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HR Legal Audit

Indian legislation on employment relations is extraordinarily complex and is fundamentally changed on a more or less regular basis. Any failure to manage HR risks appropriately may very well result in damaging both our organization's financial position and its reputation. Somebody who specialise in legal issues as the interface between (strategic) HRM and employment law in the widest sense of the word, should always assist us in developing and managing HR Compliance Programs and help us keep these programmes up-to-date. This is the only way to control HR risks right from the start! The two must haves today are:

  • Drafting Compliance programmes
  • (External) Compliance Officer

 

The HR Legal Audit involves the following:

1. Analysis of internal documentation

The first phase of the assessment is to analyse all HR documentation. We will assess whether all of the necessary documentation required by law is in place, whether your documentation complies with current legislation and regulations and any Collective Bargaining Agreement, and whether your documentation may be cause for potential liability. Throughout the assessment, we will analyse the following:

 

  • Job application form / job application
  • procedure
  • Standardised employment contracts
     
  • Personnel manual and rules
  • Evaluation forms & inventory and evalution of risk
     
  • Job descriptions
  • Rules for whistleblowers
  • Service Level Agreement Arbo services
  • Sick pay insurance and other insurances
  • Contents personnel files
  • Code of conduct

 

2. Practical analysis

In the second phase, our lawyers will interview those employees (co-)responsible for human resource matters. This could include: the human resources manager or the operations manager of the management board. We will conduct a structured interview to assess the various HR processes against compliance with (internal) regulations, internal (administrative) procedures and understanding of case law. During this phase of the HR Compliance Assessment, we will check in particular whether all management levels (including managers and other staff members) are 'compliant'.

We will assess the following:

  • Recruitment and selection
  • Job assessment
  • Salary system (fixed and flexible)

 

  • Investigation recent claims filed by employees
  • Employment conditions policy
  • Internal complaints procedure
  • Assessment and interview
  • Employee file management
  • Career policy & Mobility
  • Skills management
  • Execution Arbo policy, prevention of bullying, etc.
  • Case management absence due to sickness
  • Dismissals
  • Personnel administration

3. Legislation and regulations under review

During the assessment we will review legislation and regulations in relation to employment law in its broader context, including the impact of any recent amendments & relevant judgments applicable, specific to your industry or geographical areas

These will cover:

The Contract Labour Act

Provident Fund Act and Scheme

Employee Compensation Act (Workman Compensation Act)

Employee State Insurance Scheme

Payment of Wages,  Minimum Wages etc.

Payment of Bonus Act

Payment of Gratuity Act

 Equal Remuneration Act

Shop Act or Factories Act or impact of none applicability of any such act.

Apprenticeship Act & Employment Exchange Act

Industrial Disputes Act & other enactments conferring employee rights

Acts as specific to your industry and geographical location.

National Holidays, Casual leave and Festival Holidays enactment

Professional Taxes and Labour Welfare Funds responsibilities

Transport Workers, Sales Workers, Canteen Workers related Acts

 

4. Reporting

You will receive a written report explaining any potential risks and the necessary steps in order of urgency that you can and must undertake to become compliant. The report also includes recommendations for preventing risks or confining risks to a minimum.

 

We hope you are not creating liabilities for your organisations, being unaware of some such provisions, which if timely taken care of, can save you and your organisation from a large unbudgeted expenditures.

 

Ask us for free advice!

NIPM: New Ideologies in People Management                      (c) 2012 Nipm.org, SCO 85 level 2 Sector 38 C Chandigarh 160 036 INDIA. +91 172 500 0505 email: joe@nipm.org                           .