HB 323-2007 Employment Screening Handbook

7/31/2019 HB 323-2007 Employment Screening Handbook

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HB

HB 323 2007

Employment Screening Handbook


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HB 3232007

Handbook

Employment screening handbook

First published as HB 3232007.

COPYRIGHT

Standards Australia

All rights are reserved. No part o f this work may be reproduced or copied in any form or by

any means, electronic or mechanical, including photocopying, without the written

permission of the publisher.

Published by Standards Australia, GPO Box 476, Sydney, NSW 2001, Australia

ISBN 0 7337 8407 0


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PrefaceThis Handbook was prepared by the following authors for the

Standards Australia Committee MB-009, Human Resources andEmployment:

Mr Gavin Love International Association of Emergency

Managers

Dr Carl Gibson La Trobe University

Mr Guy Underwood RISQ

The objective of this Handbook is to provide a broad framework and

core processes that should be included in an employment screening

process, project or program of work. Together with the Standard

(AS 4811-2006 Employment Screening) this Handbook outlines a

base line for the conduct of employment screening along with a

number of generally accepted practices. Some organizations may

choose to implement more detailed employment screening

measures. Regardless of what level of employment screening is

implemented, it should be based on a thorough understanding of the

organization and the risks that the organization has to manage.

It is intended that this Handbook can be used by any size or type of

organizationfrom large multinationals to small businesses, not-for-

profit agencies and government agenciesthat has identified the

requirement for, and merit of, developing effective employment

screening processes. However, some recommendations may be

more appropriate to some types of organization, rather than others.

A thorough employment screening process is considered to be a

highly effective way of minimizing and guarding against some

potential risks and ensuring that the appropriate person is selected

for a position. The objective of the screening process is to reduce the

risk of a potential breach and to ensure the integrity, identity and

credentials of people within an organization.

The field of employment screening is rapidly evolving and as such

this Handbook cannot cover all aspects and variant approaches to it.

The authors have endeavoured to provide an overview of generally

accepted practices to inform the understanding of the processes. Assuch no warranty is provided or implied as to the accuracy or

practical applicability of the contents of this Handbook to any

organization or individual.

This Handbook is consistent with the framework outlined in

AS/NZS 4360:2004, Risk Management and AS 48112006,

Employment Screening.

Key Sections of AS 48112006 have been reproduced within this

Handbook (contained within shaded boxes) and are accompanied

by commentary which provides additional detail and practical advice

on the implementation of the Standards principles. Further practical

guidance is provided through the use of a hypothetical case study

contained within non-shaded boxes in each of the key sections.


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Employment screening plays a critical role as part of an

organizations risk management process in providing a fundamental

assessment and mitigation process for certain types of risk.

It is a reality that even the best processes cannot completely

eliminate risk however this Handbook, used in conjunction withAS 48112006, provides a framework for reducing significantly the

risks associated with employment screening. Users of this Handbook

and Standard should also consider their position regarding legal

liability attaching to the employment screening process, in particular

developing processes that ensure as far as possible that:

1 They act with honesty, frankness and fairness in their dealings

with applicants.

2 Information has been verified.

3 Opinions are based on accurate facts.

4 References provided are balanced.

5 The applicant is aware of:

the purpose for which information is collected, and

the organizations or types of organizations to which the

organization usually discloses such information.

6 The applicant consents to the use or disclosure of the

information.

The authors would like to acknowledge the contribution of the

Australian Securities and Investments Commission (ASIC) for its

assistance in the development of this Handbook. Specialconsideration is also extended to the other members of the working

party responsible for the Employment Screening Standard who have

provided freely of their advice and encouragement during the

preparation of this Handbook, namely Nigel Parameter and Glen

Thomas.

The authors would also like to extend their appreciation to all of

those others that have contributed to the review of the various drafts

of this handbook.

Disclaimer:

This Handbook provides general guidance only and should not be

relied upon as legal advice. It does not attempt to consider all the

issues relevant to appointing or employing individuals. Seeking legal

advice is the responsibility of each organization, as each case will

depend on specific facts and/or circumstances.


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Contents

Page

Executive summary ........................................................................ 51 Scope and general ............................................................... 7

1.1 Scope ......................................................................... 81.2 Introduction................................................................. 91.3 Entrusted person ...................................................... 10

2 Employment screeningoverview...................................... 11

2.1

Basic requirements................................................... 12

2.2 Employment screening: the go or no go decision ..... 142.3 Developing an employment risk landscape............... 142.4 Developing and presenting the business case for

employment screening.............................................. 153 Employment screeningThe process ................................ 17

3.1 Overview of the employment screening process....... 193.2 Employment screening risk assessment................... 213.3 Developing the employment screening program....... 383.4 Temporary employees, contractors and consultants. 48

4 Communication................................................................... 49

4.1 The basics of communication ................................... 494.2 Engagement ............................................................. 51

5 Records and documentation............................................... 545.1 Records and documentation ..................................... 545.2 Privacy...................................................................... 555.3 Ethics........................................................................ 56

6 Further issues..................................................................... 576.1 People employed in screening.................................. 576.2 Right of review.......................................................... 58

APPENDICES

A Understanding the organizationEstablishing the

context...................................................................... 59B Employment screening policy ................................... 63

C 100 Points Formulaexample.................................. 65D Bibliography.............................................................. 67


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Executive summaryAn organizations ability to prosper and succeed relies on the

trustworthiness and honesty of its employees. The illegal, unethical

or negligent activities of a single employee can result in major

financial, reputational, performance or safety related harm to the

organization. Society is facing an increasing risk from individuals

using fraudulent and deceptive means to gain employment,

advancement or other benefits to which they are not entitled.

Employment screening provides a critical role in managing this

growing area of risk for an organization and in protecting its most

important asset its people. Traditional views of employment

screening have focussed on the pre-employment phase or

recruitment of a prospective employee, rather than addressing

employment screening as a holistic process related to both the

individual (throughout their tenure of employment) and the changing

nature of the organization. Generally there has not been a strong

focus on the internal risks an organization faces, particularly those

created by changing employment circumstances (such as

promotions, changes of duties, foreshadowed terminations, etc.) or

the impacts of changing personal circumstances (family business

interests, unmanaged debts, etc.).

An organization should ensure that people entrusted with

organizational information or resources

are eligible to have access to that information;

have had their identity established;

are suitable to have access to that information; and

are willing to comply with the standards that safeguard their

organizations resources against misuse.

Effective employment screening should enable the employer to make

prudent decisions on hiring, promotion and changes of duties that

are based an informed understanding of a candidates background

and credentials. Such employment screening should also verify

compliance with any legislative requirements that may exist such as

citizenship, work visas, disqualifications, etc. Employment screening

should be established as a proactive risk treatment that promotes a

safe working environment and that protects the organizations

reputation and other assets (including people, property and

information).

A range of approaches to employment screening have been adopted

in the past by different organizations. Some approaches have limited

screening to only the most senior staff, while others approaches

have adopted employment screening at all levels of the organization.

The rigour of employment screening has also varied from an often

cursory referee check, to a comprehensive background and records

review. There is no right or wrong approach; the level of employment

screening adopted needs to match the context that the organization

operates within and the risks created by the role to which the person

is to be appointed.


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In adopting any approach to employment screening it is also

important to consider the issues that may arise if the level of

employment screening is to be increased at any time in the future.

The need to manage such future issues may well create design

considerations that need to be managed now.

A comprehensive and coordinated employment screening process is

not an activity that should be conducted in isolation to other risk

management processes that operate within an organization. To

ensure that employment screening is integrated into normal business

processes, it is important that all areas of the organization and its

stakeholders are aware of the implementation and operation of

employment screening policies and practices.


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www.standards.org.au Standards Australia

1 Scope and generalThe following statement of scope is reproduced from AS 48112006

1 SCOPE

This Standard has been developed to form a basis for industry or organizational specific

screening policies and procedures. It applies equally to organizations in both the private and

public sector. Employment screening, for the purpose of this Standard, is the process of verifying,

with the consent of the individual, the identity, integrity and credentials of an entrusted person and

should apply to any individual that is, or will be, entrusted with resources and/or assets. Other

recruitment activities such as talent matching is beyond the scope of this Standard.

2 OBJECTIVES

A thorough employment screening process is an integral component of risk management and is

itself an effective way of minimizing and guarding against a range of potential risks. The objective

of the employment screening process is to ensure the integrity, identity and credentials of

personnel within an organization, and to provide assurance that people entrusted within anorganization are worthy of that trust.

3 LEGISLATION AND REGULATION

This Standard is complimentary to various Commonwealth, State and Territory legislation and

negotiations which impact upon employment screening.

When employment screening deals with reference to identified positions of trust and care, this

Standard is subject to any overriding statute and or regulations.

4 CONSENT

Employment screening should be conducted within the confines of relevant legislation and withthe informed consent of the entrusted person.

5 REFERENCED STANDARDS

AS/NZS 4360 Risk management

5.1 Relationship with other Standards

This Standard should be read, construed and applied in conjunction with the following Australian

Standards:

AS 8001 Corporate governanceFraud and corruption control

AS ISO 15489 Records management


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HB 3232007 8

Standards Australia www.standards.org.au

6 DEFINITIONS

For the purposes of this Standard the definitions below apply.

6.1 Chief Executive Officer

The most senior person responsible for the day-to-day running of the organization.

6.2 Credentials

Anything which is the basis for the belief or trust of others in a persons abilities.

6.3 Entrusted person

Any individual that is, or is targeted to be, employed within an organization that is, or will be,

entrusted with resources and/or assets.

6.4 Identity

To recognize or establish as being a particular person.

6.5 Informed consent

Consent provided following the provision of information relating to the conduct and requirements

of the screening process.

6.6 Integrity

Soundness of principle and character.

6.7 Organization

A group of people, such as a company, government department or authority or charitable body or

other group of individuals, working together towards specified goals.

6.8 Probity

The level of integrity necessary to ensure the conscientious and honest conduct of ones working

relationships and activities.

6.9 Shall

Indicates that a statement is mandatory.

6.10 Should

Indicates a recommendation.

Commentary

1.1 Scope

This Handbook sets out a broad framework and core processes for

inclusion in an organizations employment screening. It is based

upon the principles outlined in AS 48112006, Employment

Screening. This Handbook is intended to be used in conjunction with

this document.


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HB 323-2007 Employment Screening Handbook