"In 2020, a recruitment agency faced a £10,000 fine for failing to check the right to work of a migrant worker who was employed as a security guard at a government building."
Risks of neglecting Pre-employment checks
The repercussions of neglecting thorough pre-employment checks can expose employers to various legal, financial, and reputational consequences. Employers face the risk of:
1. Hiring unqualified or incompetent employees: Without proper screening, employers may unwittingly bring on individuals who are ill-suited for the role. This could lead to poor performance, errors, and potential harm to colleagues or customers.
2. Engaging dishonest or fraudulent employees: Inadequate checks increase the likelihood of hiring individuals with dishonest intentions, such as theft, data manipulation, or participation in illegal activities.
3. Employing ineligible or illegal personnel: Failure to verify the right to work in the UK or a criminal history may result in hiring individuals who are ineligible or present a risk to the business.
4. Legal, financial, and reputational consequences: Breaching immigration, data protection, or employment laws can result in fines, penalties, or legal action, while the ensuing negative publicity can lead to a loss of trust and damage to reputation.
Learning from past mistakes
There are many examples of where not carrying out pre-employment checks has gone wrong for employers in the UK:
-In 2020, a recruitment agency faced a £10,000 fine for failing to check the right to work of a migrant worker who was employed as a security guard at a government building.
- A care home incurred a £4,000 penalty in 2019 for failing to check the criminal record of a care worker with a history of theft and fraud.
- A school faced a £3,000 fine in 2018 for not verifying the qualifications of a teacher who lied about holding a degree and teaching certificate.
- In 2017, a bank was fined £1.9 million for failing to check the identity and address of a customer who had opened an account with a fake passport and used it to launder money.
- A hospital was fined £200,000 in 2016 for failing to check the references of a doctor who had been dismissed from another hospital for misconduct and negligence.
The way forward: thorough and consistent checks
To navigate these pitfalls, employers are advised to conduct thorough and consistent pre-employment checks on all job applicants. This proactive approach has numerous benefits:
- Quality workforce: Screening ensures the hiring of qualified and competent employees who contribute positively to the organisation.
- Protecting assets and reputation: Employers can secure honest and trustworthy individuals who safeguard the business assets and reputation.
- Policy compliance: Hiring eligible and legal employees ensures compliance with organisational policies and regulations.
- Risk mitigation: Robust pre-employment checks help organisations avoid legal complications, fines, and penalties, fostering a secure work environment.
Pre-employment checks are not a mere formality but a strategic investment in building a robust and secure workforce. By consistently conducting thorough screenings, employers can insulate themselves from potential risks, ensure legal compliance, and maintain the trust and confidence of customers, partners, and investors.