Request information on the employment aspects of a business or service as part of a due diligence exercise
- In most cases, a TUPE transfer will involve the transferee conducting a due diligence exercise regarding various aspects of the undertaking that is to be transferred.
- Essentially, this is an investigation by the employer to help it prepare its offer for the business or services. It should include employment matters such as details of employee benefits and bonus schemes, whether contractual or not.
- Ideally, the employer should carry out its due diligence enquiries early in negotiations, in order to ensure that its investigation is complete before there is any pressure on it to sign up to a legally binding contract for the transfer.