Due Diligence: Essential for Workplace Safety
Workplace safety is everyone’s responsibility, but for leaders, the stakes are even higher. If you are a director, decision-maker, or someone with significant influence over a business, you have a legal duty to prioritise health and safety. This responsibility, known as due diligence, requires proactive steps to manage risks, protect workers, and comply with safety laws.
While the Model Work Health and Safety (WHS) Act provides a detailed framework for due diligence, Victoria’s Occupational Health and Safety (OHS) Act 2004 takes a less defined approach. However, aligning with the Model WHS Act’s standards is a smart move no matter where your business operates.
What is Due Diligence for Leaders?
As defined under Section 9AD(1) of the Corporations Act 2001 (Cth), an officer includes:
- Directors or secretaries of a corporation.
- Key decision-makers with substantial influence over operations.
- Individuals who significantly impact a corporation’s financial standing.
Due diligence means taking reasonable steps to ensure your business complies with WHS laws. It’s not just about reacting to issues—it’s about actively fostering a safe workplace. Neglecting this duty can lead to serious legal consequences, even if no incidents occur.
The Core Elements of Due Diligence
1. Stay Informed
- Learn about WHS laws and industry standards.
- Seek advice from WHS specialists when needed.
2. Understand Your Workplace
- Observe tasks, consult workers, and review risks relevant to your workplace.
3. Provide Resources
- Equip employees with tools and training.
- Allocate budgets for safety measures and staffing.
4. Ensure Effective Reporting
- Establish clear systems for reporting hazards and incidents.
- Keep detailed records and act promptly on reports.
5. Check and Verify
- Regularly audit safety systems.
- Address gaps to maintain compliance.
The Role of Records in Due Diligence
Keeping thorough records demonstrates that you are taking reasonable steps to comply with WHS laws.
Key benefits of maintaining records include:
- Proof of Compliance: Records can defend your actions during audits or investigations.
- Tracking and Improvement: Logs highlight trends and areas for improvement.
- Accountability: Transparency fosters trust with workers and regulators.
Essential records to keep:
- Training logs and inspection reports.
- Incident and hazard reports.
- Maintenance schedules and consultation records.
Why Proactive Management Matters
Due diligence is about leadership and accountability. Prioritising it ensures:
- Safer, more engaged employees.
- Reduced risks and legal compliance.
- Protection from costly incidents and penalties.
Now is the time to assess your approach to workplace safety. Are you meeting your due diligence responsibilities? Start by reviewing systems, keeping detailed records, and staying informed about your obligations.
Helpful Links:
- Operating in Victoria? Visit the WorkSafe Victoria website for officer duties and obligations.
- Covered by the Model WHS Act? Learn more about your due diligence responsibilities on the Safe Work Australia website.
