Compliance refers to the process of managing, operating, executing different steps in a business industry. It ensures all the aspects of the business are legally sound and helps to protect the financial crisis, smooth operations and management.

Compliance plays a vital role in HR as it makes sure that hiring practices, workplace rules, treatment of employees, and a variety of other factors all comply with the relevant laws. HR compliance involves ensuring that all HR practices and policies align with relevant labour laws, employment regulations, and industry standards.

Businesses in India face a significant compliance burden, dealing with 1,536 Acts and 69,233 compliances. Labor laws contribute significantly, accounting for 47% of these compliances.