Employment legislation varies from state to state. In some places, no reason is required for an employee’s termination, and in other places, its reason must be extensively documented. Staffing agencies typically employ associates on a temporary basis, so there can be additional complications involved in handling employees. If you manage a staffing agency, you should invest in employment practices liability coverage to ensure you are not the subject of a wrongful termination lawsuit.
Secure Coverage Against Litigation
Your employees may be compelled to take legal action at the end of their contract of employment. Since temporary staffing involves tenuous schedules and little security, assignments come to an end unexpectedly often. Though this may not entail an actual termination, employees may still take action based on the sudden loss of work. Communicating expectations clearly to your associates is the best way to prevent this, but investing in employment practices liability insurance is the only way to truly protect yourself against litigation. Choose a policy that addresses these common causes of employment termination:
- End of temporary contract
- Client ceases contracting agency
- Temporary employee is dismissed by client
- Poor work performance
You shouldn’t be subjected to a lawsuit that will impede your business, and with insurance, you can protect yourself from any litigation that may be thrown your way.