ABSTRACT

The aim of human resources due diligence is to gather the information necessary to decide how best to manage the business once the deal is done. Human resources due diligence is often presented from a legal angle, with good reason, given how much HR legislation there is. The precise form of human resources due diligence depends on three factors: the reasons for the deal, the type of business being acquired and the form of the transaction. Human resources due diligence involves the disclosure of employees' personal information. Although human resources can be a source of considerable risk in a deal, the importance of the human factor in successful acquisitions should never be underestimated. Human resources due diligence is not always easy because of the constraints imposed upon it by data protection legislation. It is further complicated by the different rules and regulations, even in jurisdictions with the same sources of employment law.