HR compliance risk is a topic of concern and challenge to HR. HR compliance is a basic requirement for any organization’s HR, because HR, like all other departments, has to be compliant with its own set of areas in which it has to be in compliance.
Many of HR's activities are such that they are actionable, meaning they are activities that attract scrutiny. It is for this reason that HR has to be sure it is in compliance within set rules. It is for this very reason that HR faces compliance risks.
HR compliance risk is very high for actions which have long term and serious implications for the organization. When an organization takes major actions, HR has to make sure that it is on perfectly strong legal ground. This is why there are major HR compliance risks, because in each and every of its activities, HR has to ensure complete compliance with set rules.
The areas in which HR compliance risk is high constitute some of the core activities of HR. Some of these are:
In addition, HR compliance risk is a challenge also because HR has to ensure compliance with many aspects of the law from other employees, too. Even as HR takes all steps to be legally safe from an HR compliance risk perspective, it should shut the door on the possibility of managers from concerned areas creating compliance risks for HR.