Employee certifications are an essential part of the modern workplace and vital for compliance.
While ensuring your employees are appropriately qualified to do their jobs may seem straightforward, keeping track of the status of their relevant certifications can be a challenge for many employers – and one that can be easily overlooked.
The consequences of non-compliance arising from expired employee certifications or inadequate training affect every industry and can result in:
- Large financial penalties and fines for breaching regulations.
- Loss of productivity and revenue.
- Government sanctions and license suspensions.
- The risk of injury and potential lawsuits due to an unsafe working environment.
Some sectors are exposed to higher risks, including IT, healthcare, construction and manufacturing. The following are some examples:
Healthcare : Healthcare facilities and hospitals require employee certifications to be tracked and tested on a regular basis to confirm their validity. Lapsed certifications may lead to financial penalties and suspension of business. Nursing certifications, including ACRN, CPN, CRNA, AOCN must also be monitored to ensure safety and validity.
Construction, Manufacturing and Engineering : All organizations must ensure up-to-date certifications for employees operating forklifts and machinery. This is vital for those working on government projects and to comply with OSHA (Occupational Safety & Health Administration) standards.
IT : Digital transformation and the increasing strategic importance of data continues to have a major impact on compliance. Gartner’s annual Audit Plan Hot Spots report notes that cybersecurity, data governance, third parties and data privacy top the list of audit risks in 2019. All of these areas need careful monitoring to ensure employee certifications meet all current requirements. Tech organizations such as Microsoft and Cisco have numerous levels and tiers of employee certifications required to ensure compliance.
3 Key Benefits of Maintaining Employee Certifications
Employers cannot afford complacency in this area. In addition to the reduced risk of penalties and costs, ensuring your employee certifications are up-to-date offers a broader range of benefits, for example:
- Ensuring employee certifications and training are up-to-date demonstrates your commitment to your employees and your customers. At the same time, it also enhances both client trust and employee engagement.
- Some companies fail to maintain compliance due to the pressure on resources and perceived costs involved but the cost of non-compliance is significantly higher. A 2017 study reports the cost of non-compliance as $14.82 million, compared to $5.47 million for compliance.
- When employee certifications are compliant this can help to improve safety within your working environment. To put this into perspective, the cost of workplace injuries to employers currently stands at an estimated $1 billion per week in the US.
The Most Effective Way to Manage Employee Certifications
Despite the dominance of technology in the workplace, many organizations still rely on manual methods and spreadsheets such as Excel to ensure their employee certifications are up-to-date. There are several issues related to manual processes which do not update automatically or flag certifications which are approaching renewal.
But perhaps the most significant concern is the high risk of human error. Some studies suggest as many as 90% of spreadsheets may contain errors. In an area which affects compliance, this exposes your company to potentially serious risks.
An effective employee certification management process supported by dedicated certification tracking software offers the following:
- Storage of all records of certification in one central, easily accessible database.
- Assigns relevant training and certifications to individuals based on their position and responsibilities within your company.
- Records are updated automatically.
- Notifies managers and employees of certifications that are reaching their expiry date. Forthcoming renewal dates are flagged early, giving HR plenty of time to ensure compliance and identify areas for additional training.
- Easily verifies certification to customers and suppliers for reassurance.
- Keeps an up-to-date record of current certifications.
Avoid the hidden risks of non-compliance. TalentGuard’s Certification Tracking software offers a reliable solution that enables companies to assess their risk exposure and certification obligations.
Perhaps the first and most obvious consequence is the possibility of the organisation being fined for non-compliance. Fines for the most serious safety breaches are now routinely in the hundreds of thousands of pounds. Coupled with the need to pay not only your own legal costs but also those of the prosecution, non-compliance with legislation is a costly exercise.
Imprisonment
Individuals can be imprisoned for breaches of health and safety law, with sentences of up to six months in the Magistrates’ Courts and up to two years in the Crown Courts.
Even individuals that avoid a custodial sentence will have to live with the stigma of a criminal conviction, which could restrict their ability to work in certain industry sectors or travel abroad.
Remember, both employers AND employees can be prosecuted under criminal law, sometimes simultaneously.
Loss of Reputation
Any organisation which fails to comply with legislation runs the risk of a loss of reputation and with it the loss of customers.
Increasingly, companies look carefully at the safety record of potential business partners and requests for details of any safety convictions have become standard on tender questionnaires.
The damage caused to an organisation’s reputation by a criminal conviction could last longer than the initial financial outlay.
Loss of Current or Potential Staff
If you were applying for a job with a company whom you found had been prosecuted under Health & safety legislation, or who been found to have broken employment or human rights law, would you think twice?
You probably would not want to work for an organisation which had a poor record in these areas and so your expertise and knowledge would be lost to the company.
Down time and Loss of Productivity
Breaches of certain laws often result in an organisation having to cease production until the errors have been rectified. This loss of production will inevitably result in a loss of income which, in a worst case scenario, could result in the company going out of business.
You may now be able to see how important it is that an organisation remains compliant with all legislation. With the emphasis on health and safety that comes with facilities management, coupled with other areas such as employment and human rights laws, the Facilities Manager plays a key role in enabling the organisation to remain compliant.
Health and safety legislation are designed to decrease the risk of accidents and fatalities in the workplace. When employees fail to follow these regulations, it is often due to the failure of the employer to provide a safe working environment or proper training.
The Workplace Health and Safety (WHS) legislation does not cover penalties for employees who do not comply with safety regulations. In most cases involving a safety violation, the employer takes responsibility. However, there are exceptions, such as acts of gross misconduct.
Most people do not fully understand the potential consequences if an employee does not comply with health and safety regulations. The following information should help clear up any confusion.
Why Do Breaches Happen?
Most breaches are the result of a lack of training or inadequate safety measures in the workplace. Compliance is the employer’s responsibility. The employer must ensure that employees have the necessary skills, knowledge, and resources for dealing with potential hazards and risks.
According to section 25 of the Work Health and Safety Act, employees must take reasonable care for their own safety and, of course, the safety of others. They must also cooperate with the employer to comply with any requirements of the OHS Act.
Section 21 of the WHS Act details the duties of employers. Employers must maintain a safe work environment that is without health risks, as far as reasonably practicable. This typically requires the employer to:
- Provide access to safe machinery and tools
- Ensure that employees can handle and transport materials without health risks
- Provide access to adequate facilities, such as washrooms and first aid
- Provide access to training and safety information so that they can work safely
To ensure that they comply with safety regulations, employers are also required to monitor the health of the employees and the conditions of the workplace. Employers must also allow employees to select a health and safety representative (HSR). The HSR has the right to issue a prohibition notice when they detect safety violations.
When employers fail to uphold their duties, employees are more likely to breach health and safety regulations. For example, if an employee does not have the right training or equipment for removing asbestos, they are more likely to violate safety regulations related to asbestos removal.
In most situations, the employer is the one that may face consequences of non-compliance with health and safety. However, if an employee intentionally fails to comply with regulations despite having adequate equipment and training, the employer has the right to follow dismissal procedures.
What Are the Categories of Offences?
The Workplace Health and Safety (WHS) Act created four categories of offences for breaches of the work health and safety legislation:
- Industrial manslaughter
- Category 1
- Category 2
- Category 3
Industrial manslaughter is the highest category of offence. It occurs when the negligence of the employer or senior officers results in the death of a worker. The maximum penalty for an individual is 20 years imprisonment. The maximum penalty for a corporate body is $10 million.
A Category 1 offence is a serious breach involving reckless behaviour that creates the risk of death or serious injury. Penalties for Category 1 offences include fines up to $3 million for corporate bodies, $600,000 for PCBUs, and $300,000 for individuals. PCBUs, senior officers, and individuals may also face up to five years imprisonment.
A Category 2 offence is defined as the failure of an individual to comply with their health and safety duties resulting in the risk of death or serious injury. PCBUs may face fines up to $300,000 and employees may receive fines up to $150,000.
A Category 3 offence is the failure to comply with a safety duty when the violation does not create the risk of death or serious injury. Individuals may face fines up to $50,000, PCBUs may be fined up to $100,000, and corporate bodies may be fined up to $500,000. However, minor offences may simply result in spot fines with smaller penalties.
Along with the penalties listed, the Court may also order the employer to follow a “Health and Safety Undertaking.” The enforceable undertaking may last for up to two years and requires the employer to avoid any further safety breaches.
What Is the Right Course of Action?
When an employee fails to comply with safety legislation or codes of practice, the employer should begin an investigation into the violation. If the investigation determines that the violation was due to a breach on the employer’s part, the employer should take corrective disciplinary action to prevent the safety breach from reoccurring.
If the internal investigation finds that the employee is at fault, the employer typically issues a written warning or a provisional improvement notice (PIN). Employees must be given the chance to correct their behaviour, as with dealing with an employee that is frequently late.
Multiple warnings may result in the dismissal of the employee. After giving the employee a chance to correct their behaviour, the employer may choose to dismiss the employee to prevent any further breaches of health regulations. However, maintaining a record of warnings for past violations is necessary when dismissing an employee, as they may file a claim of unfair dismissal with the Fair Work Commission (FWC).
How Can Courses Help?
Training courses can help employers reduce the occurrence of breaches of health and safety at work. When employees understand the correct procedures for dealing with various hazards and risks, they are less likely to violate safety regulations.
In Australia, employees may receive industry-standard training through registered training organisations (RTOs), such as AlertForce. Completing a training program provides employees with the skills and knowledge needed for maintaining safe work conditions.
AlertForce offers training courses for every industry. Asbestos awareness, fatigue management, confined space, working at heights, and white card training are just a few of the available courses.
Conclusion
In the end, employers are ultimately responsible for the safety of their workers and work sites. Every employee should receive access to the necessary equipment and training to manage health and safety hazards.
When a serious breach occurs, the employer may face consequences, including monetary penalties. This creates an incentive for employers to comply with all applicable health and safety laws.
It is up to the employer to determine whether the employee should be dismissed for non-compliance. However, if the employee brazenly commits gross misconduct, such as fighting or stealing, immediate dismissal is often the recommended course of action.