Checklist for Internal Audit – HR

HR Audit – Evaluation of all operational HR policies (recruiting hiring, performance management, training, leave management, termination, employee retention, compensation and benefits)

A review of HR indicators (turnover, employee satisfaction, absenteeism rates, complaints and lawsuits)

Particulars Checked By Remarks…
Check that details relating to manpower requirement is informed to the management “1month” well in advance.-
No. of Executive required
Kind of Executive required
Qualification required
Salary Slab.
B Interview
1 Check that interview is taken by a committee appointed for the purpose, comprised of minimum three members-
One Functional Head – Respective departmental head.
One Higher official – Unit Head
One HR Manager /Executive
2 A proper form provided by the HR Executive is duly filled by the candidates.
3 The interview is conducted at Unit level for first phase and the short listed candidates are interviewed by the higher management for final phase.
C Letter Of Offer
Offer letter is given to the selected candidates within 2 days for their acceptance
D Appointment
Check that
1 Appointment letter is given within 3 days of joining.
2 Personal data form/Service book is filled within 3 days of joining.
3 Terms and conditions associated with appointment presents a clear picture.
4 Complete code of conduct is provided to the candidate who thoroughly reads it
5 Code of Conduct shall be updated timely
E Training & Development
1 Probation period of 0-3 months is taken into consideration depending upon the work requirements.
2 Lock-in-period of one year on completion of probation period.
3 Performance appraisal during probation period and thereafter is done by the immediate boss and HR Executive and then the same is reported to the higher management.
F Legal Compliances Relating To Hr-
1 Check for Applicability of various acts and its due compliance by HR Executive-
The Apprentices Act,1961
The Employee’s Provident Fund and Miscellaneous Provisions Act,1952
The Employee State Insurance Act,1948
The Factories Act,1948
The Minimum Wages Act,1948
The Payment of Bonus Act,1965
The Payment of Gratuity Act,1972
The Payment of Wages Act, 1936
The Trade Union Act,1926
The Workmen’s Compensation Act,1923
Factory and Boilers Act
The Industrial Disputes Act, 1947
Contract Labour (Regulation and Abolition) Act, 1970
The Industrial Employment (Standing Orders) Act, 1946
Air (Prevention and Control of Pollution) Act, 1981
Water ( Prevention and Control of Pollution) Act, 1974
The Environment (Protection) Act, 1986
Noise Pollution (Regulation and Control) Rules,2000
The Personal Injuries (Compensation Insurance ) Act, 1963
2 All the required registers and documents as per above applicable acts is maintained.
3 Various challans are paid on time (i.e., Challan for PF has to be paid by 15th of next month and Challan for ESI has to be paid by 20th of next month)
4 Consolidated HR records are sent to the HR head for the group including details about all the compliances made by the Company by 25th of next month in the prescribed format.
G Accidents & Causalities
1 Report of the accident is prepared on the same day in the prescribed format
2 Legal Provisions applicable are complied with.
3 Facility of free medical check-ups is provided to the employees at regular intervals.
H Attendance
1 Daily attendance is taken either in morning or evening in Attendance Register
2 Separate register is maintained for daily workers & staff on probation
2 This register is checked and signed by two Executive (i.e. by HR Executive and Unit head)
3 Gate pass register is maintained. Entries relating to visitors is made in the register and at the end of the day it is verified by one authority.
I Salary And Wages Procedure
Check for-
1 Pay-scale and salary structure of the labour & staff.
2 Calculations relating to allowances, deductions, perquisites etc according to the provisions.
3 Overtime & Idle time workings
4 Salary payment by 10th of next month.
5 Proper workings of salary sheet and its authorisation thereon
J Leave Procedure
Various leaves taken by employees are classified in Paid, Casual, Sick and are allowed as per the HR Policy
Proper notice or salary in lie thereof before resignation/termination as per HR Policy
1 Any grievance relating to workplace is informed to immediate bosses or the concerned unit head who further reports it to the higher management.
2 Reporting is done both in verbal and written format.
1 After completion of 18 months of service, promotion or hike in salary on the basis of performance appraisal and as per management decision.
2 Bonus amount would be calculated/decided depending upon the employee performance and at the discretion of management.
3 Employees should submit Self Appraisal Performance Report on quarterly basis.
4 Employee birthdays and anniversaries is given due consideration one Greeting card should is sent on behalf of the Company.
5 A suggestion or a compliant box is kept and it is the responsibility of the HR Department to check the same and reporting of the same to the unit head.
Expenses are reimbursed to the employees incurred for official purposes as per the decision of management committee.

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