Staying on top of HR compliance can sometimes feel like a complicated juggling act.
As a business owner or HR manager in India, you need a systematic approach to ensure nothing slips under your radar. But don’t worry – Bonitas has your back! Here’s your comprehensive monthly checklist to keep everything running smoothly. 👍
Why a Monthly Checklist?
Monthly reviews are the sweet spot for HR compliance – frequent enough to catch issues early, but not so frequent that they become overwhelming. This checklist will help you:
- Stay organized and systematic
- Prevent compliance gaps
- Maintain consistent documentation
- Reduce last-minute stress
Start-of-the-Month Tasks
1. Payroll Compliance
- Review salary structures for minimum wage compliance
- Verify overtime calculations from the previous month
- Check for any pending variable pay or incentives
- Update any salary revisions effective from this month
- Verify TDS calculations and deductions
2. Attendance and Leave Management
- Review previous month’s attendance records
- Update leave balances
- Check for any unauthorized absences
- Verify work hour compliance
- Update remote work records
3. New Hire Documentation
- Complete documentation for new joiners
- Verify offer letter acknowledgments
- Ensure all required KYC documents are collected
- Initialise statutory registrations (PF, ESI)
- Complete induction documentation
Mid-Month Review Points
4. Statutory Compliance
- Prepare monthly PF/ESI calculations
- Review professional tax requirements
- Check labor welfare fund obligations
- Verify GST on consultancy services (if applicable)
- Update minimum wage changes (if any)
5. Employee Relations
- Review any pending grievances
- Check POSH committee status
- Update employee engagement activities
- Review performance feedback system
- Check training completion records
6. Documentation
- Update employee database
- Review digital documentation system
- Back up important HR records
- Update policy documents (if needed)
- Maintain compliance certificates
Month-End Must-Dos
7. Payroll Processing
- Final salary calculations
- Verify all deductions
- Process reimbursements
- Generate salary slips
- Prepare bank transfer documents
8. Compliance Reporting
- Prepare statutory compliance reports
- Review any upcoming filing deadlines
- Update compliance calendars
- Document any compliance changes
- Prepare monthly compliance summary
9. Exit Processing (If Applicable)
- Complete exit documentation
- Process full and final settlements
- Update PF/ESI records
- Collect company assets
- Complete exit interviews
Quarterly Additions to Your Monthly Checklist
START of Quarter (January/April/July/October)
- Prepare quarterly returns
- Review quarterly compliance requirements
- Update employee quarterly benefits
- Review quarterly budget allocation
End of Quarter (March/June/September/December)
- Prepare for statutory audits
- Review quarterly performance data
- Update compliance training records
- Plan next quarter’s compliance calendar
Best Practices for Using This Checklist
1. Customise It
- Add industry-specific requirements
- Include company-specific policies
- Adjust timelines to your business cycle
- Add any relevant stakeholder reviews
2. Document Everything!
- Keep digital records of completed tasks
- Maintain audit trails
- Document any exceptions
- Store supporting evidence
3. Review & Update
- Monthly review of checklist effectiveness
- Update based on regulatory changes
- Add new requirements as needed
- Remove obsolete items
Make the Checklist Work for You
Useful Tips
- Assign Responsibilities
- Clearly define who handles each task
- Set up backup responsibilities
- Establish review mechanisms
- Create accountability systems
- Set Up Reminders
- Use digital calendar alerts
- Set up email reminders
- Create task management systems
- Establish review meetings
- Monitor and Improve
- Track completion rates
- Identify bottlenecks
- Gather team feedback
- Make periodic adjustments
Handling Exceptions
When Things Don’t Go as Planned
- Document the exception
- Assess the impact
- Create correction plan
- Implement preventive measures
Keeping Your Checklist Current
Regular Updates are Needed For:
- New regulations
- Company policy changes
- Process improvements
- Technology updates
The Bottom Line
A monthly HR compliance checklist isn’t just about ticking boxes – it’s about setting up a systematic approach to maintain your company’s HR health. Use this checklist as your foundation, customize it to your needs, and make it a living document that evolves with your business.
Need help implementing or customizing this checklist for your business? Bonitas Consultancy can help you create a compliance system that works for your specific needs. Contact us for personalised guidance.
