Periodic audit of statutory compliances is required to find flaws in the system, which can lead to prosecution and fines. The audit comprises of mainly two sections, the first one concern with the statutory compliances of the establishment itself and the second relates to the statutory compliances followed by its contractors. Under a large number of labour statutes the principal employer is held liable for the lapses made by the contractors, therefore for an establishment which engages contract workers the audit of the labour practices of its contractors also assumes significance. The Labour Law Compliance due diligence/Audit includes complete verification of all statutory records to be maintained under applicable labour statutes including relevant Registers, License, Registration Certificates, Amendments in License & Registration Certificates, Renewal of License and Registration Certificates, verification of Committee Reports, Verification of Remitted challan copies, Filing of Statutory Returns to various authorities on time, Exhibits of requisite notices/abstracts of the Act on Notice Boards.The said exercise is done on the spot. After conducting Statutory Compliance Audit a detailed Action Plan/suggestion for improvement and corrective measures shall be provided. The said Action plan shall be in accordance with the recent amendments and notifications in the applicable statutes and the appropriate government as defined thereunder.