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.