Legal Dilemma: What Happens If We Don't Pay a Fired Employee Who Lied on His Resume?

Dear seniors,

I work in a small company as HR. An employee joined our company, stating that he has a total of 7 years of experience. According to his resume, he has been working at his previous company for the last 4 years. Upon joining, he informed us that his previous company was relocating to another place, so he might not be able to submit the required documents immediately. He mentioned that he would submit them within the next month.

We agreed and proceeded with his hiring. On his joining day, we provided him with an appointment letter, an ID card, and an access card. After 20 days, we conducted a reference check, which he did not pass. The reference check revealed that he had only been working at his previous company for the last 4 months. Consequently, we asked him not to come back to work.

Problem: We are not willing to compensate him for the 20 days he spent working with us. He is now considering legal action.

If he chooses to pursue legal action, what could be the potential consequences?

Please share your valuable insights.

Thanks in advance.

Regards,
Ramana

Frankly speaking, HR should have conducted a background check before issuing the appointment letter. For this issue, he can't claim a complaint against your company because he failed to provide supporting documents for his experience and deceived the company by falsely stating that he had been working with his previous company for 4 years. So, don't worry about him.

Termination and Employee Rights

Does the employee stand terminated as of now? Since he has been issued an appointment letter and has signed in acknowledgment, the contract of employment is signed. After this event, the employer-employee relationship is governed by the contents of the said contract and applicable law, and neither the employer nor the employee will be free to act in variance of the stipulations of this contract.

It is one thing that he has resorted to falsehood to get the job, but the point is that the company has fallen for it too. If the individual is punished (by loss of employment), he should not be punished again by denial of wages for the relevant period.

There is more to the employer-employee relationship than just legal rights and obligations. I do not find fault with his termination, but what HR philosophy is it that denies consideration for someone's labor? For his dishonesty, he has lost the job. Now I consider that it is WRONG for the company to also deny wages for the period. Punishing someone like this (twice) is not justified in HR philosophy.

Please consider the situation objectively, and you will agree with me! Be human!

Regards,
Samvedan

September 1, 2011

Dear Kranthi,

Thanks for your valuable suggestion. We haven't given any termination letter; is that going to be any problem in the future? Please clarify. Thanks.

Regards

Usually, appointment letters contain a clause indicating that if there is any misrepresentation of facts in the candidate's resume or any undisclosed information related to academic, personal, or experience claims, the appointment will become null and void.

The above is a clear case of an appointment that has become null and void, presenting a legal employment situation. Hence, even if the individual seeks legal recourse, he/she must prove that the employment was secured through fair means.

In the event of seeking legal remedy, the only consequence is to pay your legal adviser their fees. It may be worthwhile to send a message to future candidates who may attempt to deceive you. If you are serious about this, compare the fee payable to your legal adviser (lawyer) with that of the individual's 20-day salary. If his 20-day salary is less (which it should be), pay him for the days worked, but do not issue an experience certificate.

Kind regards,

Dayanand L. Guddin General Manager Group Strategic HR & Admin Endurance Group

While Samvedan has put things in the right perspective, Dayanand L Guddin has hit the bull's eye—his logic should enable you to handle it from the HR perspective (being 'humane' as Samvedan said) as well as help the accounts team and management grasp the core issue without your actions being dictated by what this individual did.

Issuing the Termination Letter

When it comes to issuing the Termination Letter, it's essential to keep your records straight. Given this individual's tendency to resort to legal action despite being in the wrong, it is prudent to be cautious from your side. Since you most likely won't be providing him with a positive reference for future checks, there is no need to keep the issue open-ended on your end.

Internal Communication and Lessons Learned

I also recommend taking another action: spreading the word within the company to ensure that all employees truly understand the consequences of such behavior.

Lastly, please ensure that the management also learns the lessons (as Kranthi mentioned) and makes necessary corrections in the hiring process promptly.

Regards,
TS

Thank you for all the kind suggestions. Let me put this in simple words: if the employee chooses to pursue legal procedures, do you believe that the company does not have anything positive to offer?

Like you put it in simple words, let me also put it across to you in the same way: What the guy does IS NOT in your control—whether he goes legal or whether he paints a horrible picture about the company with the media and so on... with the human mind being what it is, the possibilities could be many. But WHAT IS DEFINITELY IN YOUR CONTROL is to take ALL necessary steps to PRE-EMPT his possible steps [as per your hunch, going legal] AND to prepare all possible grounds and response mechanisms to handle the situation IF HE DOES GO LEGAL, as you fear.

My Suggestion

My suggestion is this [basically a repeat of what Samvedan and Dayanand L Guddin mentioned at the very outset]: Just pay the 20 days' salary to him AND GET Acknowledgements that he got the F&F settlement—just ask your seniors to draft the document if you don't already have it. By doing this, you will be doing your best to PRE-EMPT the legal possibility AND ALSO take the necessary steps to handle the situation IF HE GOES LEGAL. Also, suggest involving your Company Legal Advisor in the whole matter.

All the Best.

Regards, TS

Dear Mr. Ramana,

The required steps to be taken in this regard are clearly outlined by Mr. TS, Mr. Dayanand, and Mr. Samvedan. Please follow the above, as it is correct and adoptable. You cannot punish twice for a single offense, and any offenses committed must be tried in a single go; they should not be used to increase the punishment.

If you pay the 20 days' salary, 1-day notice pay, and 1-day leave pay, then all your liabilities will be cleared. However, if you neglect to do so, the offender will be seen as a hero, and your company will be viewed as a villain in the eyes of the media and others.

Please ensure all records are properly maintained before making any payments to him and releasing him.

Thank you.