What is a Labour Law Audit?
A labour law audit is a detailed examination of your company’s statutory records, processes, and practices to ensure compliance with central and state-specific labour regulations. These audits are often part of internal control systems or preemptive measures to avoid penalties and legal actions.
During an audit, the focus areas typically include:
- Registers & Documentation
- Mandatory registers, forms, returns and records maintained and updated.
- Provident Fund (PF) & ESI records
- Wages, attendance & contractor documentation
- License validity & renewals
- Bonus, gratuity & leave records
- Employment agreements & applicable Acts
Audits can be conducted internally or initiated by an external agency to assess the legal standing of your organization’s HR and labour practices.
