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HR Due Diligence Audit
HR Due Diligence Audit
Uncover Workforce Risks and Compliance Gaps Before Strategic Business Decisions
At Pragnaa, we deliver comprehensive HR due diligence audits to assess your organization’s labour compliance, payroll accuracy, and statutory obligations. Whether you are planning a merger, acquisition, investment, or operational restructuring, our expert consultancy provides detailed insights to help you make informed decisions and mitigate risk.
Our Core Offerings
Establishment Compliance Audit
In-depth review of compliance with applicable establishment laws, registration requirements, and statutory obligations for offices and non-manufacturing premises.
Factory Compliance Audit
Comprehensive assessment of factory operations under relevant safety, health, welfare, and labour regulations, including licensing and operational compliance.
Contract Labour Compliance Audit
Evaluation of contractor management practices, principal employer obligations, licensing, documentation, and adherence to contract labour regulations.
Payroll Audit
Detailed verification of payroll processing, salary structures, statutory deductions, allowances, loans, advances, and compliance with wage payment laws.
Statutory Registers & Documentation Reviewe
Examination of mandatory records such as attendance registers, wage registers, leave records, overtime documentation, and statutory returns.
Risk Factor Assessment & Compliance Gap Analysis
Identification of non-compliance areas with clear risk categorization and actionable recommendations for remediation.
Pre-Transaction Due Diligence
Comprehensive audit services for organizations undergoing mergers, acquisitions, fundraising, or joint ventures to assess labour and HR compliance risks
Why HR Due Diligence Matters
Mergers, acquisitions, and investment decisions require a clear understanding of workforce compliance and potential liabilities.
Non-compliance with labour laws can result in penalties, legal disputes, reputational damage, and deal complications.
Systematic audits provide transparency, identify hidden risks, and protect stakeholders from post-transaction surprises.
Accurate payroll and statutory compliance audits ensure operational integrity and safeguard your business from regulatory exposure.
Who Should Consider This Service
Organizations planning mergers, acquisitions, divestitures, or investment transactions requiring workforce due diligence.
Businesses seeking to assess compliance health across establishment, factory, or contract labour operations.
Companies facing regulatory audits, inspections, or litigation and needing comprehensive compliance verification.
Organizations expanding operations, opening new facilities, or restructuring workforce arrangements.
Why Choose Pragnaa
Specialized HR Due Diligence Experties
We focus exclusively on labour compliance, payroll accuracy, statutory obligations, and workforce risk assessment.
Comprehensive & Integrated Audits
From establishment and factory audits to contract labour and payroll verification — all conducted with precision and thoroughness.
Independent Third Party Assessment
We provide objective, unbiased audit findings based on site inspections, document verification, and discussions with facility personnel.
Detailed Risk Reporting
We provide comprehensive audit reports with clear non-compliance findings, risk categorization, and actionable remediation plans
Pre-Transaction & Post-Transaction Support
Our services extend beyond audit delivery to include ongoing advisory and remediation assistance for identified gaps.
Key Compliance Laws & Regulations Covered
Our HR due diligence audits encompass all central and state-level labour and statutory laws, including but not limited to: wage payment and minimum wage laws, provident fund and social security regulations, gratuity and bonus laws, contract labour and migrant worker regulations, maternity benefits and equal remuneration laws, workplace safety and harassment prevention requirements, factory and establishment registration laws, and tax on profession and labour welfare fund obligations.
Frequently Asked Questions (FAQs)
The audit covers establishment compliance, factory compliance, contract labour compliance, payroll accuracy, statutory registers, and risk assessment based on applicable labour laws.
The duration depends on the size and complexity of the organization, typically ranging from a few days to several weeks.
Yes, we conduct pan-India audits and provide consolidated reports for organizations with multiple facilities.
You will receive a detailed non-compliance report, risk categorization, statutory register verification findings, and actionable recommendations for remediation.
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