Contact us and we will help you solve your doubts without any commitment!
What are the general areas to review in a company labor audit?
One labor audit it is essential to check if your company complies with labor regulations, the working conditions of your workers, as well as to quantify possible labor contingencies that may arise from a breach, and to take the necessary solutions to correct any negative situation within the framework of labor relations.
The labor audit is a highly recommended preventive procedure for any company to verify that they comply with labor legislation.
In the labor audit of a company, an exhaustive analysis of all the information and documentation provided is carried out, and a final report is finalized with the drafting that allows to know the real situation of the company regarding the fulfillment of the labor and Social Security obligations. Among the main areas are:
- Activity and business structure: Corporate purpose, activity headings, geographical location of workplaces, Contribution Account Codes, functional and governance organization chart.
- Collective agreement and agreements: Analysis of the Collective Agreement of application, and agreements that may exist with the representation of workers and study of acquired rights.
- System and working time: Review of compliance with legal obligations in this regard, examination of absenteeism control procedures, and performance of overtime control and forms of payment or compensation.
- Recruitment: Analysis of the contracting modalities used, existing special labor relations, verification of the degree of compliance with administrative obligations and concurrence of the legal requirements for each type of contract. Examination of contractors and subcontractors for the detection of risks. Occupational hazards of the self-employed. Special study of the volunteer group.
- Salary structure: Analysis of the company’s remuneration policy and its adaptation to the agreement. System of remuneration of senior managers, detection of risks and contingencies.
- Socio-assistance benefits: Analysis of the different social benefits and their implementation. Commitments derived from legal obligations.
- Social security: Verification of compliance with Social Security obligations in the different regimes existing in the company. Detection of possible risks and quantification.
- Prevention of occupational risks: Verification of compliance with the legal obligations imposed by the Law on the Prevention of Occupational Risks and its implementing regulations.
- Equality Policy: Verification of compliance with the legal obligations imposed on equality.
- Workers’ representation: Identification of representative bodies, control of electoral processes, compliance with obligations to inform workers’ representatives and the means at their disposal.
- Terminations of the employment relationship: Individual dismissals made, causes thereof, acts of conciliation, compensation paid, procedures followed, terminations of temporary contracts, resignations of workers, Employment Regulation Files.
- Situations of suspension of the employment contract: Analysis of the most common causes, temporary disability, maternity / paternity, leave, suspensions by mutual agreement.
- Pending litigation: Analysis of pending judicial, administrative or contentious administrative proceedings.
What is the purpose of a company’s labor audit?
An audit of the labor field will allow to verify if a company complies with the requirements of hiring, social security, salary policy or occupational health and safety, among others.
To do this, a labor auditor will analyze and evaluate all the documentation related to the contracts of the workers, the registration of working hours, wages, vacations, settlements and settlements, etc. Likewise, the labor auditor may also review the Internal Regulations and the Health and Safety Regulations of the company.
Although the labor audit procedure is totally voluntary for companies, since there is no type of legal obligation for its realization, it is highly recommended, in order to verify that the regulations applicable to the company are complied with, and as a method of prevention before a possible labor inspection.