HR audits in Moscow, HR records management

What do we do in the framework of the service HR audit?

1
Assess
- All aspects of the HR management process
- Completeness, efficiency and correctness of the system of preparation, approval, registration and storage of HR documents
- Presence of the necessary HR documents and correctness of their execution in terms of the requirements of Russian legislation and the auditing practices of the State Labor Inspectorate
2
Elicit
- Internal policy – deviations in HR documents internal policies and procedures from the requirements of Russian legislation
- Organizational structure of the HR office, appropriateness of its work and reserves to improve its effectiveness
- Level of professional competence of HR staff
- Justification of actual payments to the employees by necessary HR documents*
- Correctness of calculation of the average wage; and, optionally, we can provide consulting on fiscal risks
* We carry it out, bringing additional resources – an accountant calculating payroll
3
Provide
- Minimization of HR documents to decrease the material and labor costs of the company
- Justification of HR decisions taken in the company
- Correspondence of HR document flow to federal standards and the requirements of labor legislation
- Completeness, accuracy and high quality of HR recordkeeping in the company
- Protecting Managers against any claims
- Defense of the company upon the occurrence of labour dispute

What documents are subject to HR audit?

Basic documents
For the company’s goals
According to situation

Instruments of incorporation
Regulation on personal data protection
Regulation on commercial secrets
Regulation on Remuneration of Labor and Financial Incentives
Internal Labor Rules
Logs of familiarization of employees with internal policies and procedures
Book of record of the flow of employment record books and their inserts

Staffing schedule
Vacation schedule
Time recording sheet
Payroll records
Collection of data according to the type of accruals and deductions for the previous year (without amounts)
Employee personal record form
Civil Law Agreements / Contracts for Work and Labor
Post profiles
Orders on the core activities of the company
Orders on a company’s personnel
The orders concerning employment, transfer, dismissal, providing incentives, etc.

Employment	Employment agreement An order “On employment” Record in the employee’s employment record book Employee’s signature in the employee’s personal record form T-2 Registration in the Book of record of the flow of employment record books and their inserts
Transfer to another position	An order “On amendments to the staffing schedule” Additional agreement An order “On Transfer of the employee to another position” Entry in the employment record book Employee’s signature in the employee’s personal record form T-2
Salary modification	Additional agreement An order “On salary modification”
Vacations: annual paid; annual additional paid leave; unpaid vacation	Vacation schedule Vacation request letter An order “On giving the employee a vacation”
Maternity leave	Temporary disability leave Employee’s statement Order on granting maternity leave
One-time allowance in respect of a child’s birth	Employee’s statement Reference on child’s birth Letter of the employment verification of the other parent, indicating that allowance in respect of a child’s birth has not been granted or paid An order on allowance payment
Childcare and parental leave	Employee’s statement A copy of the child’s birth certificate Letter of employment verification of the other parent, indicating that childcare allowance has not been granted or paid An order on granting childcare and parental leave
Overtime (including work on rest days and public holidays)	Directive (internal memorandum) of the head of the unit Notification of employee / employee’s consent An order “On overtime work”
Irregular working hours	Local regulation containing list of positions that are subject to irregular hours Reference in the Employment agreement on granting additional paid leave
Disciplinary sanctions	Report on breach of discipline Employee’s explanatory note or Act on refusal to give explanations Employer’s order on the application of disciplinary sanctions (it is produced for the employee for his/her signing within 3 business days from the date of issue) Act on refusal to be informed (if the employee refuses to be notified under signed acknowledgment)
Business trips	Documents confirming reasons for suspension from work An order “On suspension from work on the grounds of…”
Suspension from work	Documents confirming reasons for suspension from work An order “On suspension from work on the grounds of…”
Termination of employment agreement (dismissal)	On the employee’s part: Employee’s notice An order “On termination of employment agreement” Employee’s signature in his personal record form T-2 Registration in the Book of record flow of employment record books and their inserts Upon mutual agreement of the Parties: An agreement of the parties on the termination of the employment agreement An Order “On termination of the employment agreement” Employee’s signature in his personal record form T-2 Registration in the Book of record flow of employment record books and their inserts Expiration of employment agreement: Notification of employee An Order “On termination of employment agreement” Employee’s signature in his personal record form T-2 Registration in the Book of record flow of employment record books and their inserts
Termination of employment agreement in case of reduction of staff	An Order “On reduction of staff” New staffing schedule Notification of Government Employment Service Notification of employees An Order “On termination of employment contract” for every employee Employees’ signatures in their personal record forms T-2 Registrations in the Book of record flow of employment record books and their inserts

Employment

Employment agreement
An order “On employment”
Record in the employee’s employment record book
Employee’s signature in the employee’s personal record form T-2
Registration in the Book of record of the flow of employment record books and their inserts

Transfer to another position

An order “On amendments to the staffing schedule”
Additional agreement
An order “On Transfer of the employee to another position”
Entry in the employment record book
Employee’s signature in the employee’s personal record form T-2

Salary modification

Additional agreement
An order “On salary modification”

Vacations (annual paid,
annual additional paid leave, unpaid vacation):

Vacation schedule
Vacation request letter
An order “On giving the employee a vacation”

Maternity leave

Temporary disability leave
Employee’s statement
Order on granting maternity leave

One-time allowance in respect of a child’s birth

Employee’s statement
Reference on child’s birth
Letter of the employment verification of the other parent, indicating that allowance in respect of a child’s birth has not been granted or paid
An order on allowance payment

Childcare and parental leave

Employee’s statement
A copy of the child’s birth certificate
Letter of employment verification of the other parent, indicating that childcare allowance has not been granted or paid
An order on granting childcare and parental leave

Overtime (including work on rest days and public holidays)

Directive (internal memorandum) of the head of the unit
Notification of employee / employee’s consent
An order “On overtime work”

Irregular working hours

Local regulation containing list of positions that are subject to irregular hours
Reference in the Employment agreement on granting additional paid leave

Disciplinary sanctions

Report on breach of discipline
Employee’s explanatory note or Act on refusal to give explanations
Employer’s order on the application of disciplinary sanctions (it is produced for the employee for his/her signing within 3 business days from the date of issue)
Act on refusal to be informed (if the employee refuses to be notified under signed acknowledgment)

Business trips

Documents confirming reasons for suspension from work
An order “On suspension from work on the grounds of…”

Suspension from work

Documents confirming reasons for suspension from work
An order “On suspension from work on the grounds of…”

Termination of employment agreement (dismissal)

On the employee’s part:

Employee’s notice
An order “On termination of employment agreement”
Employee’s signature in his personal record form T-2
Registration in the Book of record flow of employment record books and their inserts

Upon mutual agreement of the Parties:

An agreement of the parties on the termination of the employment agreement
An Order “On termination of the employment agreement”
Employee’s signature in his personal record form T-2
Registration in the Book of record flow of employment record books and their inserts

Expiration of employment agreement:

Notification of employee
An Order “On termination of employment agreement”
Employee’s signature in his personal record form T-2
Registration in the Book of record flow of employment record books and their inserts

Termination of employment agreement in case of reduction of staff

An Order “On reduction of staff”
New staffing schedule
Notification of Government Employment Service
Notification of employees
An Order “On termination of employment contract” for every employee
Employees’ signatures in their personal record forms T-2
Registrations in the Book of record flow of employment record books and their inserts

Why can you trust us?

1

We elicit weak points in the company on issues related to HR (payroll, taxes)
2

We work in a team: an HR, lawyer who specializes in labor law, an accountant calculating payroll, a tax consultant
3

We offer related services enabling broadening of the HR audit and achieving additional benefits

Stages of providing the HR audit service

Acquaintance

Filling in the questionnaire
Request for related information:
- Are the costs of sick leave payments recovered from the Social Insurance Fund?
- Are there resources for repayments?
- How often does reimbursement take place?
- Are there any labor disputes in the company with employees?
- Do you need a lawyer on labor disputes?

Evaluation

Evaluation of the scope of work based on the questionnaire

Approval

Approval of the cost of work is defined on the basis of the hourly rate of pay of our specialists

Audit

Conducting an HR audit
Preparing a report on the basis of the HR audit
Discussing the report and our recommendations for the restoration of HR accounting and designing forms for necessary or missing HR documents

Why is an HR audit important?

1
Financial risks
- The application of penalties to the Head of the company or organization. In accordance with article 5.27 of Administrative Offences Code violation of labour laws and labour protection laws shall entail the imposition of an administrative fine on officials in the amount of one thousand to five thousand roubles; upon legal entities - from thirty thousand to fifty thousand roubles or an administrative suspension of the activity for a term of up to ninety days.
- Loss of money because of overpay (average wage, taxes) or due to lack of knowledge about opportunity of reimbursement of expenses
2
Legal risks
- According to p. 2 art. 5.27 of Administrative Offences Code violating labour laws and labour protection by the official laws by a person who has been administratively penalized for a similar administrative offence before - shall entail disqualification for a term of from one year to three years.
- Occurrence of disputes with employees may entail court proceedings with a subsequent prosecutor’s inspection and labor inspectorate check.
3
Reputational risks
- n case he company has, for instance, no Internal Labor Rules and Regulations – the employee cannot be brought to responsibility for a breach of labor discipline, as he/she does not know the demands placed on him/her by the company
- In the event that there are no post profiles then there can arise difficulties with dismissals of the employee on the ground of his failure to fulfill his obligations, as it will be difficult to justify which obligations he failed to fulfill.
- Reputational risks could emerge in the event of the absence of HR documents, justifying any payments to the employee, as well as of wrong computation of average wage (labor disputes and conflict are likely to degenerate to court proceedings )

HR audit

What do we do in the framework of the service HR audit?

Assess

Elicit

Provide

What documents are subject to HR audit?

Employment

Transfer to another position

Salary modification

Vacations (annual paid, annual additional paid leave, unpaid vacation):

Maternity leave

One-time allowance in respect of a child’s birth

Childcare and parental leave

Overtime (including work on rest days and public holidays)

Irregular working hours

Disciplinary sanctions

Business trips

Suspension from work

Termination of employment agreement (dismissal)

Termination of employment agreement in case of reduction of staff

Why can you trust us?

We elicit weak points in the company on issues related to HR (payroll, taxes)

We work in a team: an HR, lawyer who specializes in labor law, an accountant calculating payroll, a tax consultant

We offer related services enabling broadening of the HR audit and achieving additional benefits

Stages of providing the HR audit service

Why is an HR audit important?

Financial risks

Legal risks

Reputational risks

Vacations (annual paid,
annual additional paid leave, unpaid vacation):