DUE DILIGENCE

Employment Audit

We carry out an exhaustive analysis of the state of the company to determine the legal-employment situation.

Employment Due Diligence

At ETL ILIA, we offer a employment audit service. We carry out an exhaustive analysis of the state of the company to determine the legal-employment situation. Knowing its actual situation is essential to determine whether it is a good acquisition or whether improvements need to be made.

We have been part of ETL GLOBAL since 2016, one of the most prestigious consulting firms in Europe and only associated with first-rate partners.

Experts in Employment Due Diligence.

We take care of the entire process for your peace of mind.

What does our service consist of?

1. Previous analysis

This first step allows us to know the status of the company’s workforce. We focus on determining aspects such as the general organisation chart, succession mechanisms, governing bodies, legal formula or the personnel structure, and the forms of contracting that prevail in the organisation.

2. Comparison (historical figures)

This comparison offers us basic information on the performance of the business over time. Thus, we check its evolution, what events occurred in the past and what trend the company follows over time.

3. Contract / agreement analysis

This step aims to determine the different contracts that affect personnel regardless of level. We assess whether the staff is hired correctly about their services and whether the collective agreement that affects the other workers is complied with.

4. Determination of employment contingencies

At this point, we determine the employment contingencies that may affect the company. We assess what risks workers are exposed to or possible injuries they may suffer. Thus, we ensure that the company follows the General Social Security Law and other regulations.

5. Valuation of employment liabilities

Calculating the debts generated by the workers is a good accounting practice since it provides insight into the company’s actual state and is a requirement for, for example, going public.

6. Review TGSS procedures

We review the company’s procedure to be up to date with the declarations of wages to Social Security.

7. Study equality plans

The goal of these plans is to guarantee a fair remuneration of workers regardless of their gender. This way complies with Real Decreto-Ley 6/2019, of required measures to ensure equal treatment and opportunities between women and men in the workplace, and other regulations.

8. Detail of the last financial year

Through your verification, we identify any problems that the company may be experiencing.

9. Final report (audit) with conclusions

After analysing all the data collected, we issue conclusions with observations and corrections to carry out. Each one is based on the information provided and is correctly argued. Thus, it will be known unequivocally if the company complies with employment and Social Security obligations.

Due Diligence or Audit

We take care of the entire process, from the preliminary analysis to the delivery of the report with the conclusions.

1. Employment Audit

An employment audit is composed of the steps mentioned and is carried out by specialised professionals. We carry out these tasks with meticulous planning, which allows us to understand the business, the sector in which it operates, the agreements to which the workers are subject and the rules of social order that the company follows, among other essential aspects.

2. What is an Employment Audit?

It is a procedure that allows companies to verify that they comply with employment and Social Security regulations. Auditing this data offers an additional layer of security and reliability to both institutions and investors or workers. Despite this, there is no legal obligation to carry it out. It is a voluntary act, which brings numerous benefits.

With a salary audit, we check the status of the payments to the workers, if the equality between both sexes is fulfilled and other factors that affect a solid equality plan. Thanks to the analyses we carry out, your company will not have to fear administrative sanctions and responsibilities for non-compliance with regulations.

3. The benefits of an Employment Audit

A socio-employment audit has one main benefit: verifying that current legislation is being complied with and updated Social Security. In both cases, the company makes sure that it fulfils its obligations and that these comply with the requirements of the relevant regulatory body, something important in the case of carrying out employment due diligence.

The possible risks to which the company is exposed in employment matters are determined. Perhaps you are incurring irregularities due to an error, such as an erroneous payment related to Social Security contributions. Detecting the failure, its origin and proposing the appropriate corrective measures is something that only an independent auditor, specialised in HR auditing, can carry out with success and impartiality.

The company’s image is improved in the social sphere, especially as a quality contracting brand. It is made clear that the organisation identifies itself with a series of values: seriousness, commitment to legislation, the equitable treatment of employees and seriousness in its relationships with other institutions. This optimistic vision impacts the business and consumer confidence, which favours the due diligence of human resources.

Complying with this section is essential at present since a significant weight is given to the disparity of wages for reasons of sex. Therefore, companies must take care of and develop effective plans. On the other hand, the salary audit of the equality plan is essential to comply with laws such as Ley Orgánica 3/2007 or the Workers’ Statute itself.

4. Conclusions

In short, an employment audit is a procedure that helps companies know their status in detail and that, as in other audits, it allows them to thrive. At ETL ILIA, we work to increase the well-being of companies, their workers and to maintain an adequate balance in it. You will receive high quality and reliable service carried out by experienced auditors.