HR Audit basically refers to 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 the 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.
As professional service from Frontline, we offer the following two major services under HR Audit.
Statutory - HR Audit
As per the Labor Act 2074 and required by the Ministry of Labor, Employment and Social Security, every Nepales organizations need to submit the Labour Audit report on an annual basis. It is a compliance Audit to identify whether the HR process is in line with Law or now. Following are the major contents to be covered in HR Audit as per Labour Act 2074.
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 do 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 the social security fund?
If money is deposited in the 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.