An effective HR audit focuses on what truly matters: compliance, consistency, and control. It examines how HR policies, records, and systems operate in practice rather than on paper. Use the checklist below to audit HR the right way.
1. HR Policies and Documentation
Review all HR policies to confirm they exist, are current, and reflect how the organization actually operates.
This review should confirm that:
- Policies are written and formally approved
- Policies comply with labour laws and regulations
- Employees can easily access the policies
- Signed policy acknowledgements are on file
- Core policies are covered, including discipline, grievance handling, leave, attendance, ethics, and anti-harassment
- Policies are reviewed and updated periodically
2. Employment Contracts and Employee Records
Examine employment contracts and employee files to confirm completeness, accuracy, and compliance.
Ensure that:
- Every employee has a signed employment contract
- Contracts clearly state job title, duties, pay, and working hours
- Notice periods and termination clauses are lawful
- Payroll details match contract terms
- Employee files contain IDs, CVs, certificates, and offer letters
- Performance reviews, warnings, and leave records are properly filed
- Employee records are securely stored and access is controlled
3. Recruitment and Onboarding Practices
Assess recruitment and onboarding processes to ensure fairness, consistency, and proper documentation.
Confirm that:
- Job descriptions exist for all positions
- Job descriptions reflect actual responsibilities
- Recruitment approvals and interview records are documented
- Selection decisions are based on merit
- Reference checks are conducted where required
- New employees receive structured induction
- Probation reviews are completed and documented
4. Payroll and Compensation Management
Review payroll systems to confirm accuracy, approval, and statutory compliance.
Check that:
- Payroll calculations are accurate and consistent
- Salaries match approved contracts and pay structures
- Statutory deductions are calculated correctly
- Statutory remittances are paid on time
- Allowances, overtime, and bonuses are approved
- Payroll access and changes are controlled
5. Leave and Time Management
Review leave management processes to ensure accuracy and fairness.
Confirm that:
- Leave policies comply with labour laws
- Annual, sick, maternity, and paternity leave are tracked
- Leave approvals are documented
- Leave balances are updated regularly
- Employees understand how to apply for leave
6. Performance Management Systems
Evaluate how employee performance is managed and documented.
Ensure that:
- A performance management process exists
- Performance reviews are conducted regularly
- Objectives align with job roles and business goals
- Feedback is documented and communicated
- Poor performance is addressed through formal processes
7. Training and Employee Development
Assess training practices to confirm skill development and compliance.
Check that:
- Training needs are identified
- Training plans are documented
- Employees attend relevant training sessions
- Training outcomes are evaluated
- Mandatory training is conducted where required
8. Disciplinary and Grievance Handling
Review how disciplinary cases and grievances are managed.
Confirm that:
- Disciplinary procedures are clear and followed
- Employees receive a fair hearing
- Disciplinary actions are documented
- Grievances are recorded and investigated
- Outcomes are communicated and closed formally
9. Workplace Health, Safety, and Welfare
Assess workplace safety and employee welfare practices.
Ensure that:
- Health and safety policies are in place
- Employees receive safety training
- Incidents and accidents are recorded
- Corrective actions are taken promptly
- The workplace meets basic safety standards
10. HR Compliance and Legal Risk
Review compliance with labour laws and regulatory requirements.
Confirm that:
- Employment practices meet legal standards
- Statutory records are maintained
- Required notices and registers exist
- Terminations are lawful and documented
- HR practices do not expose the organization to legal risk
11. HR Systems and Data Controls
Evaluate HR systems and data management practices.
Check that:
- HR and payroll systems are reliable
- Data is accurate and up to date
- Access controls are enforced
- HR data is securely stored and backed up
Final Review and Action Planning
Document all gaps identified during the audit. Prioritize issues based on risk and urgency. Assign clear responsibilities and timelines. Finally, schedule follow-up reviews to ensure corrective actions are implemented.
