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EXPERT ADVICE: Is reference checking legal?

JOBURG - The importance of checking references are vital.

Written by Ivan Israelstam, Chief Executive of Labour Law Management Consulting.

In order to screen job applicants for qualities such as punctuality, reliability and honesty reference checking has always been the key screening technique. Unfortunately, many employers merely take the applicant’s word for it that he/she has the necessary abilities for the job. This often ends up in poor work performance, an angry employer and an even more angry CCMA commissioner if the employee gets fired unfairly.

While carrying out thorough reference checks is very important, doing so is a challenge.

For example, checking the employee’s behaviour and work performance in a previous job could well be seen as invading the employee’s privacy but South Africa’s laws fail to provide clarity on this. This means that, while reference checking is legal, employers need to be very careful in taking and giving references. A number of factors must prevail before an employer considers embarking on a reference checking exercise:

  •  The job applicant must have given his/her consent to the reference checking
  • The information given must be the truth
  • The referee must have a legitimate interest in giving the information
  • The potential employer must have a legitimate interest in receiving the information

Potential employers should be aware of the following:

  • Where handling of money or other vulnerable assets is an integral requirement of the job, employers should obtain expert advice in devising an applicant screening strategy which detects dishonest tendencies and which does not infringe the applicant’s constitutional and other legal rights
  • In any employment screening communication with an applicant credentials can be fabricated or exaggerated, and quite often are. In addition, job applicants often omit from their CVs employers who disciplined them. Employers should therefore not accept applicant claims at face value

Various techniques for screening of honesty are available. For example:

  • Criminal check: This establishes if the applicant has a criminal record
  • The RED Book: The banking industry has a register of employees who have been fired for dishonesty
  • Financial check: The applicant’s financial history is probed and the system ascertains whether he/she has any recorded judgements, bankruptcies, etc.
  • Fingerprint check: Computerised information from 1987 onwards can be obtained after the fingerprints supplied by the client are forwarded for verification
  • Drivers licence check: Informs subscribers whether the job applicant has a valid driver’s licence
  • Educational qualifications check: The service verifies any qualifications obtained by an applicant
  • Character references & verification of previous employment: Previous employers are contacted on behalf of the subscriber to verify previous employment and experience and gathering information on the candidate’s previous work performance and conduct
  • Written honesty tests and pre-employment polygraphs can assist in indicating whether a job candidate is telling the truth but these must be used with care

Due to the fact that it is very difficult, time consuming and costly to terminate the employment of unsuitable employees all employment agencies and employers need to consider using the above pre-screening systems in order to avoid hiring the wrong people.

Details:

Labour Law Management Consulting. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address: ivan@labourlawadvice.co.za. Web address: www.labourlawadvice.co.za.

To attend our Labour Law Update 2015 seminar in Johannesburg on 5 June 2015 please contact ronni@labourlawadvice.co.za or phone Ronni on 0845217492.

 

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