HR Audit Self-Checklist

An HR audit does not have to begin with an auditor walking into your office with a giant spreadsheet.

HR teams can do a basic internal review themselves.

The purpose is simple: find the gaps before they become employee complaints, statutory issues or expensive corrections.

1 Employee Records

Start with the basics.

Does every employee have the necessary employment documentation?

Check:

• Appointment letters

• Employee details

• ID and statutory records

• Joining documents

• Probation status

• Confirmation records

• Resignation records

• Full and final settlement documents

Missing paperwork is often the easiest problem to fix and one of the easiest to overlook.

2 Salary and Payroll

Compare the employment terms with what is actually being paid.

Check:

• CTC

• Gross salary

• Deductions

• PF

• ESI, where applicable

• Bonus and incentives

• Payslips

The aim is to identify discrepancies between what the employee was promised and what payroll is actually processing.

For PF-covered establishments, EPFO provides specific contribution and compliance requirements, including the statutory contribution framework.

3 Leave and Attendance

Check whether the leave policy exists, whether employees know about it and whether the records match the policy.

Look for:

• Leave balances

• Attendance records

• Holiday lists

• Overtime records

• Work-from-home records

• Leave approvals

If the company says one thing in its policy and does another in practice, that gap needs attention.

4 POSH Compliance

This deserves its own section.

Check:

Is the Internal Committee properly constituted?

Is the external member appointment valid?

Are committee members trained?

Is the POSH policy accessible?

Are awareness programmes conducted?

Are reporting channels clearly communicated?

The POSH Act specifically places duties on employers relating to a safe workplace, awareness programmes and facilities for the Internal Committee.

5 Employment Policies

Review whether policies are actually current.

Check policies relating to:

• Leave

• Attendance

• Remote work

• Code of conduct

• Anti-harassment

• Grievances

• Information security

• Disciplinary procedures

• POSH

A policy written five years ago may not reflect how the organisation works today.

6 Statutory Compliance

The exact requirements depend on the organisation, workforce, location and applicable laws.

Depending on the establishment, the audit may need to cover:

• EPF

• ESI

• Gratuity

• Bonus

• Minimum wages

• Shops and Establishments requirements

• Labour Codes and applicable rules

• Professional tax

• POSH

• Contract labour requirements

For organisations operating across states, do not assume that one checklist works identically everywhere.

7 The HR Self-Audit

A simple internal audit can be structured as:

Green: Compliant and documented.

Amber: Requirement exists but needs updating.

Red: Missing, unclear or not implemented.

Then assign each red or amber item:

Owner → Action → Deadline → Evidence of completion

That last part matters.

An audit is not useful if it produces a beautiful spreadsheet that nobody revisits.

The point of an HR audit is not to prove that HR has no problems.

It is to find the problems while they are still manageable.

A good HR audit should leave the organisation with one clear answer:

If someone asked us tomorrow to prove how we handle our employment obligations, could we actually show them?

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Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice or a legal opinion. Laws and judicial interpretations are subject to change. Readers are advised to seek professional legal advice based on their specific circumstances.