What is Labor Compliance and Labor Compliance Auditing?

It is clear that one of the main attributes of a company is its ability to adapt to a changing environment; this is almost a survival imperative. In this sense, among other matters, organizations need to adapt their work to new regulatory and cultural changes imposed on them within the society in which they operate.

Recently, the term "labor compliance", or regulatory compliance in labor law matters, has been coined. It is associated with the ability of companies to comply with and enforce contractual requirements that derive from the payment of agreed-upon remuneration and benefits to their employees, respect for labor relations and the environment in which they develop, safeguarding the fundamental rights of workers, the company's relationship with its trade unions, the duty to protect the life and safety of workers, the maintenance of adequate hygiene, health, and safety conditions in the workplace, and compliance with social security and tax obligations.

In our experience as consultants, we see how companies have increasingly been paying greater attention to proper compliance with these regulatory requirements, as they wish to avoid the possibility of legal contingencies such as the obligation to pay compensation for a work-related accident or occupational illness; or fines for violations enforced by the Labor Inspectorate, the Regional Ministerial Secretariat of Health, or other state authorities, and to avoid the reputational risks generated by possible cases of sexual or workplace harassment.

Our recommendation for companies seeking to establish a culture of compliance with labor law begins with the proposal to conduct a Labor Compliance Audit, whose mission is to establish a baseline that reflects the company's level of adherence to and respect for legal provisions. To this end, we propose conducting a thorough and rigorous examination of matters such as:
• Individual and collective employment contracts,
• The situation of independent workers (freelancers), foreign workers, subcontracted workers, and temporary workers,
• Termination of employment contracts,
• Payment of remuneration and other benefits,
• Working hours and attendance records,
• Holidays, leave, and benefits related to maternity protection.
• Internal rules on order, hygiene, health, and safety,
• Study of the validity and applicability of the internal regulations on order, hygiene, and safety, and
• Occupational training.

If you would like to learn more about this topic or find out how a labor audit could benefit your company's management, please contact us directly at:
. Our website
. In person, at Los Militares 5953, office 1208, Las Condes, Santiago, Chile.
. Or by phone (+56 2) 3224 6860 and email: contacto@wiseplan.cl

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