+91 98407 08181 hello@paalan.ai Chennai · Dubai · Singapore
IMC Group · Member Firm of Andersen Global
Request pricing
+91 98407 08181
hello@paalan.ai
Home Services Vendor Audit
OUR SERVICES

Vendor & contractor audit

Periodic, evidence-based audits of your contractors and service vendors, wages, PF, ESI, licences and records, so their non-compliance never becomes your liability.

Vendor Audit
Professional sign-offon every deliverable
PurposeProtect the principal employer
ChecksWages, PF, ESI, licences, records
FrequencyMonthly, quarterly or half-yearly
OutputGraded findings & closure tracking
QUICK ANSWER

What is a vendor compliance audit?

A vendor compliance audit is an independent check of whether your contractors and service vendors meet their labour-law obligations, minimum wages, timely wage payment, PF and ESI coverage and deposits, valid licences and statutory records. Because the principal employer is liable for contractor defaults, regular vendor audits are a key risk control.

OVERVIEW

How Paalan handles Vendor Audit

Security, housekeeping, facility, manpower and logistics vendors often employ hundreds of workers on your premises. Under the law, you are the principal employer, and you can be made to pay if they default on wages, PF or ESI.

Our vendor audits verify each contractor's statutory compliance against the law and your contract, grade every finding by risk, and track closure, giving procurement, HR and management a clear picture of vendor risk.

SCOPE OF SERVICES

What's included

Everything we take ownership of under Vendor Audit.

01

Wage compliance

Minimum wages, overtime, bonus and timely wage payment verified against records.

02

PF & ESI verification

Challans, returns and coverage of every deployed worker checked.

03

Licence validity

CLRA licence, registrations and their headcount limits verified.

04

Registers & records

Attendance, wage registers, wage slips and statutory registers reviewed.

05

Risk grading

Findings graded High, Medium or Low with an owner and closure date.

06

Audit reports

Vendor-wise audit reports and a consolidated management summary.

WHO NEEDS IT

Who needs Vendor Audit?

  • Principal employers with security, housekeeping or manpower vendors
  • Manufacturers with large contract workforces
  • Companies facing brand or customer social audits
  • Procurement teams onboarding new vendors
  • Boards and audit committees seeking assurance
Check what applies to you
KEY FEATURES

Why clients choose Paalan for Vendor Audit

Monthly, quarterly or half-yearly audit cycles
On-site or document-based audits
Vendor-wise compliance scorecards
Closure tracking for every finding
Supports onboarding checks for new vendors
Evidence file ready for inspections and audits
KEY DUE DATES

Vendor Audit compliance calendar

Typical statutory timelines. Exact dates vary by state and notification, we maintain the calendar for each of your locations.

ActivityFrequencyDue date
High-risk vendor auditMonthly or quarterlyAfter each wage period
Standard vendor auditHalf-yearlyScheduled cycle
New vendor onboarding checkOne-timeBefore deployment
RISK OF NON-COMPLIANCE

What happens if Vendor Audit is not managed well?

Joint liability

Unpaid contractor wages, PF or ESI can become the principal employer's liability.

Reputational damage

Labour violations in the supply chain surface in customer audits and the media.

Operational disruption

Disputes with contract workers can halt operations at short notice.

HOW IT WORKS

Our process

Step 1

Assess

We study your entities, locations, headcount and existing records to map every obligation that applies.

Step 2

Plan

A location-wise compliance calendar and responsibility matrix, agreed with your team.

Step 3

Execute

Registrations, registers, returns and filings handled on time, every time, reviewed by a professional.

Step 4

Report

Regular status reports and an evidence file ready for auditors, inspectors and management.

FAQS

Vendor Audit: frequently asked questions

Can't find your answer? Our specialists are a message away.

Pricing on request

Fees depend on your entities, locations and headcount. Share your requirement for a tailored proposal.

Request pricing
How often should vendors be audited?

High-headcount vendors are best checked monthly or quarterly; smaller vendors can be covered half-yearly. We recommend a cycle based on your risk profile.

Do you visit sites?

Yes. Audits can be on-site, document-based, or a combination, depending on your requirement and locations.

What do we receive?

A vendor-wise report with graded findings, a consolidated summary for management, and closure tracking until every finding is resolved.

What documents do vendors need to share?

Typically licences, attendance and wage registers, wage slips or bank statements, PF and ESI challans and returns, and worker lists, our checklist is shared upfront.

Can audits be done remotely?

Yes. Many checks are document-based; on-site visits are added for high-risk vendors and locations.

Do you score vendors?

Yes. Each vendor gets a compliance score and graded findings, so you can compare and act.

RELATED

Related services

All services

Need help with Vendor Audit?

Tell us about your organisation and a Paalan professional will send you a clear, tailored proposal, usually within one working day.

Chat with us