Vesna Dodiković-Jurković, PhD, ASHE
Developments in HR 
Management in QA 
Agencies

• Survey People and Culture in QA Agencies
• Results and findings of current HRM 
practices in CEENQA member agencies
• Conclusion
Content

• Collecting data by means of the survey People and Culture 
in QA Agencies conducted in March 2023
• by the CEENQA Secretariat and ASHE
• Link to online questionnaire was sent to all CEENQA 
member agencies → 19 agencies (anonymous)
• Adaptation of the HRM in HEI analytical framework 
developed in the Erasmus project Modernisation of Higher 
Education Institutions through Enhancement of Human 
Resources Management Function (HRMinHEI) project
Methodology

1. Human resources strategy 
and planning
2. Job demands
3. Recruitment and selection
4. Performance evaluation
5. Training and development
6. Career progression
7. Pay and benefits
8. HR analyses and reporting
9. HR special issues
10. Information systems and 
personnel administration 
HRM analytical framework

• General characteristics of QAA
79% public and 21% private (legal status)
Number of full-time staff: 2 → 158, median=27.6
HR professionals: 1 – 63%; 0 – 21%; 
General characteristics of QAA

Number of full-time and other staff in HR department 
0 1 1 9 1 1 1 1 0 1 1 1 11 1 1 1 6 0 0
1
3
2
27
3
10
0
8
0,75
3
5
2 2
5
0 0
8
1
3
0
5
10
15
20
25
30
Agency 1 Agency 2 Agency 3 Agency 4 Agency 5 Agency 6 Agency 7 Agency 8 Agency 9 Agency
10
Agency
11
Agency
12
Agency
13
Agency
14
Agency
15
Agency
16
Agency
17
Agency
18
Agency
19
Number of HR professionals employed full-time Number of other HR department staff - eg. legal affairs staff, administrators etc.

• Starting point → a strategic direction for HRM
• Purpose 
Clearly formulate HR policies
Goals
Strategies and action plans based on national 
policy and QA’s strategy
To mobilize employees for implementation
HR strategy and planning

• Specific HR strategies are part of the QAA's 
overall strategy 
– 68% fully or largely applies to our QAA
• We make plans for HR development
- 79% fully or largely applies (1 doesn’t apply)
• Defined measurable quantitative and qualitative 
indicators for HR action plans 
– 79% fully or largely applies (1 doesn’t apply)

Communication of HR strategy
9
3 3 3
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Fully applies to our QAA Largely applies to our QAA Moderately applies to our QAA Does not apply to our QAA
Number of Agencies
In our QAA, we can provide evidence that the HR strategy and its elements are communicated 
to all employees at least once a year.

From action plans to individual goals
7 7
1
2
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Fully applies to our QAA Largely applies to our QAA Moderately applies to our QAA Slightly applies to our QAA Does not apply to our QAA
In our QAA, all the employees are aware of how HR action plans translate into their individual 
goals

• Strategic directions are translated into specific 
requirements for each position
• Documented in job systematisation
• Two categories
• Competencies
• Expected results
• Basis for selecting new and developing existing 
employees
Job demands

15/19 (79%) QAAs have, to a certain extent, a 
documented procedure for writing job descriptions.
The agencies also more (68%) or less (21%) 
regularly review job descriptions and adapt them to 
changing jobs.
Job demands – findings

Job description - main responsibilities, roles and tasks
12
3 3
1
012345678910111213141516171819
Fully applies to our QAA Largely applies to our QAA Moderately applies to our QAA Slightly applies to our QAA
In our QAA, job descriptions provide a detailed list of main responsibilities, roles and tasks for: 
QA staff
11
3 3
Fully applies to our QAA Largely applies to our QAA Moderately applies to our QAA
Other agency employees

Work performance standards 
7
3 3 3 3
In our QAA, work performance standards (goals, outputs, key performance indicators, etc.) are 
clearly defined for: QA Staff
6
3 2
4
2
clearly defined for: Other agency employees

• Aim: Putting the right people in the right places
• Recruitment of potential candidates
• Selection methods & techniques
• Final choice is based on performance in the trial 
period
 11 agencies reported that they adjust their recruitment 
strategies and procedures in order to source the candidates 
who best support their organisation goals
 Majority of agencies (14) have fully or largely defined the 
selection process in terms of selection tests and procedures
 57% of QAAs have annual recruitment plans
Recruitment and selection

Selection procedures
11
4
3
1
In our QAA, HR professionals and those in managerial/leadership positions conduct selection 
procedures jointly
Yes, always In the most cases Rarely No

Selection methods and training
4 5
3 3 3
In our QAA, selection procedures include, in addition to interviews and written documents, 
other methods and techniques to support selection (psychological tests, simulation of work 
activities, etc...)
3 4
2
5
3 2
Fully applies to our QAA Largely applies to our QAA Moderately applies to our
QAA
Slightly applies to our QAA Does not apply to our QAA Cannot answer / do not
know
In our QAA, we train our recruitment committees for this task

• Monitoring
– Achievement of results
– Development of competencies
• Clearly defined criteria of work performance
• Methods for measuring have been developed
• All trained for regular use
• Supervisor provides feedback (previous period + 
planned activities)
• Integrator of other HR processes + central managerial 
tool
Performance evaluation

 11 agencies have reported that they have fully/largely 
established their own system for performance evaluation 
of employees
 10 agencies confirmed that is entirely true that their 
employees are informed about the criteria used for 
performance evaluation beforehand
 12 agencies conduct performance appraisals annually, 
while 3 agencies conduct them semi-annually and another 3 
more frequently (e.g. monthly or weekly).
Performance review

Performance measurement
10
9
In our QAA, performance is measured against criteria derived from
Actual activities (i.e. what staff really do in their everyday work) Job descriptions

Staff performance evaluation – KPI, competencies
4
2
4 4 5
In our QAA, we use key performance indicators (KPI's; results of work activities) in staff 
performance evaluation
5 4 4 4
2
In our QAA, we use the development of required competencies (knowledge, skills, values, 
attitudes, etc.) in staff performance evaluation.

Mechanisms for dealing with poor performance
4
2
6
5
2
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we have developed mechanisms for dealing with poor performance

Using results & managing change
6
2
4
2
4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we enhance the performance management system based on employee feedback

• Purpose: to improve individual work 
performance 
Training and development
Strategic 
requirements                                           
(desired state) 
Results and
performance      
evaluation
(actual state)
Agreement 
with employees
(personal 
development 
plan)

Training and development plan – QA & other staff 
17
12
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
QA staff Other agency employees
In our QAA, we have a clearly defined training and development plan for

Allocation of budget for training & development 
16
2 2
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Agency level Department level Employee/individual level
In our QAA, we have an allocated budget for training and development at the

Training types
15
10
14
9
-1
1
3
5
7
9
11
13
15
17
19
1
In our QAA, we provide training and development programs for upgrading staff competencies in
QA related topics Soft skills Job related topics (eg. IT, finance, project management, etc.) Management/leadership;

• Future needs of organisation + ambitions of individuals
• Career policy → basic principles of career progression
• Advance system: selection and development of 
prospective employees 
mentors 
successors 
internal trainers or 
consultants
Career progression

Career progression – employee aspirations
3
6 6
1
2
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, career progression is aligned with employee aspirations

Pre-defined promotion criteria 
4
2
4 4 4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we provide pre-defined promotion criteria for all employees

Performance evaluation results - career progression 
4
2
6
2
3
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, good performance evaluation results lead to career progression for all employees

Mentoring & career progression 
8
1 1
4 4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we provide mentoring to assist in career progression for early career QA officers

• Motivating for efficient work 
• Support personal development
• Material and non-material part
• Basic salary + incentive for extra effort, work 
performance or progress, encourage staff 
loyalty 
Pay and benefits

Regulation of pay and benefits
4
11
2
In our QAA, pay and benefits are regulated by
Institutional agreement National legislation Collective agreement

Autonomy in budget allocation
7
2 2
3
5
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we have autonomy in allocating the budget for new job positions in accordance 
with our strategic goals

Transparent pay and benefits system
10
2 2
3
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, the pay and benefits system is transparent

Who decides on changes in pay and benefits?  
1
3
6
1
7
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
QAA
know
In our QAA, managers can decide on changes in pay and benefits for employees in their units

Link between rewards and individual work results
5
4 4
2 2 2
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
QAA
know
In our QAA, rewards are clearly connected to individual work results and contribution

Employee feedback on pay and benefit system is regularly collected
4 4
3
2
4
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
QAA
know
In our QAA, we ask employees about their opinion and satisfaction with the implemented pay 
and benefits system

Prepare and distribute
information on HR
Monitor and improve process of 
managing people in organisation
Development of HR
HR analyses and reporting

HR analyses and reports are connected to institutional strategic 
goals and action plans
6
5
2
1
3
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, HR analyses and reports are connected to institutional strategic goals and action 
plans

HR reports as part of overall reporting system 
12
1 1
2
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, HR reports are an integral part of our reporting system

Employee feedback
12
8
5
7
8
3
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Quantitative analyses
(numbers) of personnel in
all positions
Job attitudes survey Employee well-being survey Organizational climate and
culture survey
Evaluation of different HR
plans (career progression,
training and development,
pay and benefits,
performance evaluation,
etc.)
Exit interview reports
In our QAA, we regularly conduct

HR analyses as tool for further enhancements
5
4 4
1
4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we use HR analyses and reporting for our HR development
4
6
3
1
3
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we use HR analyses and reporting to develop our institutional strategy

Retention policies
2
3
6
1
3
2
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
QAA
know
In our QAA, we have employee retention policies (for reducing staff turnover)

Depend on the context of the organisation:
– Social standards of employees
– Work and personal life balance
– Stress at work
– Discrimination
– Abuse of alcohol and drugs in the workplace…
HR special issues

Employee well-being 
8
4
2
1
2
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
QAA
know
In our QAA, we have implemented processes that enhance the health, safety and well-being of 
our employees above the legal minimum

Work-life balance
7 7
2
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Fully applies to our QAA Largely applies to our QAA Slightly applies to our QAA Does not apply to our QAA
In our QAA, we have HR practices that address the work-life balance (flexible working hours, 
double career support, etc.)

Flexible approaches
8
4
1 1
4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we have a flexible approach to working hours and place of work (work from home)

Diversity policy
6
5
2
4
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Fully applies to our QAA Largely applies to our QAA Slightly applies to our QAA Does not apply to our QAA Cannot answer / do not know
In our QAA, we have implemented a diversity policy

• IT system → basis for organisational 
functioning & personnel administration
• Level of authorisation (HR professionals, 
managers, employees)
Information system and personnel administration

HR data and analytics team
5
3
4
1
5
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, we have a team that is responsible for providing HR data and analytics

HR information system
5
4 4
1
4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, comprehensive IT software (HR information system/HR data warehouse) supports 
HR processes

IT software – staff portfolio
2 2
4
3
6
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
In our QAA, comprehensive IT software supports the development of a staff portfolio

Level of authorisation
6
4
2 2 2
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
QAA
know
In our QAA, all managers have access to reports on their staff

• Specific HR strategies are part of the QAA's overall strategy (68%)
• 50% agencies clearly communicate their HR strategy 
• Defined measurable quantitative and qualitative indicators (80%) 
• Documented procedure for writing job descriptions (79%)
• Largely established their own system for performance evaluation of 
employees (11); Only 4 out of 19 agencies fully use KPIs; Only 5 out of 
19 fully use competencies 
• 33% agencies have mechanisms in place to deal with the poor 
performance
• 17 agencies reported that they prepare development 
plans for QA staff only, whereas 12 agencies
responded that they prepare development 
and training plans for all employees.
Conclusion

• Clear link between performance evaluation and career progression was 
reported by only four agencies.
• 12 agencies reported that HR reports form integral part of their overall 
reporting system.
• 13 agencies reported that they have developed to a certain extent IT 
software for HR processes but only 4 QAAs has comprehensive IT 
software that supports the development of a staff portfolio.

WHITE PAPER
ESTABLISHING A 
QUALITY ASSURANCE 
PRACTICE IN FINANCIAL 
INSTITUTIONS
Jennifer Biewer
Senior Quality Assurance Manager
Valerie Stein

2 Establishing a Quality Assurance Practice
The following seven pitfalls can be avoided with a proactive approach and ongoing investment in Quality Assurance (QA) practices. 
THE PERILS OF IGNORING QUALITY
High-performing financial institutions understand the need for quality within ongoing 
initiatives that require significant investments in time and resources. The headlines 
are filled with software development disasters that point back to lack of control over 
quality, such as:
British Airways was struck by another IT 
glitch in August 2019 when system failures 
caused more that than 200 flights to be 
cancelled and others to be delayed.
In mid-January 2016, the Nest 
“smart” thermostat (owned by 
Google) was hit with a software glitch 
which left users, literally, in the cold.
Millions of the bank's customers 
were unable to access online 
accounts. Services only returned 
to normal after a two-day outage.
Pitfall 1: Lack of readiness.

Pitfall 1: Lack of readiness. 
This peril assumes organizations can delay adding QA resources 
and not bringing QA on board early in an initiative. Planning 
must account for contractual negotiations and the timing to 
bring third-party vendors on board.
Pitfall 2: Underestimating the effort. 
All QA management activities must be accounted for in any 
significant effort. These include:
 ● Test planning and approvals
 ● Test case writing
 ● Test execution
 ● Defect remediation
Pitfall 3: Lack of skilled QA resources. 
Using business resources who don’t know how to test can lead 
to testing the wrong outcomes in unproductive ways. QA staff 
should not introduce new testing technology without thoroughly 
evaluating it and gathering the quality and testing requirements 
in advance.
Pitfall 4: Over-engineering the effort. 
Over-testing can lead to unnecessary testing, creating high costs

Over-testing can lead to unnecessary testing, creating high costs 
and consuming time. The important criteria to test becomes the 
value delivered by the initiative.
Pitfall 5: Over-buying technology. 
Small banks have different QA needs vs. large, global institutions. 
What works for one organization may be too expensive for 
another’s operations. Avoid the thinking that automation can 
solve all QA challenges.
Pitfall 6: Do-it-yourself syndrome. 
QA teams should not exclude subject matter expertise that lines 
of business users bring to the table. Nor should QA leaders make 
decisions on behalf of these users, they must gain their 
consensus and buy in.
Pitfall 7: Inexperienced leadership. 
QA executives need to avoid thinking that all testing resources 
have the same skill set. Likewise, executives must understand 
what talents are needed in the frontline QA manager. For 
example, does the organization need process or testing 
expertise?

Establishing a Quality Assurance Practice  3
Building a QA practice
Most financial institutions understand the need for a formal QA practice within their organizations. All can relate to the 
pitfalls of ignoring QA as mentioned previously. How do bank executives begin to establish a QA practice within their 
institutions? They should follow these guidelines to start the process:
Assemble a trusted team that includes the appropriate resources such as project management, technical 
lead, business leads, and business analysts. Some of the roles can be fulfilled with existing resources as not all 
individuals need to be a QA-trained resource, but you should have QA-trained resources in the right roles. Other 
resources in your bank should help you:
 ● Consider candidates for the team (new hires, contract, contract-to-hire, or internal)
 ● Consider how much effort and budget is involved
 ● Make the best decisions with the most impact

● Consider how much effort and budget is involved
Hire a QA lead or manager either from within or outside the bank, getting the right person for the role. 
Consider contract-to-hire as an option and look for QA management experience in both process and testing, as well 
as banking experience.
Consider the background of the QA team your bank needs in terms of:
 ● Technology expertise
 ● Functional experience
 ● Automation experience
 ● Performance/system testing familiarity
 ● Communication capabilities
Consider existing staff (business analysts and technical), but don’t rely on them to be QA-trained resources.  
The QA mindset requires a different mental approach and skill set than other roles in a financial institution. A solid QA 
resource who understands the QA process can learn your business. Resources you take on must have a balance

between the functional and technical sides of the business, while your existing business analysts must give up some 
of their current responsibilities and ownership. Have patience, as the new team will need to get up to speed to reach 
a smooth working cadence.
Scope the size of effort the QA practice will address such as:
 ● Conversion only 
 ● Conversion and development
 ● Regular product releases
 ● Development only
 ● Integration efforts
Evaluate the tools your QA practice will need:
 ● Technology required
 ● Licensing
 ● Statement(s) of Work
 ● Data and intentional access to it 
 ● Production data and security
 ● Ability to refresh data

4 Establishing a Quality Assurance Practice
Consider training needs of the QA practice, which will include:
 ● QA training
 ● Process training
 ● Product training
 ● Training ownership, who does it and where will the materials come from?
Consider the QA process and methodology needed for your organization’s success as you:
 ● Introduce process gradually and consider the audience
 ● Overcome resistance with acceptance
 ● Overcome corporate culture hurdles
Consider the communications needed for your organization as you:
 ● Obtain buy-in for the QA practice at the executive level
 ● Communicate from the top down 
 ● Incorporate all QA team members in the communication process 
Establish an ongoing QA practice
Merger and acquisition activity
Given the current level of bank merger and acquisition activity, it becomes very likely your financial institution will be 
an acquirer or a target. In either case, these transformational efforts require an exceptional level of quality and your

staff will need to help deliver results. 
With organic deposit growth challenges failing to support lending activities, financial institutions must seek ways to 
expand. Bank mergers for the first quarter of 2019 have grown 21 percent over the same quarter last year, according 
to a recent Bloomberg article.
Acquisition execution within a financial institution creates excitement, yet it’s also a resource-challenging time. 
Finding both the technical and quality assurance expertise needed with a tight labor market creates a quandary for 
the senior management team of the newly combined entities.
Conversion efforts often encompass technology transformations requiring complex solution development and 
integration.  A robust Quality Assurance Practice is a must to drive the intended outcome of the technology 
conversions as two entities become one institution. 
Integration efforts

As application programming interfaces (APIs) and open banking continue to gain traction in financial institutions, 
best-of-breed solutions proliferate. The need for high-quality projects and development efforts is especially evident 
in the banking industry today.
The rapid growth of API technology accelerates the need for thoughtful, comprehensive approaches to ensure  
the strictest quality standards are met. This is especially true in the world of rapid-paced open banking  
development efforts. 
These rapid integrations often involving real-time links need strong QA management to drive end-to-end testing 
whenever a part of your bank’s technology ecosystem changes. A robust QA practice can provide the testing 
oversight and discipline to ensure newly combines solutions get the attention needed.

Establishing a Quality Assurance Practice  5
The following diagram indicates impacted areas of quality on testing within API integration efforts:
 
New software releases
Deploying new software and solutions must not become a high-risk endeavor within your financial institution. 
Customized products and solutions unique to your bank must be tested holistically prior to rolling the change to 
your production environment. In the case of  
FIS product releases and their changes, a strong QA practice needs to account for, and test, any third-party solutions 
integrated with this core solution. 
One thing is true of all software releases: they introduce the risk of downtime. In advance of these scheduled events, 
you and your stakeholders must ask what the impact of a given release is going to be on revenue or production 
stability and you should have an answer that is informed by real QA data.
Guidelines for creating a sustainable QA practice

“We were going into production and our number one priority was the timeline; 
we were ill-prepared to support any fall out of any significance.”
Does the preceding quote describe the state of the QA practice at your bank? If that’s the case, established partners can 
provide QA tools and a methodology that can support sustainable quality initiatives within a financial institution. 
A quality methodology should leverage one of the various quality industry standards (such as ISO 9001 – Quality 
Management System Requirements, or the Software Engineering Institute’s Capability Maturity Model Integration, 
CMMI). These are excellent ways to establish a best-practice quality management methodology in a bank.  
These standards require your institution establish quality controls throughout your business processes. The intent 
of these quality controls is to ensure your customer requirements are met before your products and services are

delivered to the customer. In one proven QA methodology, the quality controls at the management level are 
commonly grouped into four phases: Plan, Do, Check and Act (PDCA).
Functionality 
Testing
Security 
Testing
Data 
 Validation
Encryption 
Testing
BANKING 
APIs 
QUALITY 
ASSURANCE
End-to-End 
Testing
API Gateway 
Testing
Exploratory 
Testing
Documentation 
Testing
Usability 
Testing

6 Establishing a Quality Assurance Practice
Plan:
 ● The customer’s expectations and requirements are determined.
 ● The processes and quality controls needed for the organization to meet the customer’s expectations are 
identified and documented.
Do:
 ● The established processes and quality controls are performed – Prevent, Detect and Correct – to ensure the 
customer’s expectations are met:
 – Prevent – The processes and quality controls are implemented to prevent the occurrence of a defect.
 –  Detect – The processes and quality controls are implemented to proactively try to identify a defect.
 –  Correct – The processes and quality controls are implemented to fix and resolve each identified defect.
 ● The product or service is delivered to the customer.
Check:
 ● Feedback from the customer is received.
 ● The effectiveness of the processes and quality controls are evaluated, answering the question, “Are the customer’s 
expectations being met?”
Act:

Act:
 ● Actions are taken to improve the effectiveness and efficiencies of the documented processes and quality controls 
to meet the customer’s expectations.
Applying these controls can help establish a sound QA practice which creates a foundation for QA success 
throughout a financial institution. 
Summary
A sound QA practice provides the foundation for a high-performing financial institution. 
As bankers look to increase merger activity, develop more integrated solutions, and manage more complex software 
releases, a robust QA practice becomes vital to avoid the severe pitfalls that can occur when quality is not given the 
important focus it deserves.

About FIS
FIS is a global leader in technology, solutions and services for merchants, banks and capital markets that helps businesses and communities thrive 
by advancing commerce and the financial world. For over 50 years, FIS has continued to drive growth for clients around the world by creating 
tomorrow’s technology, solutions and services to modernize today’s businesses and customer experiences. By connecting merchants, banks and 
capital markets, we use our scale, apply our deep expertise and data-driven insights, innovate with purpose to solve for our clients’ future, and 
deliver experiences that are more simple, seamless and secure to advance the way the world pays, banks and invests. Headquartered in 
Jacksonville, Florida, FIS employs about 55,000 people worldwide dedicated to helping our clients solve for the future. FIS is a Fortune 500® 
company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com
©2020 FIS

©2020 FIS
FIS and the FIS logo are trademarks or registered trademarks of FIS or its subsidiaries in the U.S. and/or other countries.  Other parties’ marks are the property of their respective owners. 888134
www.fisglobal.com
getinfo@fisglobal.com
twitter.com/fisglobal
linkedin.com/company/fis

85 
9. Legal Aspects & Compliances  
Kanika Gupta 
 
Legal Aspects refers to an Enterprise to run its business in accurate pathway as per applicable 
rules/ regulations/  Acts/ laws on it. To better understand the legal responsibilities of 
organisation, this Session has been framed. The main objective is to make attentive Enterprise 
to carry on its business activities in lawful manner and to ensure timely compliances to av oid 
any delay fees/ penalty provisions.   
However, when an Enterprise is being formed, there are various parameters like- 
✓ Environment Protection 
✓ Customer Satisfaction 
✓ Manpower Rights 
✓ Casualty Precautions 
✓ Taxation Deadlines 
✓ Retirement Benefits 
✓ Female Security 
✓ Corporate Social Responsibility 
✓ Cyber Protection 
These are needed to focus on priority basis in order to smooth functioning of business activities.

These are needed to focus on priority basis in order to smooth functioning of business activities. 
To strictly follow  all abovementioned purposes, Govt. makes Acts and updates required 
amendments therein on time to time basis. Perfect Legal Framework Makes Business Perfect.  
To quickly understand Indian Legal Framework for an Enterprise Set Up, this Session has been 
designed with four parts:- 
 
I. Main Applicable Laws/ Acts on Micro Enterprises in India 
II. Legal Framework of Business Enterprise (from Inception to Running Phase) 
III. Latest Compliance Calendar for an Enterprise (monthly/ quarterly/ half-
yearly / yearly basis)  
IV. Practical Session- Case Studies on legal Consequences  
Introduction:-

86 
Compliance calendar has been given in last page of this Write- up, which is as per current Laws 
and Acts governing in India. Any amendments in checklist can be seen from their respective 
department websites.  
Let’s understand in detail about Enterprise’s Legal & Compliance Structure- 
 
While India is often criticized for its intricate Legal Mechanism, even in some cases, these laws 
& regulations are easier than many developed country laws. Main characteristic is that almost 
all these regulations are consistent across the country.  
In general, there are more than 1000 Acts applicable on any business set -up in India, here we 
will be discussing on most important Legal Regulations applicable on any ordinary 
organisation. Even it depe nds upon proposed Enterprise structure, that whether it is going to 
start business activity in India – as Trading concern/ Manufacturing Concern/ Service

start business activity in India – as Trading concern/ Manufacturing Concern/ Service 
Providing Concern. Most crucial way to start business is setting up of manufacturing concern, 
as major regulations are there; the Enterprise needs to take care of.  
Following C heck-points can provide a thorough Idea to start Business Venture of 
Manufacturing Concern under Legal Framework- 
✓ Get Industrial Land- use approvals  
✓ Factory License from local Authority 
✓ NOC from Deputy Commissioner of Industries 
✓ NOC from Pollution Control Board 
✓ NOC from Fire Department 
✓ Electricity Connection from State Electricity Board 
✓ Water Connection from State Water Board 
✓ After Factory setup- register for EPF/ ESI 
Main Applicable  Acts on abovementioned (trading/ manufacturing/ service providing) 
segments are as follows:- 
 
III. Main Applicable Laws/ Acts on Micro Enterprises in India

87 
For Any Business Concern- 
  GOVERNING ACT 
 
For Enterprise Registration 
Sole – 
Proprietorship 
Shop & Establishment Act, 1958 
Partnership Indian Partnership Act, 1932 
Company Indian Companies Act, 2013 
LLP Limited Liability Partnership Act, 2008  
For Name/ Logo/Word 
mark Registration 
 Trademarks Act, 1999 
For Income Tax 
Registration 
 Income Tax Act, 1961 
For GST Registration  Goods & Services Tax Act, 2017 
For Factory License  Factories Act, 1948 
For Employees future 
protection 
 Employees Provident Fund & 
Miscellaneous Provisions Act, 1952 
For Casualty Cases  Employees State Insurance Act, 1948 
For Employees Wages 
Security 
 Minimum Wages Act, 1948 
For Bonus provisions  Payment of Bonus Act, 1965 
For Online Transactions  Information technology Act, 2000 
For Financial Transactions  Banking Regulation Act, 1949 
For any business contract  Indian Contract Act, 1872 
For E commerce activities  Consumer protection (E Commerce) 
Rules, 2020

Rules, 2020 
 
To do business in legal way, it is very much required to understand composite framework of 
every Legal prospective applicable on a particular Enterprise from starting business to running 
it in WIN- WIN situation.  
The steps which are required to take are s ummed up in a brief way to start and run a Micro 
Business Enterprise in legal way:- 
INCEPTION PHASE 
- Register your Business Organisation with Unique name and valid registered address  
- Register in IT, GST, MSME, Open Bank A/c 
- Get License as per Industry Law 
- In case, export-oriented business– get IEC Code from DGFT/ License from DGFT 
- Get approval from Water & Electricity Board 
- Register in PF (If 20 or more persons are employed in Enterprise) 
III.

88 
- Register in ESI (If 10 or more persons are employed in Enterprise & salary not more 
than 21000 p.m. 
RUNNING PHASE 
- Pay Employees Salary/Wages/ Bonus/ Perquisites as per related Compliance Acts 
- Pay monthly/ quarterly / yearly tax amounts/ file returns on time 
- Export goods/ services as per Indian Customs 
- Check Business Turnover/ no. of employees/ capital/ expansion of Enterprise on 
quarterly basis (as some Acts becomes applicable on reaching a specific limit) 
 
A collaborative strategy of drafting Road- Map of all compliances plays a vital role here. Let’s 
understand this Road- Map of an Enterprise to make it LEGALLY WISE- 
 
In order to become prompt for every business activity compliance, following Compliance 
Calendar has been drafted to follow by an Enterprise- 
SPECIFIC HEAD PERIOD DUE DATE 
INCOME TAX -   
TDS/TCS Payment Monthly basis 7th of Following Month (30 TH 
April for TDS/TCS Payment till 
30th march of F.Y.) 
1. GET ALL 
REGISTRATIONS/

1. GET ALL 
REGISTRATIONS/ 
LICENSES TO 
START 
ENTERPRISE
2. MAKE 
CHECKLIST 
APPLICABLE 
LAWS ON YOUR 
BUSINESS/ 
INDUSTRY
3.   PREPARE 
REGISTERS/ 
FORMS/ 
COMPLIANCE 
DOCUMENTS 
4. DRAFT 
CHART FOR 
EACH BUSINESS 
ACTIVITY
5. REVIEW  & 
AMEND ON 
REGULAR BASIS 
TO ENSURE 
UPDATES 
IV.

89 
TDS Return Filing Quarterly basis 31st of Following Quarter (31 st 
May for Last Quarter of F.Y.) 
TCS Return Filing Quarterly basis 15th of Following Quarter (15 TH  
Income Tax Return Yearly basis 31st July of A.Y. - Individual/ 
HUF 
 30TH September of A.Y. – For 
other persons 
Advance Tax Payment Quarterly basis 15 days before end of Quarte r 
(Installment – wise)  
GST-   
GSTR-1 Monthly basis 10th of Following month 
GSTR-3/3B Monthly basis 20st of Following month 
GSTR-9 Yearly basis 31st December of following year 
GSTR-7-TDS DECUCTOR Monthly basis 10TH of Following month 
   
EPF-   
PF Payment Monthly basis 15th of Following month 
PF Return Monthly basis 25th of Following month 
PF Return Annual Yearly basis 25th April of Following year 
   
ESIC-   
ESIC Payment Monthly basis 21st of Following month 
ESIC Return Half-yearly basis -12th November (April - 
September) 
  - 12th May (October – 
March) 
ROC -

March) 
ROC -   
Filing of Annual Accounts Yearly basis 31st October of Following year 
Filing of Annual Return Yearly basis 30th November of Following year 
Director KYC Verification Yearly basis 30th April of Following year 
LLP-   
 
It can be please considered that due dates for current financial year has been totally extended 
due to COVID Condition as we can say this year as abnormal one. Above list has been prepared 
for a Standard year basis. 
There are also other parameters of due dates related to different laws, which need to be checked 
through their respective regulations, for example Trademark registration need to be renewed at 
every 5th year. Application can be filed on or before 6 months of expiry of registration. 
       
It will be discussed during the Session in order to interact with participants.

It will be discussed during the Session in order to interact with participants.  
VI. Practical Session- Case Studies on legal Consequences 
VII.