Though most claims against staffing agencies stem from dissatisfied employers, a good number of them stem from the hires themselves. Staffing agencies are in the unique situation of being the employer of record but not having any real control of what the employee does, where he or she works, how much they get paid or anything else once the contracts are signed. These agencies rely on their clients to treat employees well, and while most do, there are a few employers who don’t, which is why it is always a good idea for staffing agencies to invest in employee liability insurance.
Whether an employee files a claim of sexual harassment or gender discrimination, or he or she claims wrongful termination or unfair pay, your agency can be held just as liable as the employer itself. Not only are you responsible for providing clients with honest, hardworking and reliable candidates, but also, you are responsible for placing candidates in environments in which they feel safe and comfortable. If you fail either the client or the candidate, you have essentially failed in your job, and you can be held liable for that failure.
Though you may do the best you can to make the best possible matches, mistakes will happen. When they do, make sure that you’re covered with a comprehensive employee liability insurance policy.