Employer, recruiter equally responsible for bad hire

Agency failed to conduct background checks on employee who stole $260,000
By Jeffrey R. Smith
|Canadian HR Reporter|Last Updated: 02/21/2008

Staffing and recruitment agencies can be a big help for employers when looking for the right employee. But which one is liable if an employee turns out to be a bad seed?

Can an employer hold an agency responsible for not conducting due diligence? Or does all the blame fall on the employer’s shoulders, since it actually hired the worker? The answer, according to the results of one court case, is both.

The Ontario Superior Court of Justice recently ruled on a case that involved a company that used a staffing agency that didn’t live up to its duty when it recommended an employee with a criminal past who then defrauded the employer out of nearly $260,000.