Sometimes it is easy to overlook the importance of human resources and compliance. The HR department is normally one of the last functions to develop fully in a growing Company. This lack of development and focus can create problems and issues for the Company that would not be there in the first place if you had someone focused solely on HR and compliance.
When Companies first start up, the Founder tends to look after all things “people”. They are probably using the HR documents and policies from their last (often much larger) Company, swapping out the Company name and imported their new Company logo. Or possibly completed a quick Google search and found something that looks right and will do.
When the Company grows, and their time is precious, the Founder probably handed over the HR responsibility to their Assistant or to Finance as an additional part time task with the remit to “just keep the Employees happy”.
Random HR processes and documents start to creep in, forming a “mismatch” of HR practices, most of which are not aligned to the Company culture or are compliant to UAE Labour law. They often are the cause for internal Employee issues as they just “don’t fit”, are not practical to the Company culture or compliant to Labour Law.
Mistakes with Employees contracts or how their employment lifecycle is handled can cost a Company a lot of time and money. Employees are becoming more educated as to local employment legalities and there are many “no win no fee” legal practices that are only too keen to help Employees get more from their ex-employers.
Compliance with Labour Law and implementing HR best practice reduces the chances of an Employee making a complaint, and should they try, by keeping compliant and keeping documents on Employee files gives the Company the confidence to challenge legal complaints.
Here are 5 reasons why compliant HR practices and processes are required in any Company that has Employees.