In 2016, a global transport, logistics, and energy company was operating from multiple cities in
India and was looking for a partner to build HR and payroll systems. In bringing on HGS’s support, the prime objective was to ensure compliance with the requirements of the Shops & Establishments Act of India, along with obtaining permission to operate 24/7. This permission is obtained from the deputy commissioner of labour for working in shifts. This permission is compulsory if women employees
are deployed during time periods other than the stipulated timing under the Shops and Establishment Act.
The procedure for obtaining permission to operate 24x7 involves the client submitting an application with a declaration on an Indian government stamp paper, ensuring safety and security of women employees,justification for working in shifts, and consent letters from women employees. The client wanted HGS facilitate the entire process to gain permission. Working in shifts without exemption is a significant lapse in compliance, with the potential for major consequences. In case of an inspection, it could lead to prosecution or a penalty.
1) Analysing and Improved Client Compliance Processes
How We Do It
HGS studied the client’s compliance records across their branches to gain understanding of the status of compliance policies. Before we started providing services, the client was not aware of the consequences of non- compliance. To solve for this, distinct HGS teams carried out a detailed gap analysis on all compliance aspects. Copies of certificates, returns, and other documents were assessed during the review, and gaps were identified in compliance fulfillment. Then we provided the client with a comprehensive plan of action prioritizing high-risk compliances. After identifying the gaps,high-risk areas were identified. The absence of permission to operate 24x7 was a major flaw. The client was informed of the consequences of this, and documents required for the application were prepared immediately.
The study, analysis, and understanding of client compliance records helped HGS to provide the client with an effective plan to ensure highrisk compliances get their attention. All these initiatives led us obtaining permission to operate 24x7 across cities.
2) Meeting Timelines and Obtaining Necessary Approvals for Compliance
How We Do It
We ensured required adherence to compliance timelines. Compliance
had to be ensured under India legal acts, as well. The application for 24x7operations differs from state to state in India. We made certain that all registrations and returns were obtained/ filed including obtaining approval for 24x7 operations across cities. For this client, we filed applications for 24x7operational permission in two cities: Mumbai and Pune in Maharashtra.
We achieved 100% compliance for this client within two months of the beginning of this partnership demonstrating HGS’ expertise and effective solutions in compliance.
3) Tracking Compliance Status
How We Do It
We created a central database of pan India locations and their respective compliances status. The establishing of the database was very helpful
for both HGS and the client to track compliance status. The tracker had real-time, pre-determined, color-coded status updates with red for non- compliance, green for compliance achieved, and yellow for in process.
Because of real-time compliance status tracking, HGS completed all pending activities resulting in compliance for all client branches.