HR Audit Services in Bangalore
Our HR audit reviews your HR policies, statutory compliance and records in one exercise, then turns every finding into a tracked fix, so your people practices are compliant, consistent and ready for inspections or investor due diligence.
See your HR risks before an inspector or investor does
HR compliance gaps build up quietly. Policies written for a 30-person startup no longer fit a 300-person company across three cities. Salary structures drift away from the wage rules. Contractors are added without checking their compliance. POSH committees lapse when members leave. Each gap is small on its own, but together they become a real liability during an inspection, a dispute or a funding round.
Nhancesmart's HR audit services in Bangalore give you an independent, evidence-based view of where you stand. Our auditors review HR policies, statutory registrations and filings, payroll and wage structures, contract labour, POSH and employee records, test them against the law and good practice, and rate every finding by risk.
What makes our audit different is what happens after the report. Findings become workflows in Complysmart and Attendenz, with owners and deadlines, and our team can stay on to close them. You get an audit that leads to fixed problems, not just a document.
What's included
- Review of HR policies, employee handbook and appointment letters
- Statutory registrations and filings: PF, ESI, Professional Tax, LWF and Shops and Establishments
- Wage structure review against the Code on Wages and minimum wage rules
- Payroll, leave, attendance and overtime records
- Contract labour (CLRA) and vendor compliance checks
- POSH: Internal Committee, policy, training records and annual reports
- Employee records, personal files and exit documentation
- Risk-rated gap report, remediation plan and board-ready summary
Laws and rules covered
- Code on Wages, 2019
- Wage definition, minimum wages, timely payment and equal remuneration.
- EPF, ESI, Gratuity and Bonus Acts
- Coverage, contribution accuracy, nominations and statutory benefits.
- Shops and Establishments / Factories Act
- Registration, working hours, leave, overtime and statutory registers.
- Contract Labour Act, 1970
- Principal employer registration, contractor licences and contractor compliance.
- POSH Act, 2013
- Internal Committee constitution, policy, awareness and annual reporting.
- Maternity Benefit Act, 1961
- Leave, benefits and crèche facilities where applicable.
How our hr audit service works
- STEP 01
Scope
We agree the entities, locations and areas in scope, and share a document request list.
- STEP 02
Review
Our auditors examine policies and records, test samples and interview the people who run each HR process.
- STEP 03
Report
You receive a gap report with the legal reference, risk rating and recommended fix for every finding.
- STEP 04
Fix
Findings become tracked workflows in Complysmart and Attendenz, and we support the remediation until it is done.
When to commission an HR audit
Most companies come to us at one of these moments:
- Before a funding round, acquisition or IPO due diligence
- After crossing 50 or 100 employees, or opening in a new state
- When changing payroll provider or bringing HR operations in-house
- After a notice from the labour department, EPFO or ESIC
- Every year, as part of good governance and board reporting
HR audit and the new Labour Codes
The four Labour Codes change how wages are defined, how gratuity applies to fixed-term employees, how quickly full and final settlements must be paid and how establishments register. An HR audit is the most efficient way to find what needs to change in your policies, contracts and payroll, and to plan those changes before they are enforced.
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Audit findings move straight into Complysmart as tracked tasks with owners and deadlines, so you can see every gap close.
HR Audit: frequently asked questions
Our HR audit covers HR policies, statutory documents (PF, ESI, Professional Tax, gratuity and bonus), wage structure under the Code on Wages, Shops and Establishments, POSH, contract labour (CLRA) records, payroll registers and leave records. You receive an evidence-based gap report with a remediation plan.
We recommend a full HR audit once a year with quarterly spot checks, and an additional audit after major regulatory changes such as the Labour Codes, when expanding into a new state, or after rapid headcount growth.
For SMEs with 50 to 200 employees in one city, an audit typically takes 7 to 10 days. Multi-state enterprises usually take 3 to 4 weeks. The fee depends on headcount, locations and contract labour strength.
A normal audit ends with a static report. Our findings become tracked workflows in Complysmart and Attendenz, with owners and deadlines, so each gap is actually closed and stays closed.
Yes. Our advisors have handled labour inspections for more than 15 years. We keep your registers inspection-ready and liaise with the PF, ESI, factory and labour departments.
A wage code audit reviews your salary structures against the Code on Wages, 2019: the rule that wages must be at least 50% of total pay, the PF, ESI and gratuity impact, overtime calculations and contractor wage compliance. It is essential preparation for the Labour Codes.
Yes. Our integrated HR audit covers POSH, CLRA, Shops and Establishments, the Factories Act and payroll compliance in one report, so gaps don't sit in separate silos.
Companies with 50 or more employees, multi-state operations or a large contract workforce; companies facing investor due diligence or preparing for an IPO; and any company that received a compliance notice in the last 12 months.
A gap report with risk ratings, a remediation workflow in Complysmart, a statutory register checklist, a board-ready remediation plan and support while the fixes are implemented.
HR, compliance and audit under one roof, AI-native tools, execution-led delivery and pan-India coverage of 29+ laws in 36 states. That is why more than 2000 businesses trust us.
Explore related compliance services
Statutory Compliance Audit
Our statutory compliance audit checks every labour law obligation your business carries, from registrations and registers to remittances and returns, and gives you a risk-rated report with a clear plan to fix each gap before an inspector finds it.
Learn more →Vendor Compliance Audit and Contractor Compliance
We audit every vendor and contractor who supplies workers to your sites, verifying PF, ESI, wages and licences, so you are not left paying their dues as the principal employer. Each vendor gets a live compliance risk score you can act on.
Learn more →New Labour Codes Compliance 2026
We help employers move to India's four new Labour Codes with a structured readiness assessment, financial impact modelling and hands-on implementation, so the transition is planned, costed and compliant across every state you operate in.
Learn more →Read practical guidance on these topics on the Nhancesmart blog, or see all our services.
Book a free compliance check
Tell us about your business and our team will map your hr audit obligations and the gaps to close first.