How To Make Sure Your Business Is Protected From Negligent Hiring

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Understanding and Preventing Negligent Hiring

Negligent hiring occurs when an employee causes harm to the company, another employee, or customers. As an employer, this is a serious legal issue. Negligence encompasses several areas, primarily involving situations where you are negligent in enabling an employee to perform certain acts.

Key Areas of Negligence

Four fundamental causes of action may arise from negligent employment practices:

  1. Negligent Hiring: Employing someone who later causes harm.
  2. Negligent Retention: Failing to remove an employee who is clearly a risk.
  3. Negligent Supervision: Inadequately monitoring or controlling an employee’s actions.
  4. Negligent Training: Providing insufficient training that leads to an incident.

Your Duties as an Employer

Negligent hiring can involve hiring individuals with a history of causing workplace unrest or other problems. For example, if an employee with a known history of harassment is hired and subsequently harasses a colleague, the victim could claim negligent hiring against you. You must ensure a safe and productive working environment.

How to Avoid Negligent Hiring

To prevent negligent hiring, conduct thorough investigations of potential employees. This should include:

  • Interviews: Conduct detailed interviews to understand the candidate’s background and suitability.
  • Verification: Confirm work and educational histories.
  • Reference Checks: Contact references to verify the applicant’s claims.
  • Background Checks: Perform background checks on applicants with conditional job offers. Deny employment if adverse findings arise.

The key is to show that you took reasonable care to avoid negligent hiring. The level of required diligence can vary depending on the job’s responsibilities and associated risks.

Other Forms of Negligent Employment Practices

Negligent hiring is closely linked to other negligent employment practices, including:

  1. Negligent Retention: Not removing an employee who misuses their position.
  2. Negligent Supervision: Failing to monitor or control an employee adequately.
  3. Negligent Training: Providing insufficient training leading to an accident.
  4. Negligent Recommendations: Giving a bad employee a good reference.

These areas often overlap and can be used as alternative claims against employers.

Protecting Yourself Against Negligent Hiring

To protect against negligent hiring, conduct thorough initial checks and consider additional measures:

  • Criminal Records Search: Conduct a Disclosure and Barring Service (DBS) search. 
  • References: Obtain and verify three business or professional references.
  • Qualifications and Licenses: Confirm all professional qualifications and licenses claimed by the applicant.

Avoiding negligent hiring requires a sensible approach and consistent planning. Adhere to these practices without being overly stringent to protect your interests and those of your employees.

Key Take Aways 

  • Understand negligent hiring and related practices: Ensure you know what constitutes negligent hiring, retention, supervision, and training.
  • Perform thorough checks: Conduct interviews, verify histories, check references, and run background checks.
  • Take reasonable care: Show that you’ve taken reasonable measures to prevent negligent hiring.
  • Implement additional checks: Consider criminal records searches and further verification of qualifications and references.

Frequently Asked Questions (FAQ)

1. What legal consequences can a company face for negligent hiring?

Companies found guilty of negligent hiring can face various legal consequences, including:

  • Lawsuits: Victims of the employee’s misconduct can sue the company for damages, potentially resulting in substantial financial penalties.
  • Reputation Damage: Legal battles can tarnish a company’s reputation, leading to loss of business and trust.
  • Increased Insurance Costs: Companies might face higher insurance premiums due to being deemed higher risk.

For more detailed legal implications, consult a legal professional or refer to authoritative resources like Citizens Advice.

2. What specific steps should be included in a thorough background check?

A thorough background check should encompass various elements to ensure comprehensive scrutiny:

  • Identity Verification: Confirm the candidate’s identity using government-issued IDs.
  • Employment History: Verify past employment details, including roles, durations, and reasons for leaving.
  • Education Verification: Check the authenticity of educational qualifications.
  • Criminal Record Check: Search for any criminal history over the last seven years.
  • Credit Check: Evaluate financial responsibility, particularly for roles involving financial transactions.
  • Reference Checks: Contact professional and personal references to gauge the candidate’s character and past performance.

Detailed guidance on conducting background checks can be found at ACAS.

3. How can a company create a culture that reduces the risk of negligent hiring?

Creating a proactive company culture that minimises negligent hiring involves:

  • Clear Hiring Policies: Establish and communicate clear policies and procedures for hiring.
  • Training for Hiring Managers: Regularly train hiring managers on best interviewing and background-checking practices.
  • Ongoing Monitoring: Implement a system for ongoing monitoring and performance evaluation of employees.
  • Encouraging a Reporting Culture: Foster an environment where employees feel safe reporting concerns or misconduct.

For more information on building a strong organisational culture, refer to resources like Chartered Institute of Personnel and Development (CIPD).

By addressing these questions, you can further protect your business from the risks associated with negligent hiring and create a safer, more productive workplace.

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