Compliance and the HR Functions
Human Resource function is an important aspect for nearly all organizations regardless of whether they are small or medium-sized organizations with 20-100 and 100-500 employees. The significance of this function is shown by statistics associated with effective management and constant organizational growth. Companies usually make costly mistakes that are preventable due to lack of HR professional guidance from internal HR professionals and outside HR consultant. Some of these costly mistakes arise from relatively common employment-related issues, which have significant impact on organizational efficiency, productivity, sales and revenues, effectiveness, and decreased profitability. The other factors that contribute to costly mistakes in human resource are compliance issues related to some legal requirements. Some regulations with HRM compliance issues include Employment at Will, Fair Credit Reporting Act, Genetic Information Nondiscrimination Act, Immigration Reform and Control Act, and Uniformed Services Employment and Reemployment Rights Act.
Compliance Issues with Various Laws:
One of the major regulations that govern human resource management is the doctrine of employment at will which allows an employer to fire an employee at any time with or without cause, reason or notice when an employment contract does not exist between the parties. This doctrine was established on the premise that if workers could resign or quit with or without notice, reason/cause, and liability, employers should be allowed to discharge employees on the same grounds (Perkins, 2011). Therefore, an employment relationship can be concluded at impulsively or at the will of any party with or without notice, reason or cause, and liability of the other party.
While the regulation does not affect any of the major functions of human resource management, it has a significant effect on employee retention. Generally, employers are required to develop and implement employee retention strategies that make employees feel valued and engaged in relations to their contribution in the organization. In order to develop and establish effective strategies, employers need to listen to the needs of employees and comply with necessary regulations. However, the doctrine of Employment at Will is has some compliance issues associated with its alignment with other laws. These issues emerge from the fact that there are some regulations that limit or restrict the application of employment at will.
An example of a real-life situation involving the doctrine of employment at will was the wrongful termination case of Paul Blakeslee from Shaw Environment and Infrastructure in 2008. Blakeslee was terminated without notice after reporting fraud involving the provision of equipment to the firm without competitive bidding (Schaefer, 2012). While the employer had the right to terminate Blakeslee, such action could not be taken in discriminatory and retaliatory illegal manner due to the need to comply with other employment laws.
Genetic Information Nondiscrimination Act supplements the Equal Employment Opportunity Act by forbidding genetic information discrimination in employment. In this case, Genetic Information should not be used in making employment decisions, limits employers from asking, requiring and buying genetic information, and strictly restricts the disclosure of this information ("Genetic Information Discrimination," n.d.). The enactment of this legislation is based on the premise that genetic information is not relevant to a person's current ability to work and should not influence any employment decision.
This law has significant on nearly every major human resource management function because it prohibits the use of genetic information in any aspect of employment such as hiring, firing, promotions, training, and development, layoffs, compensation and benefits, and other employment terms and conditions. An employer should not harass a job applicant or employee or retaliate on the basis of the individual's genetic information.
Compliance issues associated with Genetic Information Nondiscrimination Act emerge from the narrow exceptions of the law. Some of these exceptions include inadvertent acquisitions of the information, acquisition of family medical history, obtaining the information through commercially available documents, some DNA testing, and acquisition through genetic monitoring program. An example of difficulties in compliance with...
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