Employment Due Diligence

Seeing clearly through complexity

In times of change, whether acquisition, restructure, or internal transformation, employment due diligence is critical.

It goes beyond legal formality; it is about surfacing risks, clarifying obligations, and enabling confident decision-making. Watershed’s approach is not generic. We deliver targeted, employment-specific insight that helps organisations act with assurance and foresight.

From reviewing contractual arrangements to examining grievance patterns and cultural red flags, our due diligence work brings clarity to complex people environments.

A legal and operational lens

Unlike conventional law firms that focus narrowly on technical compliance, we take a broader, commercially grounded approach. We assess how employment structures align with operational needs, highlight areas of friction, and provide practical options for resolution or integration.

This might include:

• Detailed audits of employment contracts and handbooks
• Review of disciplinary, grievance and performance processes
• Analysis of reward structures, benefits, and working arrangements
• Appraisal of employee relations issues and HR systems
• Compatibility with the acquiring or parent company’s existing framework

The result is a sharper picture, not just of legal risk, but of cultural and structural fit.

Post-deal audits and culture checks

Some of the most valuable insights come not before a deal, but after. We frequently support clients with post-acquisition or post-transfer due diligence, conducting discreet cultural and procedural audits that assess how reality aligns with expectation.

Are formal policies being followed in practice? Are there pockets of discontent, inconsistent management behaviours, or unseen ER risks? Are managers capable of leading through change, or are they disengaged and defensive?

Our ability to step into the organisation and speak directly with key individuals gives clients a textured understanding of their workforce, and a clearer view of where support is most needed.

Ground-truthing the HR narrative

In large restructures or ongoing transformation programmes, we are often asked to validate internal HR assessments. This includes checking that risks have been accurately captured, that past grievances or tribunal claims are appropriately managed, and that current systems are robust enough to support the next phase of organisational change.

Where necessary, we deploy experienced HR consultants alongside our lawyers to evaluate policy adherence, consultation readiness, and leadership engagement.

For clients navigating complex or time-sensitive programmes, this integrated approach allows for swift, lawful action, grounded in a reliable understanding of the people landscape.