Is your business’ human resources doing what it needs to do?
Has your turnover has been increasing and not sure why?
If you have been concerned about these issues or other related issues and/or compliance you may need an HR audit. Frontline Consulting Pvt. Ltd sister company of Froxjob conducts HR audits to determine whether the current human resource policies in the organization adhere to the company policies and government laws. HR audits help in providing insights into possible causes for current and future problems.
Introduction to HR Audit
HR Audit basically refers to the reviewing the HR policies and practices of a firm to find whether the policies are in accordance with the law or not. According to the Labor Act 2017, section 56 all the firms require to conduct Labor Audit by the end of Nepali Month of Poush (Mid-January) every year. The Labor Audit comprises of certain criteria’s regarding contract of employees, working hours, compensation and benefits of the employees, holidays and leaves and such other criteria’s that shows the status of employee welfare and HR policies of a firm.
Components of HR Audit
The Ministry of Labor has provided a standard form which is to be filled by companies themselves or companies can also take help of other agencies. The standard form basically consist of the following questions:
- Number, type and other details of labor workforce.
- According to section 11 the employees been provided with contract and offer letter? If no specify the reason.
- Are the employees above the age of minority? If no what sort of work does the minor employees perform?
- According to section 28 do the employees work eight hours a day and forty eight hours a week. And if they work for more than these hours. Do the company provide overtime?
- Is the firm registered in social security fund?
- If money is deposited in social security fund, state the amount?
- Does the company have any provision for bonus? If yes how is the bonus distributed?
- Does the company have labor union? If yes has the elections for the trade union been held or not?
- And such other questions related to safety of work environment and employee welfare.
- At the end of the form the recommendations and suggestions felt by the company to be improved can also be mentioned.
Importance of HR Audit
The companies following all the rules and regulations need not to worry however the firms violating the rules mentioned in the labor act can be charged with fine and penalty. So it is necessary to understand the importance of HR Audit to make the HR practices lawful and enhance employee welfare in the firm.
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Contact us and set up an HR audit today!