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Exertion HR Consultation & HR Compliance Audit Services.
Our team conducts statutory audits as required by the law, ensuring that businesses adhere to federal regulations.
- We provide assistance with paperwork and documentation related to company formation and registration.
- Our HR Compliance Audit helps businesses establish company rules and guidelines, ensuring that workers understand and comply with them.
- It serves as a "Look in the Mirror" moment, allowing businesses to assess the impact of their operational procedures on their reputation.
- Our audits help identify gaps or weaknesses in company procedures and provide solutions to address the main issues.
- We offer assistance in EPF Act and ESI Act assessment proceedings.
- Our team is experienced in responding to notices from EPFO, ESIC, and other labour departments.
- We provide support during inspections and compliance audits conducted by EPFO, ESIC, and other labour authorities.
We also offer assistance in obtaining case-specific approvals and exemptions.
FAQ'S
What is an HR compliance audit, and why is it important?
- Ensuring Legal Compliance: By conducting an HR compliance audit, companies ensure that they are meeting all legal requirements pertaining to employment laws, labour regulations, anti-discrimination laws, health and safety regulations, and other relevant statutes. This helps companies avoid legal consequences, penalties, and potential litigation, thereby fostering a culture of legal compliance.
- Financial Integrity: Compliance with HR regulations is essential for maintaining financial integrity. Non-compliance can lead to financial liabilities, fines, or compensation claims, which can adversely impact the company's financial stability. By conducting an HR compliance audit, companies can identify and rectify any non-compliance issues, safeguarding their financial interests.
- Protection of Employer and Employee Interests: An HR compliance audit benefits both employers and employees. It helps employers ensure that they are providing a safe and fair working environment, protecting the rights and interests of their employees. Similarly, employees are assured that the company is following the necessary legal provisions, leading to better job security, fair compensation, and a positive work atmosphere.
- Reputation Management: Compliance with HR regulations enhances a company's reputation in the market. Companies that prioritize and demonstrate a commitment to legal compliance are more likely to be trusted by customers, investors, and other stakeholders. This can contribute to long-term success, profitability, and sustainability in the market.
What areas does an HR compliance audit typically cover?
- Employee Provident Fund (EPF): An HR compliance audit verifies whether the company is complying with the provisions of the Employee Provident Fund and Miscellaneous Provisions Act, 1952. This includes assessing the accuracy of EPF contributions, timely deposit of funds, record-keeping, and adherence to related guidelines.
- Employee State Insurance Corporation (ESIC): The audit examines compliance with the Employee State Insurance Act, 1948, which involves reviewing the proper implementation of insurance coverage for employees, the calculation and payment of contributions, maintenance of relevant records, and adherence to reporting requirements.
- Labor Welfare Fund (LWF): An HR compliance audit ensures compliance with applicable state-specific Labor Welfare Fund Acts. This entails verifying whether the required contributions are made to the fund, maintaining precise records, and strictly following the guidelines established by the respective state.
- Professional Tax (PT): The audit assesses adherence to state-specific Professional Tax laws, including registration, timely payment and filing of returns, accurate deduction and remittance of taxes, and proper record-keeping.
- Payment of Wages Act: The compliance audit ensures compliance with the Payment of Wages Act, 1936, which includes evaluating the timely payment of wages, appropriate wage deductions, maintenance of wage registers, and compliance with related provisions.
- Payment of Wages Act: The compliance audit ensures compliance with the Payment of Wages Act, 1936, which includes evaluating the timely payment of wages, appropriate wage deductions, maintenance of wage registers, and compliance with related provisions.
- Minimum Wages Act: The audit verifies compliance with the Minimum Wages Act, 1948, to ensure that wages paid to employees are in accordance with the prescribed minimum wage rates and that proper records are maintained.
- Industrial Dispute Acts: In addition, an HR compliance audit may cover relevant industrial dispute acts to assess compliance with provisions related to trade unions, employment termination, dispute resolution processes, and adherence to proper procedures for employee grievances.
- covers many more applicable acts
How often should an organization conduct HR compliance audits?
- Annual Audits: Companies operating as corporates or multinational corporations (MNCs) are typically mandated to conduct HR compliance audits annually. This requirement ensures that organizations thoroughly assess their compliance with labour laws, regulations, and other legal obligations on a regular basis.
- Need-Based Audits: For other companies, the frequency of HR compliance audits may depend on specific circumstances or triggers. For instance, significant changes in the company's operations, such as mergers or acquisitions, may necessitate an audit to ensure compliance with new legal requirements. Additionally, legislative changes or updates in labour laws may prompt organizations to conduct a compliance audit to adapt to the revised legal framework.
- Compliance Checkpoints: Companies may also choose to conduct HR compliance audits at specific intervals, such as every two years or every three years, as a proactive measure to ensure ongoing compliance and identify any potential risks or non-compliance issues. These periodic audits help companies maintain a continuous focus on legal adherence and prevent any deviations that could lead to legal consequences.
- Industry-Specific Requirements: Certain industries, such as healthcare, banking, or manufacturing, may have specific regulations that necessitate more frequent or specialized HR compliance audits. Companies operating in these sectors should stay updated on industry-specific legal requirements and determine the appropriate frequency of audits accordingly.
What are the potential consequences of failing an HR compliance audit?
- Yes, contact https://exertionhrsol.com/ to assist with all the HR compliance issues and audits. For further information: please contact +91 8599946333 (Gayatri Chavan)