Request information on the employment aspects of a business or service as part of a due diligence exercise
Key points
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 transferee 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 transferee 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.
Both parties, the transferor and transferee, should ensure that they comply with the requirements of the General Data Protection Regulation when processing information about employees in connection with the due diligence exercise.
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