Employer & Vendor's Compliance Audit
Ensure Complete Compliance Across Your Workforce and Vendors
Managing compliance across vendors is critical for principal employers to avoid legal risks, penalties, and reputational damage. MSure helps organisations conduct comprehensive audits across all vendors, contractors, and outsourced operations — ensuring full adherence to labour laws, statutory obligations, and contractual requirements.
What We Offer
We provide comprehensive compliance audit services for principal employers and vendors, including thorough reviews of agreements, employment records, and statutory compliance. Our team ensures HR and payroll processes adhere fully to labour laws, maintains audit-ready documentation, identifies compliance gaps, and recommends corrective actions.
Types of Audits
Factories, Warehouses & Commercial Establishments
Our audits cover health, safety, hazardous processes, employee welfare, working hours, employment of young persons, and annual leave with wages — identifying gaps and implementing corrective measures for full legal compliance.
Contractor & Vendor Compliance Management
We conduct a detailed audit for principal employers and contractors to verify licensing, insurance coverage, safety protocols, and adherence to contractual obligations — preventing contract workers from becoming legal or operational liabilities.
Employer Compliance Audit
Our audits ensure employers meet all statutory and regulatory obligations related to HR, payroll, and labour laws. Through both offline and online audits, we help organisations identify gaps and fulfill their responsibilities.
Frequently Asked Questions
Why is a vendor compliance audit important for a principal employer?
As a principal employer, you are legally responsible for ensuring that your contractors and vendors comply with applicable labour laws. If a contractor fails to meet statutory obligations — such as paying minimum wages or EPF contributions — the principal employer can be held jointly liable. Regular vendor compliance audits protect your organisation from such liabilities.
What is the CLRA Act and how does it impact principal employers?
The Contract Labour (Regulation and Abolition) Act, 1970 (CLRA) regulates the employment of contract labour and places obligations on both principal employers and contractors. Under CLRA, the principal employer must obtain a registration certificate, ensure the contractor holds a valid licence, and take responsibility for workers’ welfare if the contractor defaults.
How frequently should a compliance audit be conducted?
For best results and legal protection, compliance audits should be conducted monthly for high-risk or high-volume contract labour engagements, and at minimum quarterly or annually for lower-risk operations. MSure tailors the audit frequency to your specific risk profile and operational requirements.
What documents are reviewed during a vendor compliance audit?
A vendor compliance audit typically reviews CLRA licences, EPF and ESI challans and returns, minimum wage registers, attendance and wage registers, Form 16 or salary slips, safety and insurance certificates, and contractual agreements. MSure’s 73-point audit framework ensures no area is overlooked.
Can MSure conduct remote or online compliance audits?
Yes. MSure offers both on-site and online compliance audits. For remote audits, vendors are required to submit digital copies of compliance documents, which are thoroughly reviewed by our experts. This is particularly useful for organisations with vendors spread across multiple locations.
What happens if a compliance gap is found during the audit?
When a compliance gap is identified, MSure prepares a detailed gap report with specific findings, risk assessment, and actionable recommendations. We work closely with your team and the concerned vendor to implement corrective measures within defined timelines, ensuring the issue is resolved before it escalates.