Employment Agency Liability: Reducing Wrongful Termination Claims

Employment Agency Liability Reducing Wrongful Termination Claims

Employment Agency Liability: Reducing Wrongful Termination Claims

Employment agencies face unique liabilities. They interview, screen, and hire candidates, but on behalf of a third party. This means that they also are sometimes asked to terminate employees before a job assignment is complete, on behalf of their third party clients. This opens them up to Wrongful Termination claims. While having the right insurance policies in place is the only want to protect their selves financially from this type of claim, there are steps that your employment agency clients can take to potentially reduce the risk of them happening in the first place.

Document. It’s a good idea for recruiters to track and record any feedback given from their clients after a job assignment has been completed. This way, if a termination was due to performance issues, you have records of past performance problems.

Have Written Guidelines. These should describe the process used to hire and terminate employees, as well as an explanation of your responsibilities and commitments versus those of the client the employee was assigned to.

Be Specific. When engaging in a termination discussion with an employee, it’s important to as clear and specific as possible as to why he or she was let go. Being vague could possibly push the employee to take legal action when they may not have before.

Wrongful Termination claims are one of the most common employment related lawsuits that a company may face. At World Wide Specialty Programs, we’ve always had a singular purpose – to design, develop and provide staffing insurance products for the staffing industry. Working with over 2,000 insurance brokers nationwide, we know the staffing industry better than anyone, and can provide great options for your staffing industry insurance needs. Our Employment Practices Liability insurance policy, designed specifically for staffing services, provides coverage to the staffing firm for their in-house employees and for their contract, (temporary employees) placed with clients who are subject to the client’s workplace environment. Contact us today for more information at (877) 256-0468.

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