Mariana Saroa de Souza
Lawyer at Marcos Martins Advogados
Due diligence, according to the literal translation, means “prior diligence”. An expression that is very present in the business world today, due to the changes and various business expansions, such as mergers, acquisitions and incorporations, it can be seen that due diligence is an essential tool for business organization, being used in various areas and, among them, there is great importance and prominence in the labor area.
Due diligence can be understood as a process that involves the study, analysis, evaluation and investigation of risks and opportunities in a business organization. It also includes risk prevention mechanisms for companies.
In the labor field, due diligence is a process of analyzing documents, regulations and procedures that are governed by labor legislation and/or have implications in this area, thus covering all of a company’s labor relations. It is directly related to the Human Resources sector.
With labour due diligence, there is great effectiveness in advising and preventing companies, avoiding possible problems ranging from non-compliance with a labour obligation, which could lead to an assessment by the Ministry of the Economy, to the preparation of strategic contingency reports, assessments and risks of labour liabilities, thus avoiding future problems that could compromise the organization’s livelihood.
It is also used as a way of identifying and measuring possible labor liabilities, especially in the case of buying and selling a company, avoiding unknown risks and providing security to the buyer in order to complete the legal deal.
It should be noted that the risks assessed by due diligence must be analyzed not only with regard to the company’s financial and economic issues, but also with regard to the company’s image in society.
Therefore, we can infer the importance of due diligence applied to the area, with specialists acting directly and preventively in the company, highlighting one of the main benefits, the reduction of labor risks to the company.
The labor team at Marcos Martins is qualified to carry out this type of analysis and is available for any questions.
