What is Due Diligence in the Workplace?

Table of Contents

Share at:

Many people have heard of the term due diligence but few know what it actually means in practice. Ultimately, due diligence applies to a range of scenarios and contexts. It is particularly important in the workplace as it can help to avoid costly mistakes. Read our guide to find out what due diligence is in the workplace.

What is Due Diligence?

In a legal context, due diligence is the reasonable steps taken to avoid committing a tort or offence. On the other hand, in the workplace, due diligence means taking precaution to protect the health, safety and welfare of all workers who could be put at risk from their undertakings. Thus, employers have a continual obligation to ensure workers, volunteers and visitors are safe in the workplace. This is a legal requirement.

As previously discussed, employers must exercise due diligence. In New South Wales, the Work Health and Safety Act 2011 (NSW) governs due diligence in workplaces. The law requires employers to exercise due diligence in complying with their Work Health and Safety (WHS) obligations. Hence, as a business, you should appoint an officer to ensure compliance. Therefore, this officer has a responsibility to maintain a high standard of due diligence. This generally involves a WHS policy. You can customise our WHS Policy for free.

Protect your business and customise your WHS Policy for free.

Create and download our WHS policy.

Get started

What is Meant by ‘Reasonable Steps’?

As previously stated, due diligence is the reasonable steps taken by a person to avoid harm. So what can we deem as reasonable steps? Accordingly, section 27 of the Work Health and Safety Act 2011 (NSW) sets out what reasonable steps must be taken, including:

  • Maintaining knowledge of current WHS matters
  • Understanding the business operations and the associated hazards and risks
  • Ensuring the person conducting business uses appropriate resources and processes to eliminate or minimise WHS risks
  • Making sure the person conducting business has processes for receiving and considering information regarding incidents, hazards and risks and responding in a timely way
  • Ensuring the person conducting business implements processes for complying with their duty
  • Verifying that these steps have been carried out

Why Do We Need Due Diligence?

Due diligence is an important consideration in every business. It is a powerful and proactive management device to control and prevent workplace hazards and injuries. An officer will ensure WHS issues are mitigated. This will also improve the overall safety of a workplace. Therefore, this works to reduce workplace injuries and possible torts or offences. Hence, you must ensure an officer is appointed and you are compliant with WHS obligations as a workplace. For more information, you can read our guide ‘Why do I Need to do Due Diligence?‘.

Final Thoughts

To conclude, due diligence is a requirement of every workplace. It ensures people take reasonable steps to avoid offences and harm. If you are unsure whether you are complying with your WHS obligations, we recommend consulting a Workplace Safety Lawyer.

Don’t know where to start? Contact us on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest lawyer marketplace.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

Property Ownership: How Far Do Your Land Rights Reach?

Struck gold? Photographed from above? What does the law say about your rights to the surface, airspace and soil below your land? Read this to find out more.

Letter of Resignation Sample (2027 Update)

Resigning from your job isn't always an easy thing to do. Create your free Letter of Resignation (Company) by using our sample.

Legal Documents You Need For Your Online Business in 2027

This article is a guide to all legal documents your online business needs in 2027.

How to Terminate a Contract by Mutual Consent

There are many legal ways to terminate a contract. Mutual consent is the most civilised way to terminate if absolutely necessary. Find out more here.
Home desk at night with a dark laptop and tablet beside a warm lamp

Right to Disconnect: Small Business Employer Guide

The right to disconnect now covers small businesses. Learn when staff can refuse after-hours contact and what your business must do.

When Should I Lodge a Caveat? (2026 Update)

A caveat is a legal document which notifies others of your interest in a piece of land. Find out when caveats are used in this article.