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In a business, compliance means cohering to the rules, regulations, government laws, and standards. Simply, following a set of rules related to safety, health, standards, or data security is known as compliance. There are certain regulatory compliance requirements recognized by government bodies to run a compliant and responsible business. It is a company’s responsibility to stay compliant in order to maintain a reputation and to stay away from legal liabilities. Since it is essential for the existence of a business, compliance becomes a necessary action to run a company legally. 

In HR, Compliance is a legal commitment to run a business as per employment and working standards defined by the government. It is the process of forming policies and regulations to ensure that employment practice follows the necessary applicable laws. A company must follow employment laws, local and state regulations to stay compliant.


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