How to Handle Background Checks When Paid in Cash Without Payslips? Seeking Advice on Relieving Letters

Hi Seniors, I worked for a small software company. My salary was paid in cash, 12,500 only, and no payslip was given. Now I have been working in an MNC. During joining, I provided the salary certificate, appointment letter, and service letter from my previous company. The background verification team is now asking for the last 3 months' payslip and a relieving letter. I have spoken to my previous company, and they have agreed to provide the same. However, during that period, no TDS and ESI were deducted since the company had only 5-6 employees.

Payslip Without ESI and PF Deductions

Is it possible to ask for the payslip without ESI and PF deductions?

Difference Between a Service Letter and a Relieving Letter

Could you please let me know the difference between a service letter and a relieving letter?

As far as your new opportunity is concerned, the previous company has agreed to give you the payslip with applicable details. TDS and PF need to be addressed by the employer, and you may have to file your returns at the end of the financial year, which is a different subject. ESI may not apply to you, but the company should have provided group insurance or some health coverage, which again is the employer's responsibility to provide details.

They are bound to give you the service certificate (a letter indicating your tenure of employment, joining and relieving dates which authenticate your experience in the company and certify your employment behavior), and a relieving letter (a letter which indicates that you are relieved from the services, as per agreed terms and all the dues are cleared and closed by the date of relieving).

Good luck with your new assignment with the MNC. It seems to be a good breakthrough.

Since your previous company has agreed to provide you with the payslip containing relevant details, it reflects a good gesture. Do you have an appointment letter from your previous company? The content of the document should specify whether you were an employee, on a contract, or providing services to the company.

If you were receiving a consolidated salary, there is no issue. However, if your payment was structured as a salary with divisions, it may pose a challenge for your previous company, but not for you. If you were considered a service provider, they would request your service bills on a monthly basis. Ensure to retain photocopies of cheques or deposit slips if you received cash that was subsequently deposited into your bank account.

Verifying cash received can be challenging for an individual, particularly if the amount was not deposited in the bank account. Even if a salary slip was issued to you, it may not suffice for background verification purposes, as it was requested by them for their assurance. For cash payments, it is advisable to deposit the cash into your bank account and securely store the bank-issued deposit slip (properly stamped by the bank) for verification. This serves as the most reliable evidence for cash payments received.

Regardless of your status as an employee or service provider, issues related to TDS/PF/ESI may arise for your company. It is essential to compute your income when filing the income tax return, and any resulting tax liability must be settled by you.