The Meaning of Compliance

What does ‘compliance’ mean?

The essential elements of legal compliance for employers to meet their obligations under employment law are:

1. Being informed sufficiently to know their responsibilities, rights and obligations;
2. Allocating responsibility to nominated personnel within their business so that the relevant responsibilities etc are addressed and ‘driven’;
3. Preparing and maintaining the appropriate documents (contracts, awards, agreements, policies and correspondence) that illustrate the genuine attempts of management to meet these responsibilities etc –a fundamental requirement of due diligence;
4. Actually implementing the requirements of the law as reflected in the documents you have created/adapted as the ‘compliance portfolio’ of the business.

Why comply with the law?

Employment law regulates the relationship between employer and employees.  There are four principal reasons for employment law compliance:

1. The law is enforced by a regime of sanctions that can result in monetary penalties and, in extreme cases, imprisonment.
2. Civil action is available to employees and others who are victims of non-compliance.
3. Businesses that meet the legal obligations exemplify good corporate governance and reap a consequential market advantage from having a positive corporate image.
4. Failure to comply with employment law can result in physical and material injury and damage to employees (and sometimes, third parties).