Existing Employer Credit Check - Help Required

Erimus196 · 26 September 2017 at 1:44PM

Hi there,

Bit of a strange one, about six ago my employer rolled out adverse financial checks for new starters in key roles.

However, they've announced they plan to roll these checks out to existing employees, I do have a CCJ from a few years ago for an old debt from when I was made redundant.

Is my employer allowed to credit check existing employees without consent?

Can they take action if they find anything averse?

I'm planning on being upfront about the whole thing however; I have a really good job and I've gone from feeling v comfortable here to having a little panic in the space of a few hours!

tenchy · 26 September 2017 at 2:01PM

It is my understanding that, contrary to popular belief, no consent is needed at all for credit checks to be carried out. Any organisation can do it provided they have a valid reason. This is the position of the ICO.

Candyapple · 26 September 2017 at 2:11PM

Do you work in the financial sector?

Is having a clean credit history a requisite of your job/role?

I would check your contract regarding the above in case it is a requirement and if you were found to have adverse data that could lead to you being fired.

Erimus196 · 26 September 2017 at 4:00PM

Not in financial services. I do control a large budget.. lots of 0's

There's nothing in the contract. This is a change to the employee's handbook.

Comms69 · 26 September 2017 at 4:04PM

CCJs are public records so no consent is required.

Depending on how long you've worked there, dismissal could be a possibility (though in practice unlikely)

nic_c · 26 September 2017 at 9:17PM

Has the CCJ been satisfied or is the debt still been paid, or is the total amount outstanding. You are managing a large budget, so I guess they are trying to see if you are in money trouble and tempted to abuse your position to solve your troubles. If the debt has been paid off or still been paid I can't see any problem, especially if there was no requirement to disclose it.

Erimus196 · 26 September 2017 at 9:58PM

It was for quite a small amount <£2,000.00. I've been paying it off quicker then the CCJ but haven't gone out of my way to satisfy it.

It was an old account that due to a bit of a perfect storm after redundancy was missed.

I'm just surprised that they would be able to make such a change to a our contracts without consultation - but I'm going to get in touch with ACAS I think.

Sarastro · 27 September 2017 at 7:11AM

https://www.citizensadvice.org.uk/work/rights-at-work/basic-rights-and-contracts/changes-to-employment-contracts-overview/

There are limited circumstances in which your contract can be changed without your agreement. Does your contract contain a clause which allows for future amendments without consultation? If your current contract doesn't contain such a clause and no other clauses about doing a credit history check, then you're in a good position to ask some suitably awkward questions about the lack of consultation.

What is the purpose of the policy to check credit histories? Is the company trying to identify employees who might be a risk of committing a criminal act in order to protect them, itself or both? Is the company going to carry out these searches on everyone or just 'large budget' holders? If so, why? How will the company use the information?

The use of credit checks might be justifiable but the application of the policy is fraught with issues. They will have to comply with Data Protection Act and Employment Law in terms of actually using the information they find. It's difficult to see how they might use the information objectively - you're a good example. A poor credit history is not evidence of likelihood to defraud the company. And amendments to Contract or your job responsibilities on the back of it (e.g. if they took budgetary responsibility away) may mean you can't do your job and have to resign; which sounds a lot like a constructive dismissal case. A poor credit history also isn't evidence of a lack of professional competency: there are lots of reasons for a poor credit record (which may have been beyond your control at the time) so couldn't be used to justify a change to your duties, particularly if you've been doing them perfectly well up to now as evidenced in your annual appraisal.

I would have thought most HR Managers would be unwilling to introduce this without consultation given that any changes made as a result of the credit search (dismissal, or variations of contract) could very easily lead to Constructive / Unfair Dismissal claims. Would be okay if added to contracts of new employees going forward.

Erimus196 · 27 September 2017 at 8:31AM

Wow thank you for taking the time to write that Sarastro.

I think you've confirmed what I believe in terms of their scope and ability. All of our commercial department are to be checked. Several hundred staff.

The whole idea is to protect against fraud. The irony being that I actively have to police against corruption in the business and have a reputation for being whiter then white from my time in a previous business.

I don't actually think I'd lose my job having slept on it but it feels like an invasion of privacy and I wouldn't have moved to this job had I known about the check.

There is a consultation process. I'll be asking plenty of questions.

Thanks again.

Candyapple · 27 September 2017 at 10:31AM

How long have you been employed by the company for?

GeoffSpar8 · 27 September 2017 at 11:24AM

We were going to do this at my firm. We got a legal opinion as to whether we could or not and as long as we had a reasonable and valid reason, it was regarded as legally watertight.

Existing Employer Credit Check - Help Required

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