Completion of Editing for the Publication of the HR and Labor Audit Manual: Introduction to the Necessity of Audits, Overview of 16 Audit Areas, and Introduction of the HR and Labor Compliance Certification System
Completion of Editing for the Publication of the HR and Labor Audit Manual: Introduction to the Necessity of Audits, Overview of 16 Audit Areas, and Introduction of the HR and Labor Compliance Certification System
Foreword
In general, an audit refers to the process of examining the validity of a subject based on legal provisions or objective and efficient established standards, assessing whether the results are appropriate. In the past, corporate audits primarily functioned as a post-investigative tool for detecting irregularities and fraud. However, in today’s leading companies, audits are quickly taking on a preventive function, ensuring that corporate management and employee work performance do not deviate in the wrong direction. This shift emphasizes consulting-based audits that focus on preemptive measures rather than retrospective detection. Forward-thinking companies are expanding the scope of audits beyond traditional financial records and results-based evaluations to include risk management, operational process effectiveness, compliance with labor laws, and efficient human resource management.
This book is designed to help companies independently assess their compliance with key human resource management topics, including not only the functions and processes of audits in HR and labor but also essential areas such as hiring, employment contracts, work rules, wage systems, working hours, maternity protection systems, prevention of workplace harassment and sexual harassment, non-discrimination, legal subcontracting operations, disciplinary actions and dismissal, foreign worker management, labor-management councils, employment insurance and industrial accident compensation insurance, industrial safety and compliance with the Serious Accidents Punishment Act, protection of personal data, and adherence to the Improper Solicitation and Graft Act.
Herein, the authors aim to assist companies in evaluating whether their HR and labor management systems align with labor laws and regulations. Furthermore, the book serves as a tool for assessing and improving the effectiveness of human resource management and organizational operations. Through this, companies can better prepare for regular and ad-hoc labor inspections conducted by the Ministry of Employment and Labor.
This book also aims to present the development direction of HR and labor audits as a certification system in the field of HR and labor. With the strengthening of labor laws, companies are increasingly required to ensure not only their own compliance with labor regulations but also the compliance of their business partners. As a result, the need for a system that objectively demonstrates a company's adherence to labor laws has emerged. In practice, the "HR and Labor Compliance Certification System" is now widely utilized. By conducting HR and labor audits, companies can obtain certification for compliance, which in turn enhances trust with business partners.
This first edition of HR and Labor Law Audits serves as the initial step in preparing for HR and labor audits, enabling companies to independently analyze
and improve their HR management practices in line with labor laws. In the next stages, as corporate management environments continue to evolve, this book will be further expanded to support companies in evaluating and enhancing the effectiveness of their HR management and organizational operations, ensuring their sustainable growth and development.
Before working as labor attorneys, the two of us had careers in management, auditing, and HR at our previous companies. While writing this book, we truly experienced and resonated with the African proverb: "If you want to go fast, go alone. If you want to go far, go together." It was a valuable opportunity to personally witness how combining our individual experiences and expertise led to far greater achievements than working alone. As we developed the topics covered in this book, we also took time to refresh our spirits by walking together through the beautiful trails of Seolleung Park, experiencing the changing seasons of spring, summer, autumn, and winter. During these walks, we shared our hopes for continuing to work together in contributing to the advancement of HR and labor management in Korea.
While this book strives to provide reliable information based on real-life cases, experiences, extensive references, and supporting materials, we acknowledge that there may still be areas for improvement. The first steps into new fields are always challenging and imperfect. We humbly welcome constructive feedback and suggestions to further enhance this work. Our hope is that this book will be remembered as the first step in the field of HR and labor audits in Korea, and that readers will find in its pages the practical guidance and valuable insights they are looking for.
Finally, we would like to express our deepest gratitude to everyone who contributed to the completion of this book. We sincerely hope that it serves as a useful guide for all our readers.
Thank you.
April 1, 2025
Kyungho Ahn and Bongsoo Jung
Chapter 1: The Necessity for HR & Labor Law Audits 6
Chapter 2: Scope and Key Inspection Points of HR & Labor Law Audits 8
Chapter 3: The HR & Labor Law Audit Process 13
Chapter 4: Key Factors for a Successful HR & Labor Law Audit 17
Chapter 1: Auditing the Hiring Process 21
Chapter 2: Auditing Employment Contracts 28
Chapter 3: Auditing Rules of Employment 34
Chapter 4: Auditing Wage Payment 40
Chapter 5: Auditing Compliance with Working Hour Regulations 55
Chapter 6: Auditing Maternity Protection Measures 68
Chapter 7: Auditing Efforts to Prevent Workplace Harassmentand Sexual Harassment 78
Chapter 8: Auditing Gender Equality in Employment and Non-Discrimination Against Non-Regular Workers 87
Chapter 12: Auditing the Establishment and Operation of Labor-Management Councils 129
Chapter 13: Auditing Compliance with Employment and Industrial Accident Insurance Regulations 135
Chapter 14: Auditing Compliance with the Occupational Safety and Health Act & the Serious Accidents Punishment Act 150
Chapter 15: Auditing Compliance with Obligation to Protect Personal Data 174
Chapter 16: Auditing Compliance with the Improper Solicitation and Graft Act 179
Chapter 1: Utilization of HR & Labor Law Audits 187
Chapter 2: Conducting a Self-Assessed HR & Labor Law Audit 189
Chapter 3: The Compliance Certification System for HR & Labor Law Audits 191
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