Human Resource Audit - Find Payroll & Compliance Gaps Before They Cost You
An HR audit is a systematic review of your organisation's HR policies, payroll compliance (PF, ESIC, gratuity, minimum wages), employment contracts, and statutory registers - the paperwork most businesses only look at closely when an inspector or a departing employee's lawyer asks for it. We review what you actually have against what the law requires, flag gaps by risk level, and give you a clear remediation plan. Useful whether you're preparing for a funding round's HR due diligence, tightening up after rapid hiring, or simply have never had anyone check this systematically.
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The key facts, in one place
Everything a founder usually has to piece together from five different pages, in one place.
- Scope
- Policies, payroll, contracts, registersFour core areas reviewed in every engagement
- Payroll checks
- PF, ESIC, gratuity, minimum wagesAgainst applicable central and state rules
- Who conducts it
- HR compliance professionalsWorking alongside our payroll and legal team
- Typical turnaround
- 10-15 business daysDepends on headcount and document readiness
- Government fee
- NoneThis is a professional advisory service, not a filing
- Starting price
- ₹9,999Scales with headcount and number of locations
- Deliverable
- Risk-ranked audit reportFindings, risk level, and a remediation plan
What is an HR audit?
An HR audit is a structured review of an organisation's human resources function against what applicable law and good practice actually require - not just a check of whether policies exist on paper, but whether they are being followed in practice. It typically spans four areas: HR policies (leave, POSH, code of conduct), payroll compliance (Provident Fund, ESIC, gratuity, minimum wages, professional tax where applicable), employment contracts and offer letters, and the statutory registers that labour law requires employers to maintain.
For most small and mid-sized businesses in India, HR compliance accumulates gaps quietly over time - a register that stopped being updated after the person who maintained it left, an employment contract template that was never updated after a policy change, or a PF/ESIC contribution that was calculated incorrectly for a few months and never caught. None of these show up until an inspection, an employee dispute, or a funding round's due diligence surfaces them - by which point they're more expensive to fix.
An HR audit is not a certification and does not itself confer any compliance status - it is a diagnostic. The value is in identifying gaps early, ranking them by risk (a missing register is different from a wrongly calculated statutory contribution), and giving you a concrete plan to close them, ideally before an inspector, auditor, or investor asks.
Who should get an HR audit?
HR audits are relevant well before a business reaches the size where it has a dedicated compliance team.
- Businesses that have grown headcount quickly and never had HR policies or payroll compliance reviewed systematically
- Companies preparing for a funding round, acquisition, or sale, where HR due diligence is a standard part of the process
- Businesses that have crossed employee-count thresholds that trigger PF, ESIC, gratuity, or other statutory applicability for the first time
- Organisations that have had a recent labour inspection, employee complaint, or dispute and want to proactively close gaps
- Companies with employees across multiple states, where payroll compliance rules (minimum wages, professional tax, shops & establishment) vary by location
- Businesses that rely on contract or gig workers and are unsure whether their classification and documentation is defensible
- Any employer that has never had its statutory registers (attendance, wages, overtime, and similar) checked against what's actually required to be maintained
What do we review during an HR audit?
Common to every entity
- Current HR policy documents (leave, POSH, code of conduct, etc.)Mandatory
- Employee master data (headcount, locations, designations, salary structure)Mandatory
- Payroll registers and salary slips for a sample periodMandatory
- PF and ESIC registration details and recent contribution challansMandatory
- Sample employment contracts / offer letters across levelsMandatory
- Statutory registers currently maintained (attendance, wages, overtime, etc.)
- Gratuity policy or trust details, if applicable
- Details of contract/gig workers, if any
How our HR audit works
We scope the audit to your headcount, locations, and known risk areas before starting.
Scoping call
We understand your headcount, locations, and any specific concerns (e.g., a recent inspection, a planned funding round, or a known gap) to scope the audit correctly.
Document and data collection
We collect HR policies, payroll data, contribution records, sample contracts, and statutory registers currently maintained.
Compliance review
We check payroll compliance (PF, ESIC, gratuity, minimum wages) against applicable rates and thresholds, review employment contracts for required clauses, and check statutory register maintenance against what's legally required.
Risk-ranked findings
Every gap we find is ranked by risk - a wrongly calculated statutory contribution is flagged differently from a missing but low-risk register - so you know what to fix first.
Report walkthrough and remediation plan
We walk you through the findings and hand over a concrete remediation plan, including which items we can help fix directly.
An HR audit finds gaps - it doesn't fix them by itself. Some findings (like updating a policy document) are quick; others (like correcting historical PF contributions) take longer and may need to be resolved with the relevant department directly. We're upfront about which is which in the report rather than presenting everything as equally urgent.
How much does an HR audit cost?
There is no government fee for an HR audit - it is a professional advisory service. Pricing scales with headcount and number of locations.
Essential
Small teams, single location
- Policy and contract review
- PF/ESIC/gratuity compliance check
- Statutory register review
- Risk-ranked findings report
Growth
Mid-sized teams, up to 2-3 locations
- Everything in Essential
- Minimum wages check across locations
- Contract worker classification review
- Remediation plan walkthrough call
Multi-Location
Larger teams across multiple states
- Everything in Growth
- State-wise compliance mapping
- POSH policy and committee check
- Priority support during remediation
Full fee breakdown
| Particulars | Government fee | Professional fee |
|---|---|---|
| HR audit (government fee) | Nil - no government fee applies | N/A |
| Essential plan (single location, small team) | N/A | ₹9,999 |
| Growth plan (mid-sized, 2-3 locations) | N/A | ₹17,999 |
| Multi-Location plan (larger, multi-state) | N/A | ₹29,999 |
Not included in any tier:
- ✕ Actual correction of historical PF/ESIC contributions with the relevant department
- ✕ Drafting new HR policies from scratch (available as a follow-on service)
- ✕ Legal representation in case of an ongoing labour dispute or inspection
- ✕ Ongoing payroll processing (available as a separate service)
Which HR audit plan fits you?
Answer three quick questions and we'll recommend the right plan.
How many employees do you have?
How many office/work locations do you operate in?
What's prompting the audit?
Why get an HR audit done
Risk reduction
- Catches payroll compliance gaps (PF, ESIC, gratuity, minimum wages) before they attract interest, penalties, or inspection findings
- Identifies missing or poorly maintained statutory registers before an inspector asks for them
Deal and funding readiness
- HR compliance is a standard due diligence item in funding rounds and acquisitions - fixing gaps proactively avoids surprises during a deal
Better HR foundations
- Surfaces outdated or inconsistent employment contract terms across levels and locations
- Gives management a clear, prioritised picture of where the HR function actually stands, rather than an assumption
Why get your HR audit done through us
Frequently asked questions
An HR audit is a structured review of an organisation's HR policies, payroll compliance (PF, ESIC, gratuity, minimum wages), employment contracts, and statutory registers, checked against applicable law and practice, resulting in a risk-ranked findings report and remediation plan.
No, an HR audit itself is not a mandatory government filing or certification. It is a voluntary, professional diagnostic exercise. The underlying obligations it checks - PF, ESIC, gratuity, minimum wages, statutory registers - are legally required independently of whether you get an audit done.
Typically four areas: HR policies (leave, POSH, code of conduct), payroll statutory compliance (PF, ESIC, gratuity, minimum wages, professional tax where applicable), employment contracts and offer letters, and statutory registers required to be maintained under labour laws.
Our pricing starts from ₹9,999 for a small single-location team and goes up to ₹29,999 for larger, multi-location organisations, depending on headcount and complexity.
Typically 10-15 business days from when we receive complete HR, payroll, and contract data, though larger multi-location organisations can take longer.
Many statutory obligations (like PF and ESIC) only kick in once you cross specific employee-count thresholds, but even smaller businesses benefit from checking whether they've correctly identified which obligations apply to them and whether basic documentation (contracts, leave policy) is in order.
We check whether your organisation has correctly identified PF/ESIC applicability based on employee count and wage levels, whether contributions are being calculated and deposited correctly and on time, and whether employee records match what's reported to the respective authorities.
Statutory registers are records that labour laws require certain employers to maintain - covering things like attendance, wages, overtime, and leave. Missing or poorly maintained registers are commonly flagged during labour inspections, and an HR audit checks whether yours are in order.
Yes. We review a sample of employment contracts and offer letters across levels to check for required clauses, consistency, and whether terms reflect your actual current policies rather than an outdated template.
Yes, HR and payroll compliance is a standard part of due diligence in most funding rounds and acquisitions. An HR audit done proactively lets you fix gaps before an investor's diligence team finds them.
We review contract and gig worker arrangements as part of the audit where relevant, including how they are classified and documented, since misclassification carries its own compliance risk.
The audit itself is diagnostic - it identifies and ranks gaps. We can follow through on remediation (policy drafting, register setup, payroll correction support) as a follow-on engagement, and the report clearly separates what needs fixing from what we can help fix directly.
A payroll compliance check (PF, ESIC, gratuity, minimum wages) is one component of a full HR audit. An HR audit is broader - it also covers HR policies, employment contracts, and statutory register maintenance, not just payroll statutory deductions.
Yes. For organisations with employees across multiple states, we map compliance requirements state-by-state, since rules like minimum wages, professional tax, and shops & establishment registration vary by location.
We walk you through the findings on a call, explain the risk ranking, and hand over a concrete remediation plan. You can act on it internally or engage us for follow-on support on specific items.
Written by Divya Nair, HR Compliance Advisory Lead · Reviewed by Sanjay Kulkarni, Labour law and payroll compliance consultant, 14 years advising SMEs on HR compliance
Last updated 9 September 2026
Sources
- Employees' Provident Fund Organisation (EPFO)
- Employees' State Insurance Corporation (ESIC)
- Payment of Gratuity Act, 1972
- Ministry of Labour and Employment - Minimum Wages
This page provides general guidance on HR audit scope and does not constitute legal advice. Applicable thresholds and rates for PF, ESIC, gratuity, and minimum wages vary by state, sector, and employee count - confirm specifics for your organisation with our team before relying on any figure.
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