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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
A review of HR records, policies and practice against law and the organisation's own rules: employee files, statutory registers, registrations, contracts, policy acknowledgements and processes such as POSH. Its purpose is to find gaps before an inspection or a dispute does.
A practical HR audit is usually run once a year or before a funding round, acquisition or inspection. The reviewer samples employee files and checks them against a list: offer and appointment letters, Form 11, PF and ESI registrations, nomination, policy acknowledgements, and exit paperwork for leavers.
The statutory part compares registers and returns with payroll: whether PF and ESI challans match the wages paid, whether Professional Tax was deducted under the right state's slabs, and whether the TDS returns agree with Form 16. State-level registers and display requirements vary, so the checklist must be built per location.
The common mistake is treating the audit as a report and stopping there. The value is in the action list: who fixes each gap and by when. Repeat the same sample checks a quarter later to confirm the fixes held, or the next audit finds the same issues.
Statutory compliance such as registers, returns and registrations, employee files and documents, policies and how they are applied, and HR processes such as hiring and exit.
A payroll audit checks pay and deductions; an HR audit is wider, covering employment documents, policies, registers and practices as well as payroll compliance.
Commonly once a year, and before events such as fundraising, an acquisition or a major inspection.
Missing appointment letters, unsigned policies, outdated registers, registrations not done in a new state, and exits without a documented settlement.
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