A human resources audit is an independent evaluation of an organisation's HR processes in terms of legal compliance, operational effectiveness and alignment with strategic objectives. In Türkiye, where labour lawsuits exceed one million annually, regular HR audits enable the proactive management of risks that may arise in areas such as job security, severance and notice pay, and overtime. An HR audit also forms the core arguments for the employer's defence in labour litigation.
Types of HR Audit
| Type | Scope | Frequency |
|---|---|---|
| Legal Compliance Audit | Labour Law, social security (SGK), KVKK framework | Annual |
| Process Audit | Implementation of HR policies | Annual or every two years |
| Performance Audit | HR KPIs, effectiveness analysis | Annual |
| Payroll Audit | Accuracy of payroll calculations | Quarterly |
| Personnel File Audit | Completeness of employee personnel files | Annual |
| OHS Compliance Audit | Compliance with OHS Law No. 6331 | Annual |
Stages of the HR Legal Compliance Audit
- Review of personnel files: For each employee, the employment contract, copy of ID, proof of residence, SGK employment entry notification, training records, leave ledger and performance records.
- Verification of working-time records: Clock-in and clock-out times, overtime approvals, weekly rest day records.
- Accuracy of payroll calculations: Minimum wage, social security deductions, income tax, overtime pay.
- Completeness of SGK declarations: Monthly premium and service declaration, employment entry and exit notifications.
- Review of job security procedures: Termination decisions with cause, processes for obtaining the employee's defence, performance evaluation documentation.
- Personnel data management under KVKK: Privacy notice, explicit consent, data retention periods.
- Verification of the equal treatment principle: Confirmation that there is no discrimination in pay, promotion or training opportunities.
- Assessment of union relations: Whether there is any finding of differential treatment of union members.
Most Common HR Compliance Risks
- Missing employment contract: Absence of a written contract for work lasting more than one month.
- Inadequate working-time records: Failure to track clock-in and clock-out times electronically or manually; in litigation, the employee's statement is given weight.
- Exceeding overtime limits: Exceeding the limits of 270 hours per year or 60 hours per week.
- Lack of a leave ledger: Failure to keep written records of annual leave taken.
- Absence of performance documentation: Lack of written evidence supporting the "valid reason" justification in job security lawsuits.
- Delays in SGK notifications: Failure to submit the employment entry notification before work begins (the most common error).
- Uncorrected payroll errors: Incorrect payrolls relating to past periods.
Payroll Audit in Detail
Beyond mathematical accuracy, the payroll audit covers the following checks:
- Correct application of the minimum wage (annual update by the Council of Ministers)
- Accuracy of social security deduction rates (employer and employee share calculated separately)
- Unemployment insurance deduction
- Income tax brackets and exemptions
- Stamp duty calculation
- Overtime premium (50%)
- Weekly rest day and public holiday premium
- Annual leave pay
- Severance and notice pay calculations
- Fringe benefits such as meal, transport and child allowances
A well-executed HR audit is a shield of defence. In any legal dispute that may arise with an employee, properly maintained records are the strongest argument.
Frequently Asked Questions
- How long does an HR audit take?
For a company with 50-100 employees, 3-5 days; for 500+ employees, 1-2 weeks. As it is carried out using sampling, the personnel files are not examined one by one but through statistical sampling.
- How far back can the SGK go?
The SGK has the authority to conduct retrospective inspections covering five years. If undeclared employment is identified, past premiums are calculated and collected together with interest. For this reason, a five-year records archive is an absolute requirement.
- Can an employee not covered by job security be dismissed?
There is no job security for workplaces with fewer than 30 employees or for employees with less than 6 months of seniority; however, the notice period and severance and notice pay are still payable. Even if the employer acts arbitrarily, compensation for unfair dismissal may still apply.
- What happens if HR policies and procedures are not in writing?
Legally, most policies are not mandatory; however, written policies are critical for proving valid reason in job security lawsuits. In the absence of a disciplinary regulation, the claimant's interpretation against the employer is strengthened.