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HR Audits: What Are They and Why Are They Important?

Elizabeth Landsberg

An HR audit is a review of all existing documentation regarding employment, including employment policies and practices, to ensure legal compliance. Labour legislation changes periodically, so it is important to ensure your HR audits are done regularly and are updated where necessary.
 
The Department of Labour has beefed up its number of Labour Inspectors, who have been given quotas to be achieved monthly. There is a strong chance they will come knocking on your door, without prior notice. If the inspector finds that you are non-compliant with legislation, he or she has the power to issue compliance orders. Non-compliance with a compliance order can ultimately result in a court order.
 
Employees today are also very aware of their rights, highlighting the need for employment practices to comply with legislation. Good practice will also minimize the allegations of unfair labour practice, therefore minimizing the chances of a visit to the CCMA, something we all want to avoid.
 
Apart from ensuring compliance with legislation, having all the necessary employment documents and policies in place  gives employees a sense of comfort with the fact that their documentation is being well managed. This, too, provides operational guidelines for management, resulting in a better working environment for all.
 
There is a move away from lengthy, legal policy documents to a simpler, people-orientated approach. This adds value to your organisation, rather than strangling it in red tape.
 
In summary, having the basics in place to ensure compliance with legislation and minimizing risk are essential. Having policies and procedures that are people-orientated makes for a happy and productive workforce.