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HR Outsourcing Buyer’s Checklist (2026)

Last Updated on June 27, 2026 by

What to ask any HR vendor before you sign – 2026 edition

*By HRTailor – the online HR department for startups & SMEs*

Use this before you commit to any HR outsourcing / payroll / compliance provider. If a vendor

can’t answer these clearly, keep looking.


1. Scope & ownership

  • Do I get one named HR Manager, or a rotating support desk?
  • Who is my point of contact, and what are their response times (SLA)?
  • Is the scope end-to-end (setup + monthly ops + compliance), or only payroll?
  • What is explicitly NOT included? (Get it in writing.)
  • Who owns my data and documents if I leave? How is handover done?

2. Pricing transparency

  • Is pricing fixed and published, or “custom quote” (a red flag for SMEs)?
  • Are there setup fees, per-employee fees, or per-payslip charges?
  • What triggers a price increase (headcount bands, add-ons)?
  • Are statutory filings included, or billed per challan?
  • Minimum contract term and exit notice period?

3. Statutory compliance (India, 2026)

  • Do they handle PF, ESIC, PT, and LWF registration *and* monthly filings?
  • Are they current on the 4 Labour Codes (in force since Nov 2025)?
  • Do they ensure wages are structured ≥50% basic (Code on Wages)?
  • Do they issue appointment letters (now mandatory)?
  • Who bears the penalty if a filing is missed – them or you?

4. Payroll

  • Cut-off dates, payslip delivery, and bank-upload process?
  • TDS computation and Form 16 – included?
  • Full & final settlement turnaround for exits?
  • Can employees self-serve payslips / tax declarations (HRMS)?

5. Technology

  • Is an HRMS included in the fee, or a separate licence?
  • Attendance, leave, expenses, onboarding – all in one system?
  • Can you export your data anytime, in standard formats?

6. People operations

  • Onboarding & exit handled end-to-end?
  • Grievance handling and POSH/ICC support?
  • Policy framework + employee handbook setup?
  • How are escalations handled when your manager is on leave?

7. Proof

  • References from companies your size (1–100 employees)?
  • Years in operation and penalty/dispute track record?
  • Go-live timeline – and what happens if they slip?

How HRTailor answers all 21

One dedicated HR Manager + a 5–6 person pod + Cloud HRMS included, end-to-end setup

to monthly ops, fixed pricing from ₹10,000/month, full PF/ESIC/PT/LWF + Labour-Code compliance,

go-live in ~3 weeks. No hidden fees, no surprise compliance bills.

Book a 30-min call → hrtailor.com/contact-us/

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