The Worker Protection Act and ECCTA: Vetting’s Essential Role

In Episode 5 of EBC Global’s Webinar Series, we delve into the critical role that vetting plays in navigating the complexities of the Worker Protection Act and the Economic Crime Corporate Transparency Act (ECCTA).

Whether you’re new to these regulations or aiming to optimise your current processes, this episode is packed with actionable insights and practical tips to help you stay compliant and ahead of the curve as new requirements come into force.

Missed the webinar? No worries! You can watch it here to get the full picture.

What is the Worker Protection Act?

The Worker Protection (Amendment of Equality Act 2010) Act 2023 (WPA) came into force on October 1st, 2024, marking a significant step towards creating safer workplaces across the UK.

This legislation was introduced in response to alarming statistics from a recent TUC survey, which revealed that 6 out of 10 women, 70% of disabled women, and 70% of LGBT workers have experienced sexual harassment at work.

These figures highlight the urgent need for robust measures to protect employees from such misconduct.

Learn more about the Worker Protection Act (WPA).

Key Provisions of the Worker Protection Act

The WPA mandates that all UK employers take proactive steps to prevent workplace sexual harassment. This includes implementing comprehensive preventative policies and practices. Here are some of the key provisions:

• Legal Duty to Prevent Sexual Harassment: Employers are now legally required to take reasonable steps to prevent sexual harassment. This duty extends to interactions with third parties, such as customers, contractors, and suppliers.
• Simplified Reporting Process: The Act simplifies the process for reporting incidents of sexual harassment. Research indicates that 4 out of 5 incidents go unreported, so the WPA mandates the establishment of clear and accessible reporting channels. These include digital platforms for anonymous reporting, dedicated HR contacts, hotlines, and online portals.
• Enhanced Compensation for Victims: Victims of workplace harassment are eligible to receive 25% more compensation from tribunals if it is found that their employer did not take preventative steps.

WPA’s Impact on HR and Staff Vetting

The WPA has significant implications for HR and staff vetting processes. Employers must develop comprehensive policies, train managers, and create a safe environment for employees to report incidents.

Thorough vetting is the first line of defence in preventing workplace harassment, and the WPA underscores the importance of background checks and ongoing monitoring to ensure a safe working environment.

• Enhanced Screening Processes: Employers must adopt enhanced screening processes using modern background check tools to identify potential risks early on. Social media and open-source internet (OSINT) checks play a critical role in detecting risks associated with employees and potential hires.
• Ongoing Monitoring: Continuous vetting and re-checks are essential to mitigate the risk of harassment. People change, their circumstances change, their mindset change – this proactive approach around ongoing screening is the most effective way of maintaining a safe and respectful workplace.
• Policy Development: Create and implement policies that clearly define sexual harassment and outline the responsibilities of all employees in preventing it.

The introduction of the Worker Protection Act 2024 is a pivotal moment for workplace safety in the UK. By taking proactive steps and leveraging advanced vetting processes, employers can create a safer, more respectful work environment for all employees.

What is the Economic Crime Corporate Transparency Act?

The Economic Crime and Corporate Transparency Act (ECCTA) 2024 aims to combat fraud and enhance corporate transparency in the UK. With fraud rates surging, this Act introduces comprehensive reforms to prevent fraud and improve corporate transparency.

Learn more about the Economic Crime and Corporate Transparency Act (ECCTA)

Background of the ECCTA

Fraud has surged by an alarming 1,400% over the past decade to £2.3bn in 2023. In response, the ECCTA introduces comprehensive reforms to prevent fraud and improve corporate transparency.

These reforms include expanding the powers of Companies House, strengthening identity verification, and imposing unlimited penalties for failing to prevent fraud starting from September 2025.

Key Principles of the ECCTA

Unlike prescriptive procedures, the ECCTA introduces six key principles designed to guide companies in implementing effective anti-fraud measures:

1. Top-level Commitment: Ensuring that senior management is committed to preventing fraud.
2. Risk Assessment: Regularly assessing the risks of fraud within the organisation.
3. Proportionate Risk-based Prevention: Implementing measures that are proportionate to the risks identified.
4. Due Diligence: Conducting thorough checks on employees, agents, and other associated persons.
5. Communication: Ensuring clear communication of anti-fraud policies and procedures.
6. Monitoring and Review: Continuously monitoring and reviewing the effectiveness of anti-fraud measures.

These principles ensure a comprehensive and proactive approach to fraud prevention.

Key Provisions of the ECCTA

The ECCTA introduces several key provisions aimed at preventing fraud:

1. Failure to Prevent Fraud Offence: Employers can be held liable for various forms of fraud, including insider trading, false representation, and false accounting. This offence applies not only to staff but also to associated persons such as agents and consultants.
2. Enhanced ID Verification: New requirements for identity verification of company directors and increased transparency in company ownership.
3. Unlimited Penalties: Emphasising the seriousness of compliance, the Act imposes unlimited penalties for failing to prevent fraud.

ECCTA’s Impact on HR and Staff Vetting

The Economic Crime and Corporate Transparency Act (ECCTA) necessitates enhanced screening processes and identity verification, making vetting the first line of defence. There are many similarities in common with provisions for dealing with the Worker Protection Act provisions:

• Policy Development and Training: Employers need to develop comprehensive policies, train managers, and create safe reporting environments.
• Enhanced Screening Processes: Employers must adopt modern background check tools to identify potential risks early on.
• Ongoing Background Checks: Continuous vetting and re-checks are essential to maintain a safe working environment.
• Compliance and Monitoring: Regular screening audits should be conducted, reviewing and auditing every step of the vetting process, as well as the final reports, to ensure they meet with internal and best practice compliance requirements.

Broader Implications

The ECCTA’s reach extends beyond the UK. The “failure to prevent fraud” offence can apply to organisations overseas if a relevant event occurs in the UK. This extra-territorial reach underscores the importance of global compliance with the Act.

The Economic Crime and Corporate Transparency Act 2024 is a landmark legislation that significantly enhances corporate integrity and transparency. By adopting the principles and provisions of the ECCTA, companies can more effectively prevent fraud and ensure compliance with this critical legislation.

Combined Impacts of Acts on Pre- & Post- Employment Screening

Enhanced Due Diligence

Traditional background checks are no longer adequate for many employers. For instance, references now rarely offer an evaluation of an employee’s performance or character, concentrating solely on basic and factual details. Additionally, despite 1 in 4 people in the UK having a criminal record, the introduction of DBS filtering rules has significantly reduced the usefulness of criminal checks for employers, as many convictions that would have been reported just a decade ago are no longer being disclosed.

Consequently, employers are advised to adopt advanced modern screening tools such as adverse media and social media checks to identify potential risks early. Checking for conflict of interest by undertaking directorship checks on employees is another highly effective risk mitigation tool. This proactive approach aids in detecting fraudulent activities before they can cause harm.

Organisations that only look to run background checks on permanent employees are potentially leaving huge gaps in risk mitigation against both fraud and harassment.

Enhanced due diligence requirements are a cornerstone of the ECCTA and this involves thorough checks on all associated persons, including employees, agents, and consultants. By ensuring that everyone connected to the organisation is vetted, companies can significantly reduce the risk of both fraud and sexual harassment.

Policy Implementation

Implementing and regularly reviewing policies for both anti-fraud and anti-harassment are crucial for maintaining a safe and transparent workplace.

Effective policies provide clear guidelines and expectations, helping to prevent misconduct and fraud.

Regular staff training and awareness campaigns are essential to ensure that all employees understand these policies and their roles in upholding them.

Continuous education fosters a culture of vigilance and accountability. Additionally, periodic review and revision of these policies are necessary to adapt to evolving risks and regulatory changes, ensuring that the measures remain effective and relevant.

This proactive approach not only mitigates risks but also demonstrates a commitment to ethical practices and employee well-being.

Impact on Vetting

Continuous vetting and monitoring of risk are essential if organisations are taking prevention of fraud and harassment seriously. Regular re-checks and updates to vetting processes ensure that any new risks are promptly identified and addressed.

The approach of solely pre-screening employees with traditional background checks is simply no longer sufficient.

Social media checks, for example, are highly proficient at recognising indicators such as discriminatory language, illegal activities or inappropriate content that could point to potential harassment or fraud.

Both Acts highlight the necessity for ongoing staff vetting to continuously monitor and mitigate risks, including the importance of vetting not just staff and new hires, but also third parties like contractors, agents and consultants.

This comprehensive approach ensures a safer work environment, aligned with best practice guidelines covering both Acts.

By adopting each of these key measures, companies can effectively prevent fraud and comply with the new legislation, ensuring a safer and more transparent corporate environment.

What Does Bad Practice Look Like in 2025?

In 2025, failing to update and modernise your screening policies and programmes can have serious repercussions.

Outdated screening methods, such as relying solely on document collection for references and credentials, are no longer sufficient.

Slow turnaround times for completed screening reports and checks can lead to delays in hiring and onboarding, negatively impacting your organisation’s efficiency.

Poor technology not only hampers the screening process but also results in a poor candidate experience, which can deter top talent. Additionally, a lack of customer service and candidate support can leave both parties frustrated and dissatisfied.

Non-compliance with current regulations and a lack of investment in modern screening tools and processes can expose your organisation to significant risks.

Finally, the absence of re-screening or ongoing vetting means that potential issues may go undetected, leading to serious consequences down the line.

The Consequences of Inadequate Screening – Learning from Other’s Mistakes

Recent high-profile cases in 2024 highlight the critical importance of thorough and ongoing screening.

Tanya Nasir, an NHS employee, was found to have falsified her qualifications, resulting in a severe five-year conviction. This serious offence could and should have been detected by effective background screening, preventing significant repercussions for the healthcare provider.

Similarly, Dean Carelse, who worked as a children’s lifeguard at Butlins, was discovered to be a convicted paedophile overseas. However, Butlins’ inadequate screening policy only called for UK criminal record checks, highlighting a significant policy failing that allowed a dangerous predator to be employed.

Most recently Rachel Reeves, holding the second highest government Office as Chancellor of the Exchequer, also faced scrutiny over inaccuracies in her CV, raising questions about her experience, honesty and credibility.

These examples all underscore the necessity of robust screening processes and policies to verify credentials and ensure the integrity of employees. Without effective screening, organisations risk hiring individuals who may not be qualified or trustworthy, leading to potential legal, financial, and reputational damage.

And our Survey Said…

83% of respondents to our polls reported being both unfamiliar with, and unprepared for the new WPA and ECCTA legislation.

The top 3 implementation concerns from employers about preparing for the legislation were:

1. Understanding the new legislative requirements and their impact on HR and vetting;
2. Preparing your organisation for changes with training and implementing policies;
3. Introducing an ongoing vetting (re-screening) programme for employees.

Read on to hear how we can help.

What’s Next?

Mark your calendars for the next episode in the EBC Global webinar series:

From Outdated to Outstanding: Enhancing Your Background Screening Policy for Safer Hiring Practices
🗓️ Date: 28th January 2025
⏰ Time: 12:00 PM (UK Time)
🔗 Register Here

Don’t miss out — follow us on LinkedIn and subscribe to our mailing list for the latest updates as we continue enhancing our platform’s capabilities.

Don’t forget to tune in to the previous episodes of our webinar series if you haven’t already—they’re packed with insights on compliance, background checks, and the latest industry updates!

Chat with the Team!

Have questions? Need personalised guidance? Our team is here to help! Whether you’re considering adopting a new screening programme, or want to explore how our platform can simplify your screening processes, we’re just a message away.

Reach out via email or schedule a one-on-one call with one of our experts. We’re passionate about helping you stay compliant, efficient, and ahead of the curve!

Q&A

Q: How common is re-screening now in the UK?

A: Re-screening, also known as ongoing vetting, is a common and crucial practice in the UK, mandated across many sectors to ensure continuous compliance and security. With the right tools and processes in place, it is straightforward to implement and maintain.

Ongoing staff vetting is now standard practice in the UK, extending background checks beyond initial screenings. This approach increasingly maintains a secure and trustworthy workforce.

Various sectors, including finance, healthcare, education, and national security, now widely adopt ongoing vetting. In many of these sectors, it is not just a best practice but a mandated requirement. The financial sector requires continuous employee monitoring to prevent fraud and ensure legal compliance. Similarly, the healthcare sector mandates regular checks to safeguard vulnerable populations.

Implementing ongoing vetting is not as daunting as it may seem. Modern technology and digital solutions have streamlined the process, making it efficient and cost-effective.

Q: What is the definition of a large organisation in relation to ECCTA?

A: The Economic Crime and Corporate Transparency Act (ECCTA) 2023 defines a “large organisation” as meeting two or more of the following criteria in the financial year before the relevant fraudulent offence:

1. The organisation has a turnover of more than £36 million.

2. The organisation has a balance sheet total of more than £18 million.

3. The organisation has more than 250 employees.

Q: Are Social Media Checks legal in the UK?

A: Social media checks are legal in the UK if they comply with data protection laws, are relevant, and do not cause discrimination.

Employers must process social media data lawfully, fairly, and transparently, following the UK Data Protection Act 2018 and GDPR.

The information gathered should be pertinent to the job role and not excessive, avoiding unnecessary personal data collection.

Using an outsourced partner for social media checks can significantly reduce the risk of discrimination. In-house staff conducting checks may unknowingly introduce bias into the recruitment process by viewing information they cannot unsee.

An outsourced partner can objectively and impartially assess information, ensuring consideration of only relevant details and minimising personal biases.

Additionally, outsourcing social media checks can streamline the process and ensure compliance with legal requirements. Professional vetting services understand data protection laws and handle checks efficiently, securely, and compliantly. This approach not only helps in maintaining fairness and objectivity but also saves time and resources for the employer.

By following these guidelines and outsourcing, employers can ethically use social media checks to improve recruitment while respecting candidates’ privacy and rights.

Additional Resources

• Everything You Need To Know About WPA
• Everything You Need To Know About ECCTA
• ECCTA: Guidance to organisations on the offence of failure to prevent fraud (GOV.UK)
• ECCTA: failure to prevent fraud offence – Policy Paper (GOV.UK)
• WPA 2024 – New protections from sexual harassment come into force
• Find Anton Watson