-specific rules.
- Make timely payments to the concerned authorities.
- Maintain proper documentation of deductions and deposits.
5. Attendance & Leave Management
- Verify and update employee attendance data.
- Ensure leave balances and approvals are updated in the system.
- Address absenteeism or irregular attendance issues.
- Share monthly attendance summary with management.
6. Statutory Registers & Records Maintenance
- Update statutory registers as per the Shops and Establishments Act, Factory Act, or respective labor laws.
- Maintain employee master records, muster rolls, and wage registers.
- Regularly back up digital and physical compliance data.
7. Contract Labour Management
- Verify documentation and compliance status of third-party contractors.
- Ensure contract workers receive statutory benefits (minimum wages, PF, ESI).
- Maintain contract labor attendance and wage records.
8. New Joinee & Exit Formalities
- Complete documentation and onboarding checklist for new hires.
- Enroll new employees for PF, ESI, and other benefits.
- Conduct exit interviews and settle full & final payments on time.
- Issue experience letters, relieving letters, and Form 16 if applicable.
9. Gratuity & Bonus Payments
- Track employee eligibility for gratuity (5+ years of continuous service).
- Calculate and initiate gratuity payments if an employee exits.
- Pay annual bonus (if applicable) as per the Payment of Bonus Act.
10. HR Policy Updates & Communication
- Review and update HR policies if there are any regulatory or internal changes.
- Communicate policy changes to employees through email or notice boards.
- Conduct awareness sessions or HR talks on compliance-related topics.
11. Health, Safety, and Welfare Compliance
- Conduct monthly safety audits or health check-ups (especially in factories).
- Ensure compliance with fire safety, hygiene, and canteen regulations.
- Maintain records of safety drills, accidents, and incident reports.
12. Training and Development Records
- Update employee training records and certifications.
- Ensure mandatory training sessions (POSH, Fire Safety, etc.) are conducted.
- Collect feedback and evaluate training effectiveness.
13. Internal Grievance Handling & POSH Compliance
- Ensure the Internal Complaints Committee (ICC) is active and documented.
- Conduct monthly grievance review meetings.
- Follow the prescribed procedure for POSH complaints and resolutions.
14. HRMIS & Data Management
- Update employee database in HRMIS or ERP tools.
- Backup monthly reports and employee records.
- Ensure data security and privacy protocols are followed.
15. Reports & Compliance Filings to Management
- Prepare and submit monthly HR and compliance reports to senior management.
- Highlight any risks, issues, or legal changes.
- Recommend improvements or process updates based on trends.
Final Thoughts:
Compliance is not just about ticking boxes; it’s about building trust and accountability within the organization. An HR Manager who actively monitors and maintains monthly compliance demonstrates responsibility, transparency, and strategic foresight. By following this checklist, HR professionals can stay ahead of legal requirements, reduce risks, and contribute significantly to a compliant and efficient workplace.
Wowidea Consultingminds Private Limited helps companies stay compliant by offering expert HR advisory, payroll management, PF/ESIC handling, and HR audits. Let us partner with you to simplify your monthly HR compliance and keep your business worry-free.
