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Legal briefing notes

Providing Human resources audit

Human resources audit is a concentrated inspection of documents of the entity and its accordance with labor legislation and personnel documents. Any labor disputes can be avoided or solved with the minimal wastes of forces, time and money but only if there is an accurate structure of human resources documents. Many firms neglect this part of work but incorrectly concluded treaty or formed with mistakes employment record book are the threats for the employer of not only legal disputes but a fine from the Labor

Inspectorate's authority. Especially such fines are quite common when an employee complains. Nevertheless, even when an employer can make some sort of arrangement on peaceful solution of the dispute with an employee that complained to the State Labor Inspection, it is impossible to avoid the inspection in your company. The fine will be imposed for every offence that inspection can find and the fine will be bigger two times if the offence has already been detected previously. So labor law violations can lead to millions rubles fines.

Unplanned inspection of the Labor Inspectorate's authority is usually provided suddenly when an employer is not ready. But timely detected and corrected mistakes in labor documentation can save the employer.

Human resources audit includes such stages:

  • Formulation of the plan of providing the audit with the client. And we identify what documents will be included in the object of an audit procedure.
  • Collection of documents of a company. The client provides the documents for audit and indicates what documents the entity doesn't have.
  • The analysis of documents including the initial test for accordance with labor legislation.
  • Preparation of the conclusion on detected disadvantages in human resource documentation and suggestions on the elimination of them. According to the results of the human resource audit, the conclusion on detected disadvantages will be given with links to the legislative norms of labor legislation. Also, we advise our clients on how the documents can be realigned to requirements.

During human resource audit we look at:

  • Accuracy of the maintenance and filling the Employee records (records of employment) because the incorrect recording process may also be grounds for legal disputes by the employee.
  • Correct formation of leave according to labor legislation (the issuance of orders, processing of leave benefits to staff).
  • The leave schedule. There should be one in any company. Such a schedule should be formed at the end of a year for the next year. And schedule should be approved no later than 17 December.
  • Personal records of staff (the orders of hiring or dismissal or redeployment, personal record cards, etc.)
  • Personal record card that has personal information of employee and information on his/her redeployment or leaves. An employee has to sign this card, which means he approves all data.
  • Journals of HR department including the register of movements and issuing of records of employment, journal of the employment contracts, etc.
  • Staffing table and the internal workplace regulations that define not only a list of posts and functions but the number of employees and their salary.

Correct formulation of internal workplace regulations allows monitor the discipline of employees and in case of any misbehaviour or incapacity to discharge their duties it allows to prosecute them.

What does the human resource audit give?

  • Objective and impartial analysis of the condition of labor documentation of a company and evaluation of the staff competences;
  • Reducing of risks of any violations of labor legislation and as the consequence the eliminations of reasons to complain to the State Labor Inspection and court for employees;
  • error and deficiency correction in the labor documentation before the moment of inspection by the Labor Inspectorate's authority.

The human resource audit allows seeing for the employer the system of management of a whole company.

To book the human resource audit

Our experts are ready to provide the human resource audit of your company and to detect any violations of labor legislation and also to accompany your business during the inspection by the Labor Inspectorate's authority and in case of undue administrative prosecution to appeal against fines in the court.

We recommend for the quick search of weakness in labor documents of the company to provide the human resource audit at the earliest possible date and independent specialists should be involved in this activity.

Author is Irina Volodina

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