Hiring issues play a significant role in the business of every company. Moreover, proper compliance with their regulation directly affects the security of employers’ rights and interests.
For this reason, directors of companies should understand the significance of documentation that governs employment as well as the effect of the lack or improper execution of such documentation. For instance, the availability of an insurance agreement for the employer's civil liability will allow the employer to compensate an employee for the damage caused to their health in the course of work at the cost of the insurance company. In case of no such agreement, the employer will have to compensate the damage in full at its own costs, and the employer may be held administratively liable for failing to sign such an agreement.
In our practice, there are often cases when employees using the employer's property caused damage to that property or refused to return it after they had quit. In the course of analysing HR documentation, employers often fail to sign a full material liability contract with the employees and of the transfer of assets to employees without registration of the relevant delivery-acceptance acts. In these situations, ensuring prompt compensation for damage to the employer or holding an employee materially liable was fairly difficult.
Given the above, in order to avoid critical situations, which may reveal shortcomings in the execution of documents and entail material costs for a company, we recommend auditing HR records in advance.
Auditing HR documentation entails a comprehensive study and legal analysis of HR documents for their compliance with existing labor laws.
As a result of the audit we will provide a report covering the following:
actual condition of employment documentation in the company;
presence of labour law violations identified in the course of the audit;
legal sanctions that may be imposed on the company, in case of violations revealed by controlling authorities, and other related risks;
plan of action to eliminate the revealed violations.
Auditing HR documentation in Kazakh subsidiaries of an international manufacturer and supplier of telecom equipment for mobile networks, the Hungarian Oil and Gas Holding Companies, the major Chinese Energy Company, the representative office of the international pharmaceutical company, the largest Kazakhstani cement producer, and a Kazakhstani subsidiary of Chinese Oil-and-Chemical Corporation.
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