Personnel (HR) audit
Personnel (HR) audit (examination of personnel documentation ) is a check of compliance of maintenance of personnel documentation within an organization with standards set by the Azerbaijani legislation and other legal acts binding on the territory of Azerbaijan, detection and correction of the discovered violations as well as prevention of the negative effects of these disorders . Conducting personnel audit includes :
- verification of the availability and correctness of local regulations of the organization (internal labour regulations , regulations on protection of personal data , regulations on remuneration of employees, regulations on labour protection , etc.)
- verification of the availability and correctness of personnel records ( staffing , vacation schedule , timesheets , labour contracts with employees , job descriptions , etc.)
- verification of the documentation and registration of personnel orders (employment, dismissal, transfer , holidays , etc.)
- verification of the maintenance of employee’s personal cards
- verification of the maintenance of personnel files of employees
- verification of the maintenance of employee’s employment history
- verification of the process of familiarization of employees with the company’s local acts.
The procedure for the provision of services on personnel documentation audit: verification of the availability of the Company – Customer‘s personnel documentation required by the Legislation of the Republic of Azerbaijan, drawing conclusions on the results of personnel documentation inspection. Conclusion includes: a list of verified documents, a list of violations, the employer’s liability for breach of labour law, risks that may arise in case the violations are not eliminated (penalty rate for each violation). Audit of personnel records should not be confused with the audit conducted by the accounting department of the organization. Audit of personnel records can be carried out by professionals who have expertise in the field of labour law and knowledgeable with regards to regulations concerning registration personnel documents. Personnel audit may be conducted independently (internal personnel audit) by setting a task for the company‘s HR managers / HR professionals. However, by empowering staff members responsible for maintaining personnel records with the task of conducting audit, it is important to understand that they are primarily employees and are not always able to give an independent and objective assessment of the situation. First, because they will actually audit their own performance. Second, it is obvious that the results of the inspection may affect their remuneration. Third, it is these employees that will have to correct mistakes, develop and implement recommendations (offers) to improve their own performance in the event of any deviations. Inviting external auditors (counsellors) the company is able to save time by getting an additional resource at the same time in the form of knowledge and experience of external consultants. In order for external auditors to comprehensively assess the state of personnel document, they need to: – examine procedures for documenting labour relations in the company; – analyze the composition of the personnel documentation and determine its compliance with applicable law; – analyze personnel documentation storage system . Legal force of personnel documents depends on several conditions :
Documentation requirements . Documents not issued in compliance with the labour code of the Republic of Azerbaijan are null and void .
When conducting series of procedures for personnel audit, it is necessary to use standardized forms of primary documentation records for accounting and remuneration . In addition to the requirements for registration of personnel documentation, labour legislation also contains certain requirements as to its content. Compliance of documents with all of the requirements is subject to verification during the audit. 1.
The availability of all the listed documents is being checked. When checking orders on staff it is also necessary to ensure the availability of documents precedent to these orders. Often these documents exist only virtually – there is a reference to them mentioned in the order, but the actual documents are not compiled by the personnel department. 2. Checking for compliance of the documents with applicable laws. Both mention of all the necessary details in the document and their compliance with requirements are being verified. Every employer must ensure the safety of personnel documents in such a way to protect his documents from unauthorized access, loss, damage or other emergencies. The requirement to ensure the safety of documents generated throughout the period of the organization‘s activity, and their constant archiving is contained in the current legislation. If the personnel office has not developed a proper system of storage of personnel documents, ensuring their safety would be impossible. To search in document database: