New Employee's Missing Documents: How Should We Handle This Situation?

Hello,

In 2019, we hired a developer around 15 days ago. At the time of joining, we collected documents from her previous company (Xerox copies of pay slips, experience letter, and relieving letter). However, the candidate mentioned that her company would issue these documents in around one week, so she promised to provide them by the following Monday. We agreed, but now she is informing us that her company is not releasing her documents and is mistreating her when she requests for them.

Please advise us on what steps can be taken in this situation.

Hello,

Your post does not make it explicitly clear if the person has already joined.

If the person has, in fact, joined employment, perhaps your company should wait and watch her for honesty and transparency. If she fails on these counts, you have the right to terminate her employment at the end of the probation period anyway. Having allowed her to join, in all fairness, you must give her the opportunity to prove her honesty and integrity, especially as many times companies are unwilling to relieve a good employee, more so at relatively junior levels, acting like she is reporting. I think we are obliged to let her prove herself.

But if she has NOT joined, please formally communicate to her that she cannot join UNLESS she complies with document submission formality. Although, even in this case, you as an employer are free to let her join and watch her for honesty and integrity over the probation period.

A little unconventional thinking perhaps would have landed you at the same solution!

Cheers & Regards
Samvedan
July 20, 2009

She has already joined. My doubt is that if her previous employer can create any problem for her, as she has not received any relieving certificate from her previous company.

Dear [previous company],

Your company cannot create any problems if you allow someone to join without proper documents. It is essential to request all necessary documents before the individual starts working.

Regards,
JS Malik

Mr. Mallik,

I am also facing a similar situation... Do you think the previous employer can create any problem for us?

Waiting for your reply!

Call up the Company

Confirm the duration of the work

Record the same

You will get to know whether the employee has given true information or not.

Dear Swati,

Previous employers can create problems. An incident occurred at Axis Bank where an employee, who was originally hired from SBI, joined the bank with information stating he was currently employed at SBI. Everyone at the bank was aware of his background. However, upon joining, he was not provided with a written list of his belongings. Instead, he handed over his belongings to the personnel manager and signed the full and final receipt without collecting his relieving letter from the bank officials.

After two months, an FIR was lodged against the employee alleging that he had been absent for the past two months and had possession of locker keys belonging to both customers and the bank. This situation not only inconvenienced the customers but also tarnished the bank's reputation.

The police inquired with the Axis Bank manager regarding the basis on which the employee was hired. Subsequently, the manager was taken into custody for two days on the grounds of damaging SBI's reputation through collaboration with an employee from another bank.

Neither the employee nor the bank had proof that he had left the organization.

I advise reaching out to the employee immediately to request sending a registered post to the previous company and cc'ing the present company to obtain all relieving documents either via mail or email.

This matter should not be taken lightly. It is the employer's responsibility to thoroughly check all documents before hiring candidates and ensure verification by competent individuals.

Best Regards,

Sajid Ansari - Delhi

Swati,

A relieving letter from a previous employer is a very important document that can save your company from potential legal risks in the future. With the current issues of IP leakage and other critical business information being made aware to employees, a relieving letter helps the present employer safeguard their interests if the previous employer wants to proceed with legal action against the employee.

However, in this scenario, you can initiate a background verification to understand the reason for her exit and whether she has completed all her relieving formalities. If you receive clear verification, then take a declaration from the employee and close the issue. If not, it is better to insist on the relieving document. You can also communicate with the other company and ask them to clarify why they are withholding her documents.

My reply may differ from others, but it is based on the legal opinion I sought in a similar case during my tenure with another company.

Regards,
Ashok

Dear Swati,

You should not employ people until they submit their documents. Okay, anyhow, they have already joined. Please call the reference numbers provided by the employee to address and confirm your doubts.

Dear Swati,

Following answer/suggestion is based on my own experience.

1. Ascertain if the new employee is a valuable asset to your company or not. If yes, then retain him/her. There is nothing the previous company can do. It is only in rare cases that they try to create problems by raising imaginary issues to harass the employee.

2. In an aggressive scenario, "poaching" is quite common. Even in cases where 'bond' exists, the matter can be sorted out between the two respective HR heads.

3. In a particular case, the person was in software and belonged to the vendor/contractor. When a hue and cry was raised, it was explained to the other HR heads that:

- His employee is free to join any company, as he is not under any bond.
- There is no agreement between the two companies for non-poaching.
- If they want their people to be with them/loyal to them, then they should treat their employees accordingly, have their own retention strategies.
- It is immaterial whether they issue a relieving certificate or not; it is enough that the new employee has signed the joining report and is physically present for the job.
- "Slavery" or human trafficking is illegal in our country and in the civilized world.

4. The result depends on which company is bigger/stronger/has more clout.

I don't think a previous employer can create any problem for you. In this case, the candidate joining you might have some obligations to his past employer, but that doesn't mean that you have anything to do with the previous company.

Thanks, Srikanth

Hello,

Please provide me with a sample undertaking letter from the employee stating that if the previous company creates any problems regarding her exit, he will be liable for it.

Thank you.

You can do a thorough reference check with the candidate's previous company. I think that will answer all your queries.

Dear Swati,

What you are looking for is basically a form of INDEMNITY BOND; wherein the employee indemnifies your company from any action that his previous company may take with respect to his joining your company. For the format, you can ask your legal counsel, company's law officer, or lawyer retained by the company. The format is a simple one and about two pages long. It should ideally be executed by the employee on a non-judicial stamp paper of the requisite value and certified by a Notary Public. Once it is executed, your company becomes legally safe from any action by the previous employer.

Regards.