Are you carrying out thorough background checks?
It’s the kind of horror story no employer wants to read; but a former participant on Secret Millionaire (the TV show) had to sell their company and make six staff redundant when their accounts assistant stole £35,000. She’d been employed for less than a month.
She did it by setting up a fake supplier with a similar name to a real one in order to bypass internal controls. She then transferred the money in a series of payments.
There are all kinds of good accounting practices that can help manage such risk, but we want to use the story to highlight your first line of defence: taking the time to conduct thorough background checks during your recruitment process.
You’ll want to do this with any new hire to a degree; but for accounting roles and other sensitive jobs it pays (or in some cases is a legal requirement) to dig deeper.
By law, you must carry out a “right to work” check on all employees and there are heavy fines for non-compliance.
It is normal good practice to request references from past employment or, if these are not available, character references.
When recruiting for accounting or other financial-related roles, there are a number of other checks which we would advise performing. These include a DBS check to flag certain elements of a criminal record, credit references to see if their personal finances are in a poor state (which could be a sign of incompetence or a motive for theft), and proof of qualifications. Some FCA-regulated jobs require additional checks as well.
There are, of course, other types of role that call for more thorough checks – in particular working with children or within healthcare, and where certain skills fundamental to the job are required, like DVLA checks for drivers.
But almost anyone could have the potential to dupe you if they are so minded. A warehouse worker was jailed for two years and ordered to repay John Lewis more than £55,000 for industrial-scale theft of products which he was then reselling online.
Protect yourself and your business by being thorough with your background checks.
Three unusual tribunal cases from 2023
While there is nothing funny about being taken to an employment tribunal, there are a few cases every year which will raise anyone’s eyebrows when reading about them with a certain detached curiosity. Here are three of the best from 2023.
Jump scare! Creepy crawlies no cause for dismissal – Not for the squeamish, one train driver made a successful unfair dismissal claim when he was sacked for playing two practical jokes on a colleague. The pranks involved placing the shed skin of first a tarantula, and then at a later date a snake, in her locker to make her jump. The judge gave a detailed dissection of the nature of the prank, concluding that dismissal for gross conduct was too strong a response in this case, whilst noting that in different circumstances it may have been appropriate.
Accidentally sacked whilst on annual leave – This one is a story of administrative error. A supermarket shop assistant, blissfully ignorant whilst on annual leave, was sacked for supposedly being AWOL. Needless to say, she did not respond to any of the letters inviting her to a disciplinary hearing regarding her absence, or to appeal the eventual dismissal because, quite simply, she was on holiday. The large retailer did offer to reinstate her, but she declined. The judge upheld her claims of breach of contract, unlawful deduction from wages and unfair dismissal, awarding £5,000.
Big break: £147K awarded – Having already won an unfair dismissal claim, a judge had to decide how much should be awarded to a former employee of a prestigious British car manufacturer for loss of earnings. The employer argued strongly for a lower sum as there was plenty of opportunity for the man to find work; but against a backdrop of caring for a young daughter, the pandemic, and a lack of transport, the judge sided with the ex-employee, who had found limited work as well as retrained as a plumber. A substantial £147,000 was awarded.
Don’t forget, our Advice Line comes with significant tribunal protection features. Contact us to find out more.
Vaping at work – Are your policies up to date?
You can’t have failed to notice the steep rise in vaping recently; whether it is the number of vape shops on the high street, or catching a tropical whiff when standing in a queue.
At The HR Dept, it is bringing an issue to light: that many SME smoking policies do not make provision for vaping, and the law is vague to non-existent.
As the practice becomes more prevalent, it becomes more important to have a policy; because although popular there will still be a silent (or not so silent) majority who do not like the impact on them. And although e-cigarettes do not contain tar, there is no conclusive understanding of the long-term effects.
We would not advise permitting vaping without limits. So if you don’t want to impose an outright ban, you should think about where it will be allowed without impacting others or your operations. If you would like help preparing a vaping policy or any other policy for your employees, get in touch.
Is it okay to monitor staff?
The Information Commissioner’s Office (ICO) has fired a warning shot across the bows of employers who monitor their staff, issuing guidance on required standards.
With flexible working becoming much more common since the pandemic, invasive forms of monitoring have become more of an issue, with employers not having as much day-to-day visibility of their teams. Use of intrusive technology like webcams, keyboard tracking and email/call logging can erode trust and harm well-being.
The ICO has emphasised that monitoring must have a clearly defined purpose; be necessary, proportionate and respectful of rights and freedoms; that staff must be informed in an easy-to-understand format; the least intrusive path should be followed; and that all data should be processed in line with data protection laws.
If you feel that some form of monitoring is necessary, but want advice on the best course of action, we are just a phone call away.
Should “heat of the moment” resignations be ignored?
Your employee has a strop, storms out saying they’ve had enough and resigns. Should you take that at face value, or give them an opportunity to retract?
As tempting as it might be to accept such a resignation as suddenly as it was issued, a more tempered approach is advised. An employment appeals tribunal overturned an earlier hearing which had given the employer discretion to summarily accept such a resignation.
The judge gave a number of guidelines for future reference, including that every case should be judged on its merits, that how a reasonable bystander would interpret the resignation was key, and that it was not sufficient to solely rely on the subjective understanding of the recipient, although this understanding would have a degree of relevance.
As in many aspects of life it is best not to make big decisions when emotions are running high. Allowing for a cooling-off period will often help you both reach the best outcome.
Pyjamas pandemic
You’ve heard of dress down Fridays but just how “down” are your employees dressing?
According to one survey, 33% of employees confessed to wearing pyjamas whilst working (we assume from home). The average number of days in this attire was 46, but nearly 10% claimed to wear their pyjamas every working day.
Some employers may not care but, like many, you might feel this is going too far – a lack of professionalism that may be borne out in falling productivity, too.
If you need a reset on your hybrid or flexible working policies, we can help.
