What actually does the term Due Diligence mean?
The term due Diligence is the art of carefully investigating, verifying, and analyzing the obtained data from the research.
In terms of employee due diligence, the most important thing which is to be seen is the past performance or actions of the employee.The due diligence start from knowing the individual with his Full name , followed by verification of DOB and verification of the Indian Document.Along with the back ground check of the individual details his family back ground also need to be verified. The martial status of the person , Number of children , Name of spouse.The education and the professional competencies of the employee is to be verified.After the basic knowledge of the employee the Due Diligence Specialist should search for the Local Default Cases and legal proceedings , if any in the name of the employee or his close relatives.The public information and litigation against the employee should be addressed.
The financials of the individual must be verified that weather his loans are cleared on regular basis, there are no unpaid and bounce cheque in the name of the employee.The registered mortgage and the net worth of the employee should also be assessed.
Employee’s directorship in various companies should be verified on the MCA21 website. This enables the Due Diligence Specialist to identify multiple directorship of the employee and his connection with various companies.In case of any doubt the registered address of the companies which belongs to the employee should be verified me and address.
The most important thing which is to be verified is that whether the employee is a Politically Exposed Person or not.While having a thorough analysis of the persons background , any kind of adverse media news can be check point for the Due Diligence Specialist.It covers the entire sphere of Politically Exposed Persons (PEPs) and their associates and close family members, however, it also comprises individuals who are suspected of wrongdoing but have no conviction or enforcement action against them, those suspected of engaging in criminal or fraudulent activities, those involved in high-risk areas of business, and those who may be tarnished by association with a known corrupt individual, company, or regime.
Digital Media and Print Media are one of the sources which a Due Diligence specialist uses for finding any kind of news related to employee in public.If there is any news in public regarding corruption, bribery on the employee these are indications of problems which need to be reported by Due Diligence Specialist.
There should be a credit check of the employee and the behavior of the employee should should also be kept in mind . The reputation of the employees should also be seen by the Due Diligence Specialist.
