HR EDF audit: helping a company identify risks and confirm its processes are correct

HR electronic document flow (HR EDF) has become the standard for a modern company, but implementing it is only the first step. Even if the system works, there is always a risk of hidden errors: documents are signed late, processes do not run as the regulations prescribe, and violations may come to light during an inspection. This leads to fines, employee dissatisfaction and inefficient work.

One of our clients took the matter seriously and ran an HR EDF audit to make sure everything was set up correctly. The details are in this case study.

The task: review the HR EDF system for compliance with legislation and business processes

The management of KT&G's Russian division wanted independent confirmation that the electronic document flow complied with legislation and that the HR EDF system reflected the real business processes.

Following a tender the client chose UCMS Group.

The process: deep analysis, a structured approach, real solutions

1. Understanding the documents: how everything should work

As the first stage we studied how HR electronic document flow had been planned at the company when it was implemented.

• How the main HR processes are formalised: hiring, dismissal, transfers, vacations, business trips, overtime, and work on weekends and public holidays. It was important to understand which steps were recorded in the regulations and whether that complied with the law.
• How correctly the documentation related to the HR EDF implementation had been prepared: we studied the HR EDF Policy, the instructions for working with the system and the local regulations that set out the HR processes.
• Whether there were discrepancies between the documents: sometimes companies amend one document but forget to update the related regulations. We checked whether everything was consistent.

The purpose of this stage was to understand how HR EDF should work according to the company's ideal view. The next step was to check how it actually works.

2. Conducting interviews: how everything really works

After studying the documents we interviewed HR specialists, department heads and employees who work with HR EDF. The aim was to find out how the processes look in reality and whether they match what the regulations describe.

Examples of the questions we were looking to answer:

• How is hiring formalised? Does the employee sign all the documents on their first working day?
• How are business trips recorded? Does it happen that the employee has already left and the documents are signed only afterwards?
• How and when are orders signed? Are all documents really signed electronically on time?
• Do all employees use HR EDF, or does someone still submit applications and document requests on paper?

This format of review made it possible to see non-obvious problems that are hard to identify by analysing documents alone.

3. Comparing reality with legislation

The fact that a company's employees are used to working in a certain way does not always mean the process is legally correct. So the final stage was to check the actual processes against the Labor Code and related legal requirements.

This stage made it possible to identify potential risks and determine which points needed work: adjustments to the regulations, additional employee training or changes to the HR EDF system itself.

What mistakes occur when moving to HR EDF

Some violations relate to the organisation of internal processes, system settings or shortcomings in the documentation. They do not block HR EDF, but they increase the load on HR, hinder document control and can create problems during inspections. The main thing is to find them in time and make corrections.

For example, audits often reveal the following mistakes:

• Incorrect or outdated local regulations: HR EDF works, but the regulations contain no clear rules for signing electronic documents. The problem is solved by updating the local regulations.
• Employees still use paper documents: formally the process has moved to HR EDF, but in practice employees still submit vacation applications or document requests on paper. To fix this, training and a control system are needed.

Some violations cannot be remedied: if the error has already been recorded, a fine cannot be avoided. In such cases the audit helps prevent the mistake from recurring.

For example, audits often reveal the following mistakes:

• Documents signed late. If the employment contract is formalised later than the employee actually started work, the company faces a fine of up to 100,000 rubles.
• Incorrect recording of overtime. If the employer has not formalised the employee's consent to overtime, that is a violation. Even if the overtime has been paid but not formalised, the company can be fined up to 50,000 rubles and required to pay compensation.
• Violation in handling personal data. If employee documents were transferred through insecure channels or stored without proper protection, a fine of up to 300,000 rubles cannot be avoided, even if the company corrects the situation after the audit.

We help companies not only identify risks but also configure the system so that everything works correctly. Read more about the processes and solutions in the sectionHR electronic document flow.

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