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.
Know exactly where you stand
Most companies believe they are compliant until an inspection, a due diligence or an employee dispute proves otherwise. A statutory compliance audit replaces that belief with evidence. We test what the law requires against what is actually in place, establishment by establishment, and document every gap with its legal risk.
Nhancesmart has conducted compliance audits for employers across manufacturing, BFSI, IT/ITES, retail, logistics and construction. Our auditors combine labour law expertise with Complysmart's AI gap analyser, which compares the required obligations for each location against the records available, so the audit is thorough and repeatable rather than dependent on a checklist.
The output is not a list of observations. It is a prioritised remediation plan with owners and timelines, and we can stay on to close every gap with you.
What's included
- Applicability mapping of central and state labour laws for each establishment
- Verification of registrations, licences and their validity
- Review of statutory registers, records and display requirements
- Testing of PF, ESI, PT and LWF remittances against payroll and headcount
- Review of half-yearly and annual returns and their filing status
- Contract labour and vendor compliance checks where contractors are engaged
- Risk-rated findings: critical, high, medium and low
- Remediation plan, management presentation and optional follow-up audit
Laws and rules covered
- Shops and Establishments / Factories Act
- Registration or licence, working hours, leave, overtime and safety records.
- EPF and ESI Acts
- Coverage, contribution accuracy, timeliness and reconciliation with payroll.
- Code on Wages and wage laws
- Minimum wages, wage registers, payment timelines, bonus and equal remuneration.
- Payment of Gratuity and Maternity Benefit Acts
- Nomination, eligibility, payments and statutory benefits.
- Contract Labour Act, 1970
- Principal employer registration, contractor licences and contractor compliance.
- POSH Act, 2013
- Internal Committee constitution, policy, awareness and annual reporting.
How our statutory compliance audit service works
- STEP 01
Scope
We agree the establishments, laws and period in scope, and share a document request list.
- STEP 02
Audit
Our auditors review records on site or remotely, test samples and interview the people who run each process.
- STEP 03
Report
You receive a risk-rated gap report with the legal reference, impact and recommended fix for every finding.
- STEP 04
Remediate
We help close the gaps and can re-audit to confirm that each fix has held.
When you should commission a statutory compliance audit
An audit is most valuable before something forces the question. Companies typically engage us at these moments:
- Before an investment, acquisition or due diligence exercise
- After rapid headcount growth or opening new locations
- When changing payroll vendor or bringing compliance in-house
- After receiving a notice from the labour department, EPFO or ESIC
- Annually, as part of good corporate governance and board reporting
What your audit report contains
Every finding is written so that the person who has to fix it can act on it. For each gap we record the establishment, the law and section it relates to, what we found, the evidence we reviewed, the risk rating and the recommended corrective action. Findings are grouped by law and by establishment, so HR, finance and site teams can each see their own actions.
Leadership receives a one-page summary with an overall compliance score for each establishment, the number of critical and high-risk findings, and the potential financial exposure where it can be estimated, such as unpaid contributions, interest and damages. This gives the board a clear view of compliance risk and of progress between audits.
Audit once, then stay audit-ready
A one-time audit tells you where you stand today. Moving the same checks into Complysmart turns the audit into a live control: obligations, filings and evidence are tracked continuously, and new gaps are flagged as they appear rather than at the next annual review.
Trusted by 2000+ businesses across India
Fifteen years of labour law practice, AI-native compliance platforms and independently certified security.
Labour law compliance software
Powered by Complysmart
Complysmart's AI gap analyser and risk scoring power our audits, and can keep running after the audit so your compliance status is always current.
Statutory Compliance Audit: frequently asked questions
It is an independent review of whether your business meets its legal obligations under labour and employment laws: registrations, registers, remittances, returns, displays and benefits. The result is a report of gaps and the risk each one carries.
For a single establishment, typically one to two weeks after we receive the documents. Multi-location audits are planned in phases, and the timeline is agreed at the scoping stage.
Both are possible. Many records can be reviewed remotely; we visit sites where physical registers, displays or welfare facilities need to be verified.
Registrations and licences, payroll and attendance records, PF and ESI challans and returns, statutory registers, contractor documents and policies. We share a detailed list at the start.
Yes. Every finding comes with a recommended fix, and our compliance team can take ownership of the remediation and the ongoing compliance calendar.
Yes. Audits are conducted under confidentiality, and Nhancesmart is ISO 27001:2022 certified and SOC 2 Type II audited for information security.
Explore related compliance services
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 →Labour Law Compliance Services in India
As a pan-India compliance consulting firm, we manage multi-state labour law compliances for employers in every industry, from registrations and statutory registers to monthly remittances and inspections, so you run audit-ready all year. Many businesses across India rely on Nhancesmart to keep their workforce compliance clean.
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 statutory compliance audit obligations and the gaps to close first.