Dear Seniors!! Please help me with the definition of legal audit in manufacturing setup with regards to HR or IR. I am unable to define it in interviews and vivas. Please help! Warm Regards!
From India, Vadodara
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From India, Vadodara
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Legal audit is not complex; it's just about the laws and acts that you come across almost daily. All acts and laws have provisions that need to be strictly abided by. Hence, the returns, challans, forms, etc., of the respective acts are part of the audit. The laws could be the Employees' Provident Fund & MP Act, ESIC Act, Indian Factories Act 1948, Equal Remunerations Act, Payment of Wages Act, Payment of Gratuity Act, Payment of Bonus Act, Minimum Wages Act, Industrial Disputes Act, Prohibition of Children Act, Contract Labour (Abolition and Regulation) Act, and laws of appointment and termination as per the company's policy or standing order.
Example: Payment of Bonus Act
Taking an example referring to the Payment of Bonus Act; you need to have the registers in Form A, B, C, and D. Also, you need to pay the bonus in accordance with the Bonus Act within a stipulated time frame as mentioned in the Act.
General Laws in Your Organization
Referring to general laws in your organization, it could be related to employees' muster roll, leave register, appointment letters being issued to employees or not, salary slips being issued to employees or not. Or if an employee is terminated, whether proper action is being taken or not, such as giving warnings, preparing charge sheets, domestic inquiry, show-cause notice, and then termination. Whether the process is being followed or not.
All these form an HR or IR audit, also known as a legal audit.
Regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]
From India, Delhi
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141Example: Payment of Bonus Act
Taking an example referring to the Payment of Bonus Act; you need to have the registers in Form A, B, C, and D. Also, you need to pay the bonus in accordance with the Bonus Act within a stipulated time frame as mentioned in the Act.
General Laws in Your Organization
Referring to general laws in your organization, it could be related to employees' muster roll, leave register, appointment letters being issued to employees or not, salary slips being issued to employees or not. Or if an employee is terminated, whether proper action is being taken or not, such as giving warnings, preparing charge sheets, domestic inquiry, show-cause notice, and then termination. Whether the process is being followed or not.
All these form an HR or IR audit, also known as a legal audit.
Regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]
From India, Delhi
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