HR Due Diligence Preliminary Checklist
This check list is a starting point for thinking about the enquires you need to make. Every situation is unique and there will be particular issues that need exploring either as a result of information obtained or because of particular circumstances surrounding any potential transfer. The list is not a substitute for legal advice. – Russell-Cooke Solicitors
1.1 / HR ISSUES1.11.1 / Organisation chart.
1.21.2 / Details of the numbers and types of employees together with details of their full name, sex, age, date of commencement of service, number of years continuous employment, place of employment, (and mobility clauses) notice period, remuneration, annual leave, and all other benefits (in each case whether contractual or otherwise).
1.31.3 / Details of any company car scheme or provision of equipment or service to staff or their family.
1.41.4 / Contracts of employment, including fixed term contracts.
1.51.5 / Job descriptions and staff handbook
1.61.6 / Details of any pay review and any negotiations currently in progress, and of any recent (in the last 12 months) changes of terms and conditions in relation to any employee.
1.71.7 / Details of any changes that have been agreed or are contemplated in relation to terms and conditions, handbooks, policies, benefits and redundancy arrangements and the date that any such changes will come into force.
1.81.8 / Details of any compensation or redundancy payment agreed to be paid to any ex-director or ex-employee any part of which is still outstanding or not paid and details of any contemplated redundancies..
1.91.9 / Details of any redundancy policy or procedure, practice, arrangements (whether or not contractual) and which have been applied in the last two years.
1.101.10 / Details of the names of all trade unions and other employee representatives, with the name of the trade union, the position held and how long the position was held – and details of any disputes in last 5 years.
1.111.11 / Details of any disciplinary proceedings taken against an employee or grievance brought by an employee whether brought under the Company’s disciplinary or grievance procedure or otherwise and any matters which might give rise to such (in the last two years).
1.121.12 / Details of any legal action threatened or pending, including any court, employment tribunal or arbitration claims or any matters which might give rise to such. Includes any existing or threatened proceedings by any former or current employee or trade union or employee representative.
1.131.13 / Details of any enquiry, dispute, correspondence or contact with the EOC, CRE or DRC the H and S Executive and the Inland Revenue or a trade union concerning employees, including any inspection reports, prosecutors, violations or notices relating to health and safety within the last three years.
1.141.14 / Details of any court judgement or current employment tribunal award in respect of any employee dispute (in the last 4 months).
1.151.15 / Details of any accidents within the last three years, including whether proceedings have been brought or threatened in respect of such accidents and details of any other accidents or injuries in respect of which proceedings are outstanding.
1.161.16 / Details of all individuals in the undertaking working on training, work experience or similar schemes.
1.171.17 / Details of all consultancy agreements or self-employed personnel other than those used on a temporary basis, and confirmation that Schedule D status is accepted by the Revenue.
1.181.18 / Details of any casual employees paid by cash and not through deduction of tax or via payroll.
1.191.19 / Details of agency staff.
1.201.20 / Is tax compliance such as P11D’s, year end returns, PAYE/NI payments up to date?
1.211.21 / Details of any “custom and practice” arrangements, staff handbook, procedures (including but not limited to sabbatical, enhanced redundancies, leave, bonus) and policies
1.221.22 / Details of staff loans and all sums owed.
1.231.23 / Copies of union recognition agreements and other collective agreements which affect staff and anonymised details of trade union membership.
1.241.24 / Details of any other arrangements/consultation with unions outside recognition and minutes, details of unions and members paying into them, number of employees paying union fees through payroll, details of union representative and contact officers.
1.251.25 / Details of employees with responsibilities for children under 5 (18 if disabled) and details of parental leave entitlement taken.
1.261.26 / Details of anyone who is or has been (in the last 12 months) or is expected to be on career break/extended or maternity leave, paternity and adoption leave including dates of commencement and return or otherwise absent for more than two weeks.
1.271.27 / Details of any non-standard contracts including details of any casuals or bank staff used, and any agency staff used by the organisation.
1.281.28 / Details of any secondee.
1.291.29 / All sickness records including details of outstanding health issues of any employee
1.301.30 / Details of any staff current disciplinary investigation and details of employees who have been disciplined n the last 4 years.
1.311.31 / Number of employees dismissed in last 12 months with details and any potential constructive dismissals.
1.321.32 / Details of grievances raised in last 12 months (whether formally or not) and details
1.331.33 / Number of outstanding grievances with details of outstanding grievances.
1.341.34 / Details of current sickness absence levels
1.351.35 / Details of current long term sickness
1.361.36 / Details of employees covered by the Disability Discrimination Act (and any adjustments) and whether have any indication of any disability as defined in the DDA.
1.371.37 / Details of any medical retirements in the last three years and whether any medical retirements are being considered.
1.381.38 / Any custom and practice including ex gratia payments in last 5 years?
1.391.39 / Details of any staff previously transferred by TUPE, including any relevant collective agreement.
1.401.40 / Number of leavers in last two years and copies of exit interviews.
1.411.41 / Any current recruitment?
1.421.42 / Consultation arrangements used on this or previous issue.
1.431.43 / Volunteering – are there any arrangements and other collective agreements which affect staff? If so, details of volunteer staff, copies of volunteer policies and any consideration given (whether monetary or otherwise).
1.441.44 / Full list of all self-employed consultancy or similar arrangements with documentation
1.451.45 / Details of any informal extra-contractual, customary right or obligation of employees
1.461.46 / Sickness and disability schemes
1.471.47 / Details of salary schedule
1.481.48 / Number of employees suspended with details
1.491.49 / How many employees have resigned from the organisation in the last three years?
1.501.50 / What arrangements for consultation with affected staff have been made.
1.511.51 / Number of staff who objected to being employed by the transferee and action taken?
1.521.52 / Procedures for obtaining and giving references, obtaining criminal records, ascertain immigration status.
2.2 / PENSIONS
2.12.1 / A list of all pension schemes (both occupational and personal) applicable to the employees. Further enquiries will be made if any such schemes exist.
2.22.2 / Details of any individual pension arrangements or executive schemes applicable to any of the employees, whether ex gratia or contractual, or any variation/increase for individuals or groups of normal benefits being provided under any scheme mentioned above.
2.32.3 / Details of any other pension arrangements which exist outside of Great Britain in respect of employees.
2.42.4 / Details of any life assurance, permanent medical health and accident insurance schemes in respect of any of the employees and a list of all participating members.
2.52.5 / Details of any current or pending applications for early retirement on grounds of ill-health or incapacity by any employee, and of any employee absent from work due to ill-health or incapacity.
2.62.6 / Have part time staff always had same pension rights as full time.
2.72.7 / Is there a defined benefit occupational pension scheme and will change trigger exit debt
2.82.8 / Is there any other form of pension scheme and will there be contractual or other penalties associated with change
2.92.9 / Will it be necessary to obtain membership of any scheme, particularly a local authority or health authority scheme and if so, what will the terms be. Are there any entry or exit costs
2.102.10 / Do any pension rights transfer, for example, that of early retirement triggering risk of additional contributions to defined pension scheme
2.112.11 / Have terms and conditions and trust documents of any pension scheme been fully reviewed by lawyers and advised on
2.122.12 / Details of any provision for death-in-service benefits
Warning: No checklist is comprehensive, it is merely a starting point for enquiry.
© The Charity team at Russell-Cooke
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Putney
London SW15 6AB
020 8789 9111