Handling Fake Experience Certificates: Can We Terminate Without Notice and Withhold Salary?

Dear All,

I have a query regarding a fake experience certificate.

We received negative feedback from one of our newly joined employees. He has already been appointed in our company and has been working for the last two months, with his salary currently on hold. It has come to our attention that the certificates he submitted are fake. Could anyone please guide me on how to handle this situation? Can the company terminate him without giving one month's notice (as per the appointment letter) and withhold his two months' salary?

Regards,

Alok Singh

Hi Alok,

As per the Payment of Wages Act 1936, the Minimum Wage Act 1948, the Factory Act 1948, and the Industrial Dispute Act 1947, every employer shall be responsible for the payment of wages required under these Acts. Only the minimum wage of a skilled worker can be withheld; no other facilities or fringe amounts should be withheld.

Thank you.

Hi Alok,

As per the Payment of Wages Act 1936, Minimum Wage Act 1948, Factory Act 1948, and Industrial Dispute Act 1947, every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under these Acts. Only you can withhold the facilities or fringe amount other than the minimum wage of skilled workers. Termination or dismissal depends on your company's standing order.

Hi,

If an employee provides false information during their employment, management can dismiss them from their position and take appropriate action, such as reducing their salary to a basic level.

However, if your organization wishes to retain the individual, you must proactively investigate their actual experience, qualifications, and past salary from previous employers. Compare this information with the credentials and salaries of your current staff in the same department. Then, adjust the salary accordingly. For instance, if an HR executive with two years of experience and an MBA certificate is earning 5000 Rs in your company, a fraudulent individual with the same credentials should also receive 5000 Rs to avoid breaching the principle of equal pay for equal work.

Ultimately, the decision rests on the potential discrimination by the management and the policies outlined in your HR handbook to address such situations effectively.

Kind regards, [Your Name]

Hi there,

Before you just fire people, you have to open an official investigation where you give the employee an opportunity to defend themselves. However, you have to do your part first.

• Request the employee to provide you with original certificates.
• Use logic in your investigation.
• Start with the high school certificate and compare it with the dates provided in the certificate.
• Call the old organization and ask if they really know this person and if they provided a genuine certificate of experience.
• Once you have collected your evidence and have proof from your end that this person committed fraud on two levels:
1. Provided wrong information about themselves.
2. Stole information from someone else who would have benefited from the employment provided by using their details, irrespective of whether the person is interested in it or not.
• Have a panel interview the person. If they have no logical reasons for committing this fraud, this person should be immediately removed from the organization as you don't know what other frauds they are capable of committing, and the organization's reputation is at stake.

Let this be a lesson: next time you employ someone, ensure you at least take a look at their original certificate provided before you give them an offer and add them to your team.

Why is his 2 months' salary on hold? If he has falsified his records, then it is grounds for dismissal after obtaining proof of the falsification. However, I can't see how you can deny the employee wages for the time worked for you.

What do you mean by "We received negative feedback from one of our newly joined employees."?

Have a nice day.

Simhan
A retired academic in the UK

Dear Alok,

If that resource has received the red certificate during their background verification, then it is certain that the company will terminate them, and the notice period will be respected. The decision will be based on management and the nature of the work.

Regarding the salary aspect, is there any clause stating, "will hold the resource's salary until the background verification is completed"? I hope not, as no reputable company should have such a clause. Therefore, the resource is 100% eligible to receive the worth of their two months of hard work, and it is mandatory for the company to provide it.

If you have proof that the certificates produced were fake, then you can dismiss him. Before that, you have to refer to your Standing Orders, if any, which will specify the action to be taken against an employee who enters the company after falsifying certificates. If no standing orders are drafted, follow the general disciplinary procedure of issuing a charge sheet and asking him to appear before the Enquiry Officer, etc. If the Enquiry Officer finds that he has falsified the records, you can dismiss him from service.

As advised by Simhan, pay him his salary for the period he worked, and also provide subsistence allowance during the time he is under suspension and facing the inquiry. Failure to do so may invalidate the inquiry. The salary for the period he worked should include his allowances.

Regards,

Madhu.T.K

Dear Balaji,

1. Try to determine whether the information (negative feedback) is genuine. Ensure that the feedback you have received is verified.
2. Since the employee is new, terminating his service during the probation period should not be a problem for the employer. However, proceed according to the provisions of the conditions of the appointment order.
3. You, as the employer, have the right to retain him or otherwise (even if the negative feedback is proven). Talk to him about the feedback you received and listen to his perspective on the matter.
4. In any case, withholding his salary is not appropriate.
5. There is no benefit in prolonging this issue. You have two options: 1) retain him 2) dismiss him; Make a decision based on the facts and figures.

Thank you,
Balaji

Dear Sir,

According to standing order of the company,” All workmen will be deemed to have been appointed on the basis of the applications / representations made and facts disclosed in their applications for employment of / in the form/forms required to be filled at the time of employment. The Manager may verify the antecedents of a workman made false declaration in the establishment or in case the verification of antecedents' reveals any adverse remarks/reports against him/her which would in the opinion of the manager make him/her unfit for employment in the establishment, appointment is liable to be terminated without any compensation or notice whatsoever.”

Behalf of Standing order we can terminate him without compensation?

Regards
Alok

Dear Alok,

The standing order as mentioned hereinabove can be challenged in Hon'ble Labour court or Higher court even though if this has been accepted mutually by both the parties (Employer & Employee) as per the norms and policies of the company.

I remember a case of similar nature where the judgment was passed in favor of the employees, wherein the court said, "it is the sole responsibility of the Recruitment Team to appoint any person in any organization after verifying all the academics and credentials, character antecedents, police verification if required, of the candidate."

To be on the safer side and discourage unfair practice, it is wise to clear his pending compensation and ask him to resign from the capacity he is working on a good note.

Regards, Videet

Dear Sir,

I have talked to a person who told me that he has not received his salary for the last three months from his previous employer due to the company's bad financial crisis.

When he submitted his resignation to the company, they did not provide him with acceptance, a relieving letter, and an experience certificate. Therefore, he prepared his own experience certificate.

Kindly suggest to me what to do in this matter? However, my corporate Head HR does not agree with this situation; he wants to terminate him.

Regards,

Alok

If you are able to speak to him and get the above-mentioned reply, you can document it by giving him a memo and asking him to reply in writing. The reply need not be accepted (as it is clear that the management does not want to hear his explanation), and you can proceed with an inquiry and terminate his service following the reports. By admitting the fact that he had made the certificate by himself, his innocence is not proved. Whatever is done is a serious misconduct. Above all, your standing orders say that the services of an employee who takes employment after producing forged documents shall be terminated without paying any compensation. Even the court will not say that you should retain him or pay him any compensation. If an employee is dismissed on such charges after following a proper inquiry and after giving the accused all opportunities to defend his charges, no court will say that the employee should be reinstated because once the employer loses confidence in an employee, the former has the right to terminate the contract of employment.

However, two months' salary pending shall be paid without fail.

Regards,

Madhu.T.K

Query Regarding Document Verification

Thanks for the suggestion. However, I have a query regarding verification. Why don't companies verify their documents before providing an offer letter?

Regards,
Alok

There is one fundamental question facing the organization here: do you tolerate falsification and cheating?

If your organization cares, it should immediately terminate the person who falsified records. This is important because other employees will feel hurt and demoralized.

Alternatively, if you don't mind (as an organization), you should pay him his salary with all honors. Other employees will also try to do similar acts, and you will have to live with it.

Now that you have given him work but not paid his salary, you may ask him to leave after settling his dues. In this way, you have lost the opportunity to penalize him.

Organizations should not take undue advantage of an employee, even when he/she has committed a wrongful act. Organizations should neither engage in wrongful acts nor tolerate them.

Dear Alok Singh
According to your statement two things has to be noted
1, we got a negative feedback from one of our newly joined employee----? Do you feel he/she (newly joined employee) is authority to give are disclose the employee details in there previous company.
2. I hope he is still working with your company – as per your statement, if he submitted a fake certificate he might have abscond because you have hold his salary.
According to me please inform the fact what had happen really – to get solution from us
M.Suresh
Fidelity Verification services
09840259786

Dear Alok,

I hope that you are in good health. A fake certificate is not a good sign, but first of all, check what the law describes in this situation. If the law doesn't mention anything about this, then check if your company has any code of conduct regarding fake certificates.

BUT REMEMBER! An employee is the main asset of the company, and an efficient employee is more than an asset. So, keep in mind that if the supervisor is performing well beyond his responsibilities, there may be no need to punish him. Just warn him professionally so that others don't become demoralized. This is the best solution. However, keep an eye on him because INTEGRITY is the most important aspect in a company/organization.

I hope that you understand.

Regards,
Ghulam Mustafa
+966 566 457419

Dear Alok,

The matter first needs investigation. Afterward, if you find that the certificate was fake, then after suspending him, follow the proper legal procedure, i.e., show cause notice, charge sheet followed by a domestic inquiry. Ensure that the inquiry is free and fair and not with a predisposition. If found guilty, dismiss him. Please do not make any compromise by keeping him in service. The right attitude holds more value towards organizational development than anything else.

With regard to payment, you have two options. Firstly, you may book him under IPC for cheating as defined under Section 415 and forgery under Section 463, and the punishment thereof under Sections 417 & 465 of IPC respectively. In this case, the whole of the salary withheld will also become a subject matter of decision of litigation under Section 15 of The Payment Of Wages Act (delay in payment of wages), and the final payment will depend upon the outcome of the decision of the authority appointed under Section 15(I). However, this will be too extreme, and as a manager, it will be stretching too far. A better course would be to pay the payment for the period he has worked. Caution for you is that time is running out of your hands, and the more delay you make in taking action, the case tilts more favorably towards the employee concerned. Obviously, after the suspension, you need to pay him only according to suspension rules.

Feel free to contact me if you need further assistance.

Regards,

DS

Email: dstomer2007@rediffmail.com

Sir,

What will happen then if the previous employer is making a false statement because we don't know the reasons he left the job and they don't want him to join somewhere else? It is your duty to timely check the provided documents, most importantly.

Sir, if he is doing his job 100%, then what is the problem with you? This was your mistake to tell that guy in advance after checking the background.

Dear Alok,

Prima facie, it is found that his certificate is a fake one. Therefore, pursue the proper procedure under your Standing Orders or your Conduct & Disciplinary Rules, if any. Nevertheless -

1. Suspend him pending inquiry and issue him a simple charge sheet asking him to show cause why he should not be dismissed for submitting a fake certificate to secure employment. Give him the shortest time, say 7 days or 10 days, to reply in writing to SCN together with a genuine certificate, if any. Appoint an Enquiry Officer to proceed with this. Based on his reply, do the needful. Remember, you have to pay him subsistence allowance during the suspension period. Regarding salary for the months worked, if it is a statutory or skilled post that requires a competency certificate holder only, you may even forfeit his salary after following the above procedure. Otherwise, just pay him and decide the rest as per the enquiry report.

Natural justice should prevail.

Regards.

You can terminate him on this ground, but consider if he is really worth the post.

Secondly, sometimes an individual does not have a good rapport with his superior, or his skills clash. In this regard, we cannot expect good feedback from the last company.

Thirdly, is anyone involved in the interview from your company, and what feedback has he submitted?

Regarding wages, you have to pay what you promised in writing and call him for further discussion. If this salary was decided based on your past experience and it is not accurate, we need to revise the present offer. If you accept, then proceed with the job. If not, then consider it yourself and give him a week's time.

Vinod Saini
Contract Manager
SUDAN

No need to pay a salary, but in the case of forgery, a case can be filed against him. He has cheated the organization, but it depends on the organization's policies. Action needs to be taken to prevent such incidents from happening in the future.

Regards,
Sanjay

In my humble opinion, Alok needs a break and should be given the opportunity to prove himself yet again. Lest we forget, he needs encouragement in self-belief and seeking out the right path for himself. Needless to say, the employer would've won a 'family' member that shows solidarity, if not gratitude. "The evil cannot survive without the consent of the victim." This, again, is my two cents...

Dear Alok,

There might be several reasons why he submitted a fake certificate, such as pressure from seniors or other factors. If you and your organization believe that this individual possesses the necessary skills and knowledge to deliver better results personally and for the organization, then this matter should be discussed with the relevant person in your organization.

Why didn't you verify his certificates before appointing him? He is liable to get paid for the days he has worked (exception only in case, if your appointment terms say that an employee will be fired without pay in case of false certification).

Regards,
Stephen Marks.

Dear Vinod,

Sorry, I don't agree with you. Irrespective of his worth, it is a dangerous and wrong precedent to continue associating with a person who cheats you. This is akin to the recent uncovering of pilots who were appointed with fake competency certificates. They have been dismissed even though they worked for a few years at Air India and other airlines. Even in their cases, there were no public reports indicating they performed below par. Fake certificates are never pardoned.

The compensation here does not mean "salary," it means compensation in lieu of notice. So, in my view, there is no escape from paying him in full until you suspend him pending an inquiry.

Regards,
DS

Hi Alok,

Further to my earlier postings (as DS), the matter of what you should be doing with the employee is of your personal choice. In law, he is guilty and should be punished. However, it is up to your standards, the ideology of your organization, and what you decide. Keeping a clear focus on fraud will require thinking twice and maintaining tight vigilance on his actions. Think within a broad framework and decide in the best interest of your organization. Try to be neutral and objective when making the final decision. Do what best suits your organization.

Best of luck and regards.

Email: dstomer2007@rediffmail.com

Look, I believe once a person joins a company, they become like a new family member. If we find that, after ignoring his/her fake certificate, the person still qualifies for the post, just impose a penalty not higher than 1/10 of his salary. However, if the person was qualified with the help of that fake certificate, then it's a fraud case and no notice is needed.

Remember, it's the employer's responsibility to check documents before hiring.