Advisory & audits
Labour Law Audit & Due Diligence
An audit shows where you stand today: what is compliant, what is at risk and what it would cost to fix. We go in depth, deliver the final report as early as we can and help management decide.
Scope of work
What we do
- End-to-end compliance reviewWe check registrations, licences, PF, ESI, PT, LWF, wages, minimum wages, bonus, gratuity, registers and returns against the law as it stands today.
- Contractor complianceFor sites that rely on contractors, we test each contractor's registrations, licence, wage payments and challans against the people actually working for you.
- Deposits, not just deductionsWe check that PF and ESI were actually deposited for each worker, not only deducted or invoiced.
- In-house HR complianceWhere your own HR team handles compliance, we give a fresh second look and show where the process can slip.
- Risk and costEach gap comes with the risk it carries and the cost of putting it right, and we point out where statutory costs can be saved.
- Pre-inspection reviewsBefore an inspection or assessment, we review your records so you can fix gaps in time.
- Mergers and acquisitionsComputation of employee liabilities, including unpaid dues, gratuity, leave and full and final settlements, with compliance certification for the deal.
- Labour Codes checkWhether your wage structures, policies, registers and registrations have moved over to the Codes.
- Financial cross-checkWe review salary, wages and related expense heads in your accounts, to the extent possible, to spot compliance defaults.
- Report and follow-upA clear written report delivered as early as possible, followed by meetings with HR and management to close the gaps.
Is this for you?
Who needs this
- Principal employers who rely on contractors
- Companies whose HR handles compliance in-house
- Buyers, sellers and investors in a merger or acquisition
- Management that wants assurance before an inspection
What you receive
- Written report of gaps, risks and recommended fixes
- Computation of past dues where gaps are found
- Contractor-wise compliance status
- For transactions: employee liability computation and compliance certification
Under the Labour Codes
Read the law
The chapters behind this service, in the official text with plain-English notes beside it.
Questions
Common questions about Audit & Diligence
What does a labour-law audit cover?
Registrations and licences, PF, ESI, PT and LWF, wages and minimum wages, bonus, gratuity, registers, returns, contractor compliance and the changes the Labour Codes require. You get a written report of each gap, the risk it carries and what to fix first.
We use contractors. Why audit them?
Because their failures can land on you. Under the OSH Code, if a contractor does not pay wages, the principal employer must. The Code on Social Security makes the employer liable for PF and ESI of workers engaged through a contractor, with a right to recover from the contractor. We check each contractor's records against the people on your site.
Can you do due diligence for an acquisition?
Yes. We compute employee-related liabilities such as unpaid dues, gratuity, leave and full and final settlements, flag compliance gaps that carry risk, and provide compliance certification for the transaction.
How long does an audit take?
It depends on the number of locations, employees and contractors. We agree scope and timing with you at the start and aim to deliver the final report as early as possible, so management can decide quickly.
Does an audit help before a government inspection?
Yes. Inspections under the Codes are increasingly web-based and risk-based, and your records decide how they go. A review beforehand finds the gaps while there is still time to fix them.
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