Employment Law / HR Compliance Audit

Employment & HR Compliance Audit

An independent audit of employment law compliance: Employment Act coverage, contract and entitlement documentation, termination and dismissal process quality, and workplace policy gaps, ending in a plan a board can act on.

Employment Act coverage checked against the 2022 amendments Termination and dismissal process tested against just cause and excuse Workplace policy reviewed, including Anti-Sexual Harassment Act duties
Overview

Employment & HR Compliance Audit

What it is

An independent audit of an organisation's employment law compliance: Employment Act 1955 coverage and application, contract of service and entitlement documentation, termination and dismissal process compliance, and workplace policy review.

Why organisations need it

The Employment Act 1955 was amended in 2022 to cover a much wider range of employees than before, and many organisations have not revisited their contracts, entitlements and policies since. Termination and dismissal is the area that costs the most when it goes wrong: a dismissal without just cause or excuse, or a domestic inquiry that will not survive scrutiny, is usually only discovered at the Industrial Court. An audit finds the gap before a claim does.

Key features

What the engagement covers

Employment Act coverage review

Contract of service classification checked against the Act's current, wider coverage following the 2022 amendments.

Entitlement compliance review

Overtime, rest day and leave entitlement calculation and record-keeping checked against statutory minimums.

Termination and dismissal process review

Process quality against just cause or excuse, and domestic inquiry documentation tested for whether it would survive an Industrial Court claim.

Workplace policy review

Core HR policies reviewed, including Anti-Sexual Harassment Act 2022 obligations and the complaint mechanism required under it.

Contract documentation review

Contracts of service checked for required terms and consistency with actual practice.

Remediation plan

Findings ranked by exposure, with owners and target dates.

Business value

What the business gets out of it

Finds the gap before a claim does

The same issues an Industrial Court claim or a labour inspection would surface, found and fixed first.

Covers the 2022 amendments

Checked against the Act's current, wider coverage, not the pre-amendment version many policies were written for.

Tests dismissal process, not just the letter

Domestic inquiry quality and documentation reviewed, since that is what gets tested in a claim.

Independent

A review, not a referral to an HR outsourcing retainer.

Board-ready reporting

A summary senior management can act on directly.

How it works

How the engagement runs

01

Scoping

Workforce categories and existing HR documentation.

02

Document review

Contracts, entitlement records and policies against the Act.

03

Process review

Recent termination and dismissal cases, where available, reviewed for process quality.

04

Interviews

HR and relevant managers on how policy is applied in practice.

05

Report

Findings, remediation plan and a management summary.

Deliverables

What you receive

Compliance audit report

Findings ranked by exposure, with evidence.

Entitlement gap list

Specific calculation or record-keeping issues found.

Termination process findings

Process and documentation quality against just cause and excuse.

Policy gap list

Including Anti-Sexual Harassment Act compliance.

Remediation plan

Owners, actions and target dates.

Who it is for

Who this is built for

Industries

SMEsMid-marketLarge enterpriseGroup structures

Company sizes

Employers with Malaysian staff across any sector

Departments

HRLegalComplianceSenior management
Why Orbix

Why organisations choose Orbix

A governance approach, not a tool sale

We do not resell products, so nothing here is shaped by a vendor margin. The recommendation is whatever your risk and your budget actually justify, including telling you that you do not need the engagement yet.

Recommendations you can actually implement

Findings come with a sequence, an owner and a realistic effort estimate, sized to the team you have rather than the team a framework assumes. A report that cannot be acted on is an expense, not a control.

Consultants who have sat on your side of the table

Our people have carried the obligation internally, not only audited it. That shows up in what we consider proportionate, and in how much documentation we think you genuinely need.

Built for the Malaysian operating context

Work is grounded in Malaysian law and regulator expectation, from the PDPA and the Cyber Security Act 2024 to Bursa, BNM and SC requirements, rather than translated from a European or American template.

HRD Corp expertise where it applies

Where an engagement includes training, the training component is structured to be HRD Corp SBL-Khas claimable, which changes what the programme costs you in practice.

Questions

Questions we get asked

Do you handle an active dismissal dispute for us?

No. The audit reviews process and documentation quality, not individual case representation. We can recommend where to seek that separately.

Does this cover the 2022 Employment Act amendments?

Yes, that is a specific focus, since many organisations have not revisited their contracts and policies since the amendments took effect.

Do you review our Anti-Sexual Harassment Act compliance?

Yes, as part of the workplace policy review, including whether the required complaint mechanism is actually in place and working.

Can this cover a specific recent termination we are worried about?

The audit can include a focused review of a specific case alongside the general compliance review, scoped separately.

How long does this take?

Typically two to four weeks, depending on workforce size and the number of policies and records to review.