6 legally vital elements in staffing-firm contracts — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

6 legally vital elements in staffing-firm contracts

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in Compensation and Benefits,Employment Background Check,Employment Law,Human Resources

When negotiating contracts with employee outsourcing firms, many organizations make background checks an afterthought and leave the specifics up to the agency. That’s a big mistake. Routine checks by the agencies typically don’t offer enough legal protection.

That’s why you need specific language in the contracts that shields your organization. The more you outsource, the greater your legal risk.

The number of lawsuits involving outsourced workers is rising. Examples: An Indiana magazine company faces a lawsuit after using an employment agency to hire a salesman who murdered a customer. He turned out to have a criminal record. In California, temporary call-center workers were indicted after stealing thousands of dollars donated to Hurricane Katrina victims.

Such lawsuits usually blame the staffing agency and hosting employer. To protect your organization from legal action, negotiate contracts that do the following:

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