What would happen if the only person who knew how the payroll worked in your company just walked out? The loss of one key individual in a company means the knowledge that person possesses disappears with them which could lead to some important HR functions not being completed.
Many companies are aware of the risks they may face in their day to day business operation and put in place many processes to control that risk to reduce it. However, sometimes little thought is given to the risks associated with the HR function and the HR risks can come in many forms:
- Government regulations in different locations put responsibilities on companies to provide certain minimum standards of employment. If these are not adhered to fines and other charges can be levied.
- Regulations in some countries make the employer responsible for the payment of statutory social insurance benefits, as well as withholding some income tax payments and reporting on these payments at the end of a year.
- Regulations need to be followed should a company need to terminate an employment contract. This can be a major burden on company resources or in the worst case scenario companies/individuals can face large penalties, fines or even imprisonment.
Without a thorough understanding of these legislations, companies can find themselves in breach of them even though they have been looking after their employees well. Black Mountain Risk Management services can assist companies by making sure the company is aware of all its responsibilities by:
- Providing outsourcing administration services that are aimed at the management of HR risks
- Making sure processes follow the law in each location
- Drafting and reviewing employee handbooks and documentation to identify potential problems
- Making sure the payroll function withholds all the relevant social insurance and taxes
- Making sure information does not stay in the hands of one individual
|
