How Should We Handle Falsified Job References in Our Growing HR Department?

Respected seniors, I am working as an Executive in recruitment at an edible oil company. Although it's an Indian MNC, our HR department is only three years old, and the organization is in the transactional phase of formulating and implementing HR policies and systems.

Importance of Reference Verification

Among these, reference verification is crucial. Currently, we are verifying the past employment of new joiners in writing. However, we recently encountered a case of falsified documentation from a candidate claiming to have worked at a highly reputable company. What actions can we take? Please guide.

Regards,
Monu

Dear Alwar, I accept that what you said is true. Yes, give him a chance. But if that guy doesn't have an experience certificate, he should say so directly during the interview. Why hide it? Moreover, why produce fake references and resumes? It is unacceptable. Whoever is conducting the interview will understand if we explain why we won't get an experience letter or anything from the previous company. I don't think a well-reputed organization would refuse to provide an experience letter. It's better to speak the truth than to engage in fraudulent activities.

Regards,
Varsha

Procedure for Handling Falsified Experience Letters

Please consider the following procedure:

- Write to the company that has supposedly issued the experience letter, requesting validation.
- The company will respond, disowning the document and the data associated with it.
- Obtain a written statement detailing what is incorrect in the document. Include a reference from the person who validates this document. Keep it strictly data-oriented.
- Arrange a meeting with the employee and inquire about the documents.
- Listen to all the details he shares. He is unlikely to mention anything related to the fraudulent document.
- Confront him with the data received from the company and question him about it.
- He is likely to disagree with your claims, thus denying the entire fraud.
- You may give him time to prove his point or conclude the matter by presenting the final email from the company stating all the incorrect details in the document.
- At this point, the employee is unlikely to retaliate. Request him to resign at the earliest.
- Ensure you have a detailed incident report of this entire discussion and communication.
- Although these cases don't usually lead to litigation, it's important to maintain all the data with relevant documents.

Feel free to share your queries, and we will contribute to help you resolve this.

Wish you all the best!

Regards,
Cite Contribution

Since your company is in the transactional phase of formulating and implementing HR policies and systems, this is the time when you prepare the baseline. From an HR perspective, this is a case of gross misconduct, and integrity can never be compromised. Ask the employee for an explanation and terminate his services with immediate effect. Do not forget to have him provide an apology letter confirming the misdeed he has committed in writing.

I hope this answers your question.

Dear Seniors, Thank you very much for the suggestions. Actually, the individual holds a senior position and has the authority to use the company's letterhead and other important documents. Therefore, we are in a dilemma about whether to wait for his performance and risk potential misuse of these privileges in the meantime.

Furthermore, his previous employer has requested details of the information he provided to us so that they can pursue necessary legal action. Surprisingly, our Managing Director is currently unaware of these developments. When would be the right time to inform him?

Thank you.

Fraudulent Resumes in Banking and IT

There are plenty of resumes where we find fraud, mostly in banking and IT. We have come across several profiles like that.

What I suggest is that HR is not like cops or advocates. It's about Human Relations more than Human Resources. To err is human, and everyone wants to get a good job. Sometimes, due to bad luck or improper motivation, an employee may engage in indisciplinary actions.

Steps to Address Indisciplinary Actions

1. Confirm the date of the employee's appointment.

2. Identify who conducted the interview and the criteria on which the selection was based.

3. Evaluate the employee's performance since joining by gathering feedback from department heads, line managers, and colleagues.

4. Contact the employee's reporting head to assess the employee's value without initially disclosing the purpose of the inquiry.

5. Speak with the employee to understand their work values, concepts, and organizational development plans. If the employee is senior, informing them of the reason for the discussion beforehand may prevent offense.

6. Create a comfortable environment, actively listen, and explain the purpose of the meeting to the employee.

7. Following the meeting, discuss the outcomes with your superiors and top management.

8. Once a decision is reached by top management on the necessary actions, schedule a meeting between the employee and top management or proceed with immediate termination, if required.

Avoid immediate termination at the earliest opportunity. If termination is necessary, ensure that the clause is explicitly stated in the employee's appointment letter provided during joining. Refer to the appointment letter before making any decisions.

Though this process may seem time-consuming, it provides a more justifiable approach as both the employee and management can explain the rationale behind decisions or actions.

Regards,
Aryan
Senior Manager - HR Operations / ISO

We have come across such cases before. At senior positions, companies tend to believe the person and take their statements at face value. However, these are positions of "ubrama fadie" (hope I have spelled that right), which means - of utmost good faith. If a person in this position has a history of misusing their position and authority, especially for personal gains, they will likely do it again. It's a risk you can't take. Furthermore, the message that then trickles down to the subordinates is that the company is willing to accept fraudsters, people of improper character, etc., which is not the way it should be.

You need to inform the MD immediately. When you approach them, be sure to have all the necessary details with you to address any potential questions from the MD; otherwise, you may find yourself in hot water. If the previous company has requested details to initiate legal action, it might be wise to bring a copy of the email/letter from the company and show it to the MD.

We had a similar case at a client's office, where a person with a history of such behavior was hired despite assumptions that they were being victimized by the previous company or that their actions were a temporary deviation due to wrong motivation, etc., and that they were fundamentally a good and skilled individual. Our audit, conducted three years later, revealed that they had engaged in further fraud by misusing the company's letterhead for personal gains. We had to invest a significant amount of time in working with the banks to clear our client's name of any wrongdoing and reach a fair settlement.

I do agree with all the comments that other members have shared. What comes to my mind is: have we ever tried to focus on why any employee does such things? What makes them do these things despite knowing the facts about background verification? Why do we always value a candidate based on the experience they have, the companies they have worked for? Why don't we consider knowledge? And if we have considered knowledge, then why are we questioning it now? Why is years of experience always a criterion for any position that leads people to do such things? Faking things is a result of all this.

The Role of HR in Supporting New Joiners

Being in HR, how many times have any of us thought to help a new joiner? How many times have we given them what they actually deserve? If we can't help a person in their career like this, then why are we creating problems in their lives just for something fake? We should give a chance to talent, not to what a piece of paper says about someone. Judge the knowledge, not the papers.

Dear sirs, I disagree with the point that we should give a chance to him if he is performing well. It is a question of attitude more than aptitude.

Secondly, the poster of the mail conveyed that he is a senior man. Don't we think that seniors must behave and prove themselves as exemplary individuals and trend-setters? If one senior behaves like this, in what manner can we expect his subordinates to behave?

If management takes a stance that "if he performs well, leave him; and if he does not perform, fire him," it would be totally biased. This attitude of management is nothing but favoritism.

It is a matter of an attitudinal problem. There is no point in talking about the reasons behind "why this person is behaving in this fashion," etc. What guarantee do you have that he will not behave in the same manner in your company (new company) by falsifying other documents? He can forge a bank guarantee, he can fake cheque leaves, he can forge an authorization letter, and whatnot. Still, he might possess extraordinary knowledge and be a star performer.

It is a matter of whether you (as management) are for or against this attitude. If yes, apply the logic to everyone irrespective of their performance; if no, fire individuals regardless of their position (of course, following certain procedures).

Regards,
Balaji

I would suggest the following:

- First, generate a circular stating that the company is conducting background checks on all employees with their previous employers and references provided in their application.

- The circular must state that if any employee has any reservations, they must inform in writing of their concerns within one week; otherwise, it will be presumed that the employee has no reservations regarding the background check.

- Ensure the circular is signed by the MD.

- Await the responses and call all concerned employees who had expressed concerns one by one to discuss. Inquire about any alternatives they may suggest to verify their previous employment. Inform them that you will be handling the authentication process and emphasize that any false authentication will result in legal action.

This type of circular will initiate the process. Following conversations with the employees, you can determine the next course of action.

Regards,
K. Sambasivam
[Email Removed For Privacy Reasons]

Dear Monu,

First of all, I want to congratulate you on implementing the Reference Check procedure in the organization. I was recently watching a program on CNBC where they revealed the results of a survey conducted for Indian Corporates. It was found that 75% of the resumes which IT companies receive contain details of projects on which candidates have not worked or may not have been directly involved.

When a person at a senior level provides false information, it raises questions about their integrity. Especially when they can use the company letterhead, in my opinion, the only option left is to dismiss them from the organization. This is my personal opinion and may seem harsh to some of my senior colleagues, but it is based on my experience working with one of the leading finance companies with a nationwide presence, where we did not tolerate such unethical behavior from new entrants.

Secondly, as you mentioned in your earlier discussion, I suggest making your MD aware of this fact as soon as possible.

Warm Regards,

Shreyas Dave Muscat

Perfect flow of actions shared by Mr. K. Sambasivam! Just one more addendum: if this announcement is being notified as a circular, then it's important to put it on the notice board and intranet.

Regards,
(Cite Contribution)