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Don't let people who don't have the expertise conduct your HR audit. Know the five people who are legally required to do it

by , 09 February 2015
A HR audit is one of the most important activities in your company. After all, it helps you make sure everything in your business - from policies, procedures and practices - is in line with current labour laws.

That's why the relevant people must do it. They must have thorough knowledge of HR and current labour laws. Otherwise the audit won't help you at all and you'll be at risk of penalties. And as you know, some DoL penalties go up to R2.7 million.

Don't take chances.

Keep reading to discover the five people who are legally required to do an HR audit in your company.

Here are the five parties that can conduct HR audits

The Practical Guide to Human Resources Management outlines the five people who can conduct HR audits:
1. Employees in the HR department (this is when you do a self-audit).
2. Internal company auditors (this is when you do the audit as part of a wider internal company audit).
3. External HR experts (this is when external experts assess and audit your company on your behalf).
4. External auditors (this includes company auditors when you do a company-wide risk or compliance audit);
5. The Department of Labour (this is when a DoL inspector comes to audit your company).

So why is it so important that only these five parties conduct HR audits?

Much of HR is about legislative requirements. It's always about what the law requires you to do, for example:
  • Keeping records like attendance registers;
  • Storing information about salaries;


  • Following a fair process when recruiting; and
  • Following a fair procedure to conduct a disciplinary hearing.
All the people above have a good understanding of all the law requirements. And they understand how HR works. That's why they're in the best position to do HR audits. You can certainly trust their findings and make sure you comply with labour law.
Now that you know the five parties that can do an HR audit, take a look at the four methods they can use…

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Avoid penalties from the DoL by making sure HR is fully aligned to the new labour laws!
Along with the changes to the labour law, you are required to:
  • Make sure your HR policies and procedures are appropriately aligned to labour legislation;        
  • Check that your company guidelines are being adhered to by your managers and employees;
  • Check the level of compliance within the company; and
  • The areas and level of risk there is in terms of non-compliance within your company.
With the recent labour law changes and the hefty increases in penalties for non-compliance, it has become more critical than ever to ensure that HR is fully aligned to the changes in the laws.
Find out how to eliminate the risk of a crippling fine from the Department of Labour.

Here are the four methods to conduct HR audits

The four ways to do HR audits are to:
  1. Audit the entire HR function
  2. Audit a specific area of HR
  3. Audit a sub-area of HR
  4. Do small audits on a regular basis
To get a complete breakdown of these methods, check out the HR Audit Electronic Report. It also contains:
  • An easy-to use checklist that will help you see if it's time for you to do an HR audit in your company;
  • A checklist of what to look out for in your HR policies, processes and procedures when you do an audit;
  • Four ways to avoid non-compliance penalties;
  • A step-by-step action plan for conducting an HR audit; and
  • A template audit finding record.

Here's the bottom line: If you want an HR audit to achieve its objectives, make sure only these five parties conduct it. 

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