Due Diligence on Occupational Health Aspects for Mergers and Acquisitions

 

Due diligence is a legal term that describes the level of care or judgment that a reasonable person would be expected to exercise in a given situation. The term finds application in a wide range of business settings, including mergers and acquisitions, occupational health and safety, environmental impact assessments, supplier and vendor relationships, asset purchase decisions and employee hiring or promotion practices. Performing a due diligence analysis in such situations helps managers make informed decisions and manage risks appropriately. 

 

In the area of occupational health and safety, employers have a responsibility to exercise due diligence in eliminating hazards and creating a work environment that minimizes the risk of accidents or injuries. Due diligence is the legal standard used to determine whether employers may be held liable under occupational health and safety laws. Employers are generally not held liable for accidents if they are able to prove that they took reasonable precautions to protect workers from ill health and injury. Companies are able to establish due diligence by developing workplace occupational health and safety policies and procedures, providing appropriate training to employees, and holding managers accountable for implementing occupational health and safety policies and procedures.

 

Similarly, occupational health and safety due diligence is an important consideration for investors involved in mergers and acquisitions. This is particularly important where the business may have significant occupational disease liability – such as is the case with many South African mines.  Recent class action activity is important in this regard.

 

Healthy Mining has worked with companies to identify, assess and manage occupational health and safety risks and potential liabilities.