LegalTech solution to comply with the labor reform
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The continuous regulatory changes in the workplaceand the, every time, increased complexity for compliancethey require constant specialized advice and to have implemented efficient and dynamic processes and management systems that ensure, on the one hand, the compliance with regulatory obligationsand on the other, the prevention and management of possible breaches regulations in this matter.
Among the international standards compliance most relevant highlights the recent ISO 37301 standard on Compliance Management Systems (april 2021). The objective of this new international standard is to provide companies with an internal control methodology for the design and continuous evaluation of the conformity of the management systems of compliance (normative compliance).
management systems compliance based on the ISO 37301 standard, are certifiable to third parties, and applicable for compliance with any regulatory block, including the socio-labourboth those of mandatory compliance or hard-lawsuch as internal rules of voluntary compliance at the company level or soft law.
The implementation of these compliance systems through legaltech toolsthrough automated information processing, they help companies identify non-compliance risks more effectively.
allow the companies to identify, prevent and manage the main regulatory risks in which the entity may incur and, specifically in the workplace, due to the specific obligations of compliance labor requirements with respect to this specific regulatory blockthereby implementing an effective system for the evaluation and monitoring of said risks of compliance in an effective way to minimize or reduce its impact and/or probability in the organization (Labor Compliance).
The implementation of compliance systems using LegalTech tools help companies identify risks of regulatory non-compliance
Between the main practical benefits of management systems compliance employment, the following stand out:
- allow a greater understanding of one’s own organization, its context and of the applicable labor regulations (obligations of compliance), both internal and external, as well as the interests and relationships of the Stakeholders (groups of influence or interest in the company), such as managers or legal representatives of workers, in relation to regulatory compliance.
- Identification, and assessment, of the concrete risks of compliance labor for non-compliance with the applicable regulations, both in terms of impact like probability in the organization, through control systems and check listas well as from internal complaint channels (Whistleblowing).
- Prevention And in his case, managementof the risks of labor breachthrough the monitoringas well as of the corrective measures in the event of lack of conformity or regulatory breachesreducing or minimizing the risk of suffering sanctions or damages for such breaches.
- Reaction capacity in an early way before organizational or legislative changes that could modify the risk map (labor risk assessment) initially prepared by the organization.
before the various regulatory changes that are taking place in the labor sphereit is necessary to have an effective management system Labor Compliance that allows a RiskAnalysis all new regulatory obligations, as well as of the non-compliance risks associated with said obligations, in order to update the regulatory catalog and design the necessary controls to avoid or minimize the risk of non-compliance.
The actual labor reform, operated by RDL 32/2021, of December 28, on urgent measures for labor reformhas introduced important regulatory changes Y new obligations of compliance laborwhich require their identification, and inclusion in the corresponding compliance systems in order to identify and assess the risks of compliance employment associated with them.
Between the legislative developments The most important highlights, especially, the new enforceable obligations in terms of temporary hiring, for the suppression of the modality of the contract for work and service and the presumption of indefinite contracting; the reform of the Collective negotiation; the contracting and subcontracting; the new regulation of the ERTES; or the new mode of fixed-discontinuous contract; with a increase not only of the infractionsbut also, and especially, by the widespread tightening of sanctions for non-compliance in these matters.
In this case, the LABOR RISK ANALYSIS must necessarily start from:
- A prior identification of Risk areas subject to analysis, that in the Labor Reform there would be five major areas of risk: Promotion of permanent contracts; temporary hiring reform; collective bargaining reform; hiring and subcontracting; ERTES).
- a Identification of the different regulatory obligations for each block subject to the labor reform (eg: obligation to justify the new cause of temporary employment in the contract; or the obligation to inform the RLT and the discontinuous permanent staff of vacancies in regular permanent positions);
- the necessary controls compliance of each normative obligation identified (eg: supervision of the observance of temporality in the new contract modalities due to production circumstances; or of the observance of the discontinuous fixed contract modality due to the concurrence of the new cause of these contracts);
- A regulatory risk assessment (impact and probability), in the event of eventual non-compliances (eg: serious infraction of between 1,000 and 10,000 euros for each worker affected by the transgression of the regulations on labor contracting ex new art. 7.2 and 40 LISOS) , obtaining a risk matrix that the company can easily identify;
- as well as a battery corrective measures necessary and adequate to avoid or reduce such non-compliance or its impact on the company (e.g.: implementation of processes of check o Verification of the temporal causality points prior to contracting; or automated alerts of fixed vacancies for your information to the fixed-discontinuous workforce and, where appropriate, to the RLT).
ECIJA, through the LABOR RISK ANALYSIS Labor Reform and its own methodology based on its experience and on international standards in terms of compliance, makes available to companies a tool to carry out external audit work, for the purpose of regulatory adaptation with respect to all the obligations established by the new labor reform for the prevention of regulatory breaches and the reduction or minimization of sanctions in this area.
In short, with the implementation of these management systems, through the use of LegalTech solutions, it is ensured that the business activity is carried out in accordance with the principles of good corporate management, avoiding or reducing not only the negative impact that could result from the imposition of administrative sanctions due to irregularities or breaches of labor regulations, by action or omission, but also possible reputational risks arising from such breaches.
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