Develop An Understanding Of Workforce Utilization With Legal Compliance Audit

Why is legal compliance audit necessary? Such an audit is required to examine whether the organization has complied with the rules and regulations. The performance of the company is measured regarding legal standards and areas are identified where adherence to the laws are required strictly.

Necessity of such audits

Organizations have an obligation to comply with labor laws. The department of labor audits organizations on a regular basis. These are done with the objective to see whether they are following the rules or not. In certain cases, employees may bring in legal suits against their workplace for violation of labor laws. legal compliance services in Delhi review in these cases will help in analyzing the management practices of human resources, employee laws, and other areas.

Keeps you updated

The professional firms rendering these kinds of services can help you keep an up to date knowledge of laws of employment. They ensure that your business has complied with the necessary state laws. Compliance is made affordable for all types of organizations. Through the assessment of extent of compliance, the employers will gain a thorough understanding and can understand the significance of non-compliance.

Audit process

The organizations providing these professional services will review the process of hiring, the record keeping and policies relating to human resources. An audit will consist of the following:

• Review of work timings

An analysis of all aspects relating to payroll is made to see if the firm is following the rules regarding minimum wage and overtime. A review is made of all the timings of working; it may be compensable or non-compensable. Steps are taken to ensure that they have complied with the regulations of recent times.

• Review of offers of employment

Offers of employment are examined to see if the exemption and non-exemption classifications are made and proper segregation of independent contractors, hourly employees, performance management and commission based employees.

• Plans for compensation

Reviews of compensation plans are made. These plans include salary, commissions, different kinds of incentive payments and bonus. All record keeping procedures are also examined to ensure that the retention requirements are being adequately satisfied.

• Going through personnel documents

An analysis is made of all the staff records to consider if they are being maintained from the state legal point of view.

• Preparation of detailed report

An audit consists of preparation of a detailed report which contains suggestions for improvement and also contains supplementary materials which can be utilized as an ultimate guide for reference.

Employee Handbook

An employee handbook communicates the policies of workplace. Proper drafting of this book is necessary irrespective of size of business. It is crucial to any business, be it a corporate type organization or a small business. It lays down expectations of employers, and the employees can use this as a point of reference about their behavior, conduct and compensation aspects.

Significance in workplace

On the whole, this legal compliance review will give you a better picture about the proper utilization of workforce in the company. You will be assured of professional solutions regarding your workforce and in the process avoid unnecessary legal hassles.

EZ HR Consultants is one stop shop for all HR payroll services & legal needs based out of Delhi, India. Our services start from hiring, job profile definitions, job evaluations, defining policies to legal retainer services.