The effective management of human resources programs and processes plays a crucial role in achieving the main goals of organizations. In this regard, it is essential for processes to align with legal requirements and contribute to the overall well-being and retention of the personnel.
HR operations may result in the following outcomes if not handled correctly:
HR auditing focuses on studying HR processes and programs within an organization, including understanding documentation, reviewing current processes, and engaging in discussions with employees.
The key areas of attention in the HR auditing process include:
Loialte HR helps in conducting a thorough analysis of the risks and implementing preventive measures on strong and vulnerable areas promptly. As practice shows, the resources invested in HR auditing can provide significant benefits to the company by improving the effectiveness of the identified processes, contributing to the overall well-being of the organization.
Loialte HR can assist you in becoming competitive and responsive in the market, ensuring a reliable and responsible employer.
An HR audit is a comprehensive review of a company’s personnel documentation, payroll practices, and labor policies to ensure they align with the latest national legislation. While a “voluntary” HR audit is not a standalone legal requirement, the Labor Code and the Law “On Accounting” mandate that companies maintain 100% accurate labor records, which can be verified at any time by the State Labor Inspection. Practically, in 2026, an HR audit serves as a “pre-inspection” tool to identify discrepancies in the Unified National Labor System (my.mehnat.uz) before they trigger an automated government alert. For Joint-Stock Companies (JSC) and large taxpayers, an annual audit of financial statements—which includes payroll and social tax verification—is a strict legal requirement. Conducted regularly, these audits prevent administrative fines and ensure the company remains in the “Green” (low-risk) zone of the tax authorities.
The most critical risks identified during an HR audit in 2026 include the misclassification of employees as “B2B” contractors, missing electronic registration of leave, and inconsistencies in overtime calculations. Under the Code of Administrative Responsibility, the unauthorized conversion of an employment relationship into a civil law contract (B2B) can lead to the labor inspector reclassifying the contract by administrative decision, resulting in immediate back-tax liabilities. Legally, the audit also flags “guilty” termination procedures that lack sufficient documentation, which often leads to expensive court-ordered reinstatements. Practically, auditors check if your 12% Social Tax payments match the digital labor books to avoid “Tax Gap” penalties. Risk mitigation through an audit is essential for protecting the company’s “Charter Capital” and maintaining its “IT Park” or investment incentives.
The January 2026 amendments to the Labor Code introduced new concepts such as “remote work” (Article 3) and “workers with family responsibilities,” which must now be reflected in all internal HR policies and audits. Legally, any extension of a working period must now be formalized by an official order rather than a new fixed-term contract, a point that auditors look for specifically to prevent “contract chaining” violations. The update also mandates that fathers be granted 14 days of paid leave, which must be correctly reflected in the payroll and the my.mehnat.uz portal. Practically, an HR audit now must include a “Digital Integrity Check” to ensure that the physical archives perfectly mirror the data in the government’s centralized labor database. This modernization means that traditional “paper-only” audits are no longer sufficient to ensure full legal compliance in 2026.
Penalties in 2026 vary based on the severity of the violation, ranging from fines of 10–50 Base Calculation Units (BHM) for administrative errors to criminal liability for illegal dismissals or unpaid wages. According to the Code of Administrative Responsibility, refusing to employ vulnerable categories (like pregnant women or persons with disabilities) can result in fines of up to 500 BHM. Practically, starting in October 2026, a new “50% discount” mechanism allows businesses to pay only half the fine if settled within 30 days, encouraging voluntary compliance. However, for repeated violations or failure to register employees on the national portal, the government can suspend the company’s VAT certificate or block its bank accounts. An HR audit identifies these “red flags” early, allowing the company to rectify errors before an official inspector issues a formal decision.
While an HR audit’s primary goal is compliance, it also identifies legal opportunities for tax optimization, such as applying for the 1% Social Tax rate available for specific hiring incentives in 2026. Under the Tax Code, employers who hire low-income employees and pay them at least twice the minimum wage can qualify for reduced rates through January 2028. Legally, the audit ensures that all documentation required to claim these incentives—such as the employee’s social status verification—is correctly archived and registered. Practically, auditors also look for “non-taxable” benefits and allowances that can be structured within the labor contract to reduce the overall payroll tax wedge. This dual approach ensures that the company is not only “safe” from a legal perspective but also “efficient” in its human capital spending.
Phone
Phone
Phone
Uzbekistan, Tashkent
United Arab Emirates, Dubai
Phone
Phone
Phone
Uzbekistan, Tashkent
United Arab Emirates, Dubai
Developed By Web Features 2026 All Rights Reserved
