Audit of HR Documentation

Audit of HR Documentation

Hiring issues play a significant role in the business of every company. Moreover, proper compliance with  regulation of them directly affect the security of employers’ rights and interests.

Given that, 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 compensating an employee for the damage cause to the health of the latter in the course of work at the cost the relevant insurance company. In case of no such agreement, the employer will have to compensate the damage in full and at its own costs and, moreover, the employer may be brought to administrative liability 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, we often encounter the failure to sign a full material liability contract with the said 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 bringing an employee to material liability 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 the company in advance.

Auditing HR documentation is a comprehensive study and legal analysis of HR documents for their compliance with existing labour 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.

Experience:

• 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.

Publications:

• Labour Relations Audit and Staying of Foreign Nationals in the Republic of Kazakhstan