The garment industry is one of the oldest and largest export industries in the world. There is a huge compliance fatigue in the Indian apparel export industry. Although catering to the global brands, apparel suppliers are yet to accept that compliance is an essential management practice. The check for compliance at the factories can give immense benefit to the owner of the factories. When the garment factory compliance is taken into consideration, the workforce can give the owner huge profit margin if they are given a healthy and safe environment.

Compliance Audit in Garment Industry

Compliance audits are used to evaluate and measure how well a company is adhering to mandatory regulations. In recent years, business complexities and developments have increased the significance of effective compliance and internal audit functions with in the entity.

Compliance audit in India includes an examination of the rules, regulations, orders and instructions for their legality, adequacy, transparency and prudence. Auditors gather information through visual observations at the site, document reviews and interviews of staff. This data is then compared to the applicable permits and regulations to evaluate how well the operation is conforming to those applicable legal requirements.

Audits and assessments provide an important management control for safety, security and risk management programs. They help to ensure if programs are properly designed and implemented. Audits identify deficiencies so that recommendations can be developed for corrective action.

Need of Compliance Audit

//**Compliance in a garment industry**// refers to a code of conduct in which the involved parties keeps on looking for improved ways to protect the safety, health and fundamental rights of their employees. Compliance audit is necessary to ensure if the company meets standards of various environmental laws.
Nowadays, the continuous adherence to quality standards and employee satisfaction has become an important criterion for measuring the company's performance. This is why compliance auditing has become such an important task in companies today.
The compliance structure team with regular auditing can bring the desired change in the code of conduct, ethics and other issues based on compliance. They provide training on the code of business conduct, different competition laws, prevention of drug abuse, violence in the work place and several other important matters.

Basic Areas of Compliance

 Proper working conditions and standard wages & hour laws
 Restriction on child labour, forced labour and discrimination
 No illegal transshipment, for e.g. Country of manufacturing has to be the same as agreed upon with the buyer at the time of order placement.
 Environmental protection and other safety laws

In short, compliance audit in India assesses actual or potential violations of law, occurring within an organisation, and, where vulnerabilities are identified, recommends solutions to remedy or minimize them.