Nowadays staffing agencies look after the needs of various organizations to accommodate them with efficient working employees. And for that various needs, appropriate solutions are also solved by staffing agencies. However, with the staffing agency’s liabilities related to workplace issues, clients should not assume that penalties can be avoided.
Hiring temporary staffing services through an agency offers no protection against employment liability. In a few circumstances, the temporary worker might look forward to holding the client responsible as if the temporary worker was hired directly through the client under the theory of ‘joint employer’.
The context of joint employer liability emerges in various circumstances, which include wage, retaliation, hour, discrimination, and harassment. Assessments to determine joint employment differ through jurisdiction, law, and regulations and are often considered irregular and fluid.
Clients who look forward to using staffing agencies should take into consideration the following things to minimize their risk:
Review the Contracts
The contract between the client and agency should include that the agency will indemnify and defend the client for penalties, losses, and fees of the attorney in association with the employees from the staffing agency. It also includes claims related to wages. In addition to it, the contracts should include warranties and representations by the temporary staffing agency assuring the client that the agency will perform its duties to its employees entirely. The individuals sent by the agency to the client’s office premises will have to abide by the contract.
Exercise Due Diligence
Before attaining services from the staffing agencies the client should conduct thorough background research which should include the number of clients they provide their service to, the location of their business operations, and the period they have been in business. Clients should connect with the current clients of the staffing agencies and request references from the agency to determine their work ethics. It is advisable to search concerning the litigation to determine if the staffing agency has any record of litigation formerly.
Require Proof of Insurance
Clients should acquire proof of worker’s compensation insurance coverage mandatorily before involving a staffing agency and need the verification at frequent intervals. The staffing agency should ideally maintain EPLI- (Employment Practices Liability Insurance).
The client might want to carry out some oversight of the compliance of the staffing agency with applicable laws and regulations before getting their services although such involvement could have negative and positive effects. By being more involved in everyday practices, the clients are more likely to be considered joint employers of the workers temporarily retained through the agency.
Staffing agencies should also carry out cautionary actions. Often agencies are titled as defendants in discrimination and harassment lawsuits for the allegation of wrongful conduct that take place on the premises of the clients. Temp staffing companies in India along with other things must ensure that their clients have policies like harassment complaints & anti-discrimination practices in place, and take action promptly to undertake and correct any improper activity of which agencies are notified and made aware.