The Human resource Audit is a procedure to examine Current HR policies, Current HR process, documentation, systems and practices with respect to an organization HR functions. The aim of audit is to know strengths and weakness in the organizations HR system. Also suggest if any issues needs resolution.
The Audit helps in analysing and improving the HR function in the organization.Audits are essential from time to time to confirm that over a period no issue has cropped up in your business which is statutorily non-compliant or might create obstacle for the organization.
Benefits of HR Audits
A properly executed Audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems.
Examine the contribution of HR department to organization.
Better explanation of HR duties and responsibilities
A detailed review of HR information systems.
Reduction of HR costs
Ensuring timely compliance with legal requirements.
Improves HR department’s professional image.
HR Audits checks that the organization is aware of the laws and rules. We also check whether it is implementing them effectively. There are 21 labor related laws in addition to numerous regional laws. We do Audits on the basis of this law.
An Act for regulating the employment of Private Security Guards employed in factories and establishment in the State of Maharashtra and for making better provisions for their terms and conditions of employment and welfare.
The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 provides for compulsory notification of vacancies and submission of employment returns by the employers to the employment exchanges.
The EC Act is an act of India is established to ensure the delivery of certain commodities or products, the supply of which if obstructed owing to hoarding or blackmarketing would affect the normal life of the people.
The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments, employing 20 or more persons, on the basis of profits or on the basis of production or productivity and matters connected there with.
The Act provides for payment of gratuity at the rate of 15 days wage s for each completed year of service subject to a maximum of Rs. ten lakh. In the case of seasonal establishment, gratuity is payable at the rate of seven days wages for each season.
The Auditors always prepare and submit an audit report to authority of the organization. HR Audit is very much helpful to face the challenges and to increase the potentiality of the HR personnel. The issues will be find and resolved through Audit.