Growing Beyond 30 Employees: What HR Compliance Steps Should We Take?

Hi all, I work in a small-sized company based in the healthcare industry. Previously, we had below 30 employees, but now our company is growing. Please guide me on the HR compliances that the company should follow when the number of employees increases to more than 30.

There are no special compliances for companies with thirty employees other than those applicable to establishments with 20 employees. When the number of employees reaches 50, certain other compliances such as Standing Orders and provisions relating to layoff, retrenchment, etc., of the ID Act will become applicable to the company. Therefore, if you are covered by the ESI Act, EPF & MP Act, Bonus Act, Maternity Benefits Act, Payment of Gratuity Act, etc., and have set up a Grievance Committee as per the ID Act and an Internal Committee for Prevention of Sexual Harassment against Women at the workplace, then you are legally compliant.

Sure, here are some of the HR compliances that your company should follow when the employee count increases to more than 30:

Employment contracts
All employees must have signed valid employment contracts that outline their terms of employment, including job responsibilities, compensation, benefits, and termination provisions.

Statutory compliance
Comply with various statutory requirements, such as obtaining and maintaining necessary licenses and registrations, adhering to labor laws, and following applicable industrial and employment laws.

Minimum wages and payment of wages
Ensure that employees are paid at least the minimum wages mandated by the state government and that their wages are paid within the specified timeframes.

Provident Fund (PF)
Register your company for the Employees' Provident Fund (EPF) and ensure that all eligible employees are enrolled and their contributions are deposited on time.

Employee State Insurance (ESI)
Register your company for the Employees' State Insurance (ESI) and ensure that all eligible employees are enrolled and their contributions are deposited on time.

Maternity benefits
Provide maternity benefits to female employees as per the Maternity Benefit Act, 1961.

Paternity benefits
Provide paternity benefits to male employees as per the Paternity Benefit Act, 2017.

Workplace safety and health
Comply with all applicable workplace safety and health regulations, such as the Factories Act, 1948, and the Occupational Safety and Health Act, 1987.

Data privacy and security
Protect the personal data and privacy of your employees as per the Personal Data Protection Bill, 2019.

Non-discrimination
Do not discriminate against employees on the basis of race, religion, caste, sex, disability, or any other protected characteristic.

These are just some of the HR compliances that your company should follow. It is important to consult with an HR expert to get specific advice on the compliances that apply to your company.

In addition to the above, here are some other things to keep in mind when your company grows to more than 30 employees:

- You will need to set up a formal HR department or hire an HR consultant to help you manage your HR compliances.
- You will need to develop and implement employee policies and procedures.
- You will need to track employee performance and conduct regular performance reviews.
- You will need to manage employee benefits and compensation.
- You will need to handle employee relations issues, such as disputes, grievances, and terminations.

Growing your company is a great achievement, but it also comes with new challenges. By taking steps to ensure HR compliance, you can protect your company and your employees.

Mr. Pocket HRM, everything you have explained above is applicable to an establishment employing 20 employees as well. The question was all about the coverage of Acts for those establishments that have 30 employees and the compliance requirements when the number of employees exceeds 30. Employment contracts, developing policies and procedures, managing compensation, performance evaluation, etc., are available to all establishments regardless of the number of employees.