Understand the importance of labor audit and compliance

Labor audit is a procedure for reviewing and analyzing labor practices in the company. The main purpose of the audit is to ensure that the company is in compliance with labor legislation, collective bargaining agreements, and applicable regulations.

In the audit, all labor documentation is reviewed, including:

  • employment agreements;
  • punch in;
  • overtime bank or working hours compensation agreements;
  • paid benefits;
  • health and safety standards;
  • collective bargaining agreements;
  • employee registrations;

Through labor audit, it is possible to identify possible irregularities and labor liabilities, allowing the company to adopt corrective measures once the risks have been mapped out.

In addition, the audit is an important tool to identify ways to reduce labor litigation, improve human resource management practices, and bring greater legal security to the company.

After the labor audit, the company will also be able to adopt labor compliance measures, which aim at better adapting to current legislation and court precedents.

Labor compliance is the set of practices and policies adopted to ensure that the company complies with all applicable labor laws, as well as with governmental rules and regulations, in addition to collective bargaining agreements.

The focus of labor compliance is to ensure that the company meets legal obligations and avoids labor violations, which involves the development and monitoring of policies on wages and benefits, career plans, health standards, and the prevention of harassment and discrimination, among others.

Thus, with the adoption of good labor practices – through audit and compliance – the company starts to promote a safe environment for its employees and minimizes the risks of labor penalties and litigation.

If you have questions about this, contact our experts.

Written by Daniel Rangel

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