Staying compliant in evolving regulatory landscape of labour laws increasingly complex: Core Integra

India, set to become the world's fifth-largest economy in 2024 with a GDP of $4,122 billion, is a major hub for startups, “especially in fintech, e-commerce, renewable energy, health tech, and transportation,” says Munab Ali Beik, Head, Compliance Advisory Practices, Core Integra in an exclusive interaction with Bizz Buzz. He further explains how Ctr-lF, their flagship SaaS platform simplifies compliance management, and enhances reporting, to provide greater governance and control. He also throws light how Mumbai-based Core Integra, which provides tech-based solutions for labour law compliance, serves over 750 clients across 25 industries in more than 1500 locations across India, becoming a market leader in labour law compliance

How do regulatory compliance standards differ between startups and established corporations across various sectors such as pharmaceuticals, manufacturing, and BSFI?

India, set to become the world's fifth-largest economy in 2024 with a GDP of $4,122 billion, is a major hub for startups, especially in fintech, e-commerce, renewable energy, health tech, and transportation. Recognizing the unique challenges faced by startups, the Indian government has introduced several regulatory relaxations. Startups enjoy exemptions from inspections for three years and can submit self-certifications for the first five years under various acts, such as the Industrial Disputes Act and the Trade Union Act. Some States also provide exemptions from certain working hours and employment conditions regulations to encourage investment and employment. Inspectors for Provident Fund (PF) and Employees' State Insurance (ESI) are restricted from inspecting startups for three years, provided there are no defaults in contribution payments or grievances.

In contrast, established corporations, particularly in pharmaceuticals, manufacturing, and BSFI (Banking, Financial Services, and Insurance), face a more stringent regulatory landscape. Pharmaceutical firms must adhere to rigorous standards set by bodies like the Central Drugs Standard Control Organization (CDSCO), with mandatory regular audits and inspections. Manufacturing companies must comply with extensive environmental regulations, safety standards, and labour laws. Established BSFI firms must navigate comprehensive regulatory frameworks designed to ensure financial stability and consumer protection, with ongoing compliance requirements and regular scrutiny from regulatory authorities. Overall, startups benefit from relaxed regulations to foster growth, while established firms must ensure strict compliance with complex regulations.

What are the consequences of non-compliance with industry regulations, and how can organisations mitigate these risks?

The Indian regulatory environment is complex, with multiple acts and compliances varying by State because it’s under the concurrent list of the Indian Constitution. Both State and central governments regulate employment conditions, wages, and health and safety, enforcing numerous acts, rules, and regulations. Non-compliance can lead to fines or imprisonment, with penalties ranging from fines of Rs. 10,000 to one lakh or more.

Organisations must navigate this complexity with updated knowledge, automation, and expert support. A robust checklist or tool is essential to identify applicable compliances, validate compliance status, and implement risk mitigation plans. Keeping up with regulatory updates is challenging, as multiple authorities can notify changes. Managing these updates and implementing necessary corrections requires expertise, often leading companies to consider outsourcing compliance responsibilities

Could you elaborate about the recently launched open-access knowledge platform on the Ctrl-F page, designed to streamline regulatory compliance and enhance the ease of conducting business within regulated sectors?

The knowledge platform Ctrl-F stands as the largest and most comprehensive labour law compliance software in India. Accessible through ctrlf.coreintegra.com, the Ctrl-F knowledge platform provides free access to compliance calendars, the latest notifications, circulars, court judgments, minimum wages, holiday lists, working hours, and overtime rules. The resource page offers critical compliance information that is accessible without registration. We provide real-time updates on minimum wage changes, amendments to acts and rules, advisories, instructions, and gazette notifications. This allows HR and compliance professionals to understand changes, applicability, and impact. We also offer a filterable table to identify applicable minimum wages and provide downloadable notifications.

Furthermore, we list mandatory and optional national and festival holidays, helping establishments comply with regional requirements. Our data includes permissible working hours and overtime regulations for shops and commercial establishments across various States and UTs, with plans to expand to more industries. Monthly newsletters feature the latest updates, changes in minimum wages, significant judgements, compliance due dates, and detailed notes, ensuring organizations stay informed.

Additionally, our comprehensive compliance calendar, tracks due dates and applicable compliances for all industries and regions, aiding in timely adherence. This open platform consolidates extensive compliance knowledge, providing the industry with essential tools to navigate the complex regulatory landscape effectively.

What strategies can organisations implement to stay up to date with changing regulations and ensure ongoing compliance?

Staying compliant in India's evolving regulatory landscape is increasingly complex, particularly with over 19 labour authorities overseeing each business unit. Organizations face challenges such as multiple physical inspections, State-level requirements for periodic returns and renewals, and a shortage of skilled compliance personnel. Appointing a single compliance officer is often insufficient due to the multi-faceted skills needed to understand, analyze, and implement regulatory changes effectively.

A key strategy is the adoption of a robust compliance monitoring tool that can identify applicable regulations and trigger advance actions to ensure compliance. Such tools help prevent missed deadlines and shortfalls in remittances, which can lead to interest payments and damages.

Partnering with a competent compliance consultant is another effective strategy. Consultants provide comprehensive support, including the use of compliance monitoring tools, regular updates on regulatory changes, risk identification, and third-party engagement validation. They also advise on mitigation plans, help maintain necessary registers, ensure the display of required abstracts and notices, and manage on-time remittances and return filings. This partnership allows organizations to focus on their core operations without the constant fear of non-compliance and potential penalties.

Could you provide a brief summary of Core Integra's journey and growth within the Indian market for SaaS-based compliance platforms?

Core Integra, founded in 2009, is committed to simplifying labour law compliance by providing high-quality advice and digitising compliance processes. Our mission is to educate the industry, ensure 100 per cent compliance, and facilitate digital submissions for better transparency and governance, making compliance accessible to everyone, regardless of expertise. In 2014, we introduced Ctr-lF, our flagship SaaS platform to simplify compliance management, enhance reporting, and provide greater governance and control. It includes a vast library of acts, laws, notifications, and circulars, along with a repository for essential documents like licenses, registrations, notices, and audit reports. The platform features an auto-alert mechanism to prevent missed deadlines and generates necessary registers, returns, filings, and submissions in various formats and languages, ensuring seamless and secure data transfer with client software. The platform has quickly gained over 100 clients due to its comprehensive features.

Core Integra now serves more than 750 clients across 25 industries in over 1500 locations across India, becoming a market leader in labour law compliance. We offer advisory, outsourcing, EHS Compliances, Audit Services, Risk Governance and technology solutions, with Ctrl-F being a key component.

Since launching the SaaS model, Ctrl-F has received positive feedback from the industry. Our goal is to maximize Ctrl-F's penetration in India, helping organizations understand and adhere to 100 per cent compliance requirements. With the government focusing on simplifying compliances, we anticipate robust growth in the coming years, continuing our journey of innovation and leadership in the compliance environment.