Existing employer credit check

unsure100

I (and others) have been informed that our employers want to credit check everyone?

Our exisiting contracts do not mention this and most have worked for the company for four years plus

Is this right?

http://chicchater.co.uk/archives/2160

creditcardhelp11

It depends if there is a genuine and reasonable basis for the employer to do this, are you working in the financial services sector?

It is important to note that the employer can usually only look at publicly available information. This would include information on the electoral roll, county court judgments, bankruptcy and individual voluntary arrangements which are legally enforceable deals struck with your creditors to repay them some of your debt over a fixed period. So they should not look at credit agreements etc….

SarEl

Like a lot of things it is only partially correct.

Your employer cannot force you to agree to a credit check, no.

They could change your terms and conditions to enforce a credit check, and if you refused the change they could dismiss you (in law, it actually a resignation, but this isn't a detail you need to worry about right now!). Such a dismissal may be unfair - but frankly it isn't something that I would particularly want to argue in a tribunal, because there is a real risk of losing. A tribunal may well (and probably would) take the view that throwing over one's job on a point of principle which is relatively minor is not something you should have done. But this can only be tested in a tribunal - utterly nobody could absolutely predict the outcome for you, so it is a very risky route to take unless you are genuinely prepared to risk your employment over this.

The other obvious issue (which would significantly improve the employers chances of winning at a tribunal - although I would think they were pretty high even if this isn't the case) would be why they want to do this. If there is a good business reason - new contracting terms or a client requirement, for example - then I would suggest that a tribunal would absolutely support the change, as opposed to probably support it.

Obviously, if all the staff refuse collectively then there may be more chance (assuming there isn't a clear business reason) of persuading the employer not to do this; and if they are going to do it anyway, the greatest mileage may be achieved by arguing about what use will be made of such information and how or if it will be stored.

unsure100

They have now said that only 1 in 10 existing employees over 3 years employment with the company will be credit checked?

SarEl

unsure100 wrote: »

They have now said that only 1 in 10 existing employees over 3 years employment with the company will be credit checked?

Yes - but the answer is still the same!

Have they said why they want to do this?

unsure100

Is 1 in 10 not discrimination?

They have said the fsa want it even though we don't give financial advice but do have some general finance products

cr1mson

I am sure someone more au fait with the legal world will reply but would have thought 1 in 10 would be fine as long as criteria for selection were not discriminatory. Thinking along lines of QC procedures where 1 in 10 transactions are checked.

C

unsure100

They cut our wages in half this year now they want to make sure we aren't in financial difficulties (we all are since the wage cut)?

SarEl

unsure100 wrote: »

Is 1 in 10 not discrimination?

They have said the fsa want it even though we don't give financial advice but do have some general finance products

No discrimination of an unlawful type there.

And that's your answer - the FSA are requiring them to do it, so if that is the case you have no choice but to agree or risk your job.

unsure100

I have emailed the FSA and they responded by saying they have no interest in our roles as we do not give financial advice (i.e mortgage advisor, accountant etc)

SarEl

Uh huh. Going to call your employers liars then? Seriously?