Worried About Background Check Due to Blacklisted Former Employer – What Should I Do?

Hello all, I am facing an issue with one of my previous employers who has been blacklisted. I was working with an MNC as a contractor for 1 year under the payroll of employer X. After that, I became a permanent employee in that MNC. After working for 1.6 years as a permanent employee, I received an offer from a reputed banking MNC. I have initiated my resignation and am currently serving the notice period. However, I have now come to know that my previous employer, X, has been blacklisted, and I am worried that the background verification might fail.

Seeking Advice on Background Verification Concerns

Can anyone help me with how I should proceed in this situation? My total experience is 2.6 years (1 year contract + 1.6 years permanent).

Nothing wrong in working on contract with an MNC under the payroll of X Company. Normally, the practice followed is that X Company will issue an appointment letter and a deputation letter, clearly mentioning "You are deputed to XYZ MNC." This shows that you are working under the umbrella of the MNC, but only the payroll is managed by X Company to show a lower headcount in permanent roles.

Please remember that background verification is done with the payroll company. Your first-year verification can be done from both companies. The payslip can be checked from X Company, and the actual deputation can be verified with your current MNC employer.

You need not worry; you need to disclose the 1 + 1.6 years breakup to your next employer so that they will provide correct information to the background verification agency. If you hide any facts from your next employer, it will go against you.

We also conduct background verification. Before starting an assignment, we collect full information from the company about the candidate. Our intention is only to verify whether the information provided by the candidates to our client is correct or wrong.

So, disclose facts to your new employer and give them the contact details of both companies so it will be easy for them to do verification.

Regards,
BrainLight HR Solutions

Thank you for your reply. However, I still have confusion because my previous employer, Company X, has been blacklisted. Will my next employer consider my first-year experience? Should I also disclose that my previous employer, X, has been blacklisted now? Will they terminate my employment after I join their company?

I have payslips, PF number, and contract ID from my previous employer as proof.

Thank you,
Sudharson

What BrainLight Solutions is suggesting when they say "you need to disclose (1 + 1.6 years breakup to your next employer so that they will provide correct information to Background Verification agency" is that you need to ensure that you provide the FULL & ACCURATE inputs to the new employer.

Also, you seem to be mixing up the STATUS of the X company with the status of YOUR employment with them — it's the latter that would be the focus of any Background Verification. You can give the reference of the MNC to counter any possibility of over-focus on the X company's current status by the BC Agency...just in case.

All the Best.

Regards,
TS

I agree with Sateesh that the status of your previous company, X company, is not relevant to your new employer. It is important to disclose all true information to your new employer, making it easier for them to verify all details. If you have not provided correct information previously, you can now provide your PF number, ID, and payslip.

The status of X company does not need to be disclosed as it is not relevant to your new employer. They will primarily verify your period of employment, designation, salary, reason for leaving, and your conduct. Therefore, there is no need to worry excessively about this.

Kind regards

I worked in Company 'A' for a year and then moved to Company 'B' for another year. Presently, I am employed at Company 'C'. Now, I have received an offer from one of the largest MNCs, let's call it Company 'D'. I have submitted all employment-related documents to 'D' for background verification.

Background of Employment in Company 'A'

Company 'A' is run very unprofessionally by unethical people who are very powerful and not afraid of any legal consequences. I have the offer letter from them signed by the then General Manager, who has recently moved out. I also have the relieving letter signed by the MD himself. During my one-year employment, I received salaries in cash for the first two months, May 2013 and June 2013. From the third month, i.e., July 2013, I received payments through bank transfers only. Even though I received cash in the second month, i.e., June 2013, they deducted TDS and deposited it in my name. So, on my PAN ledger for June 2013, it shows a tax credit from Company 'A', which is proof of payment. I also had an EPF account there. Apart from the first two months, i.e., May 2013 & June 2013, they deducted my PF and paid every month to the EPFO from July 2013 until the last month of my employment. Although Company 'A' deducted income tax from my salaries regularly, I do not have Form 16 from them. However, my TDS is reflected on Form 26AS, which can be downloaded anytime from the Income Tax Website.

Questions Regarding Background Verification

1. What should I do if Company 'A' ignores or denies certifying the details of my employment when the background verification agency, on behalf of Company 'D', visits there?

2. If Company 'A' does not provide details or gives false information that does not match what I provided to Company 'D', will the background verification agency or Company 'D' inform me? Will I be given an opportunity to prove myself by providing supporting documents like salary account statements? Or will they simply mark my profile and dismiss my appointment?

Note: Initially, I have only provided the offer letter and relieving letter from Company 'A' as per Company 'D's requirements. I have not provided any extra supporting documents like salary account statements yet. I believe I should provide those documents only if requested and not before unnecessarily.

Thank you,

Regards, Sam Singh

I have gone through your query. There is nothing for you to worry about. An ex-employer cannot jeopardize someone's future, as the apprehensions reflected by you.

Moreover, I agree that background verifications are carried out in a very shoddy way by people who do not have any experience in the corporate world. BV serves no practical purpose as past behavior is not a guarantee of future acts.

There is always a first time when every offender commits anything wrong, and it may not necessarily have happened in the past.

What is the guarantee that a person with a clean and good record will always perform well all his life or not do anything wrong?

With AADHAR and so many advances in police work, an offender cannot hide forever and will always be caught, whether he remains in India or flees abroad like so many high-profile offenders!

So, background verification is just a means for the concerned consultancies to earn money by scaring the employers about the dangers of similar offenses.

A successful BV is not a guarantee of future performance. A KYC system, as employed by the bank, is good enough.

What can an employee do, or where can he run away after a fraud, if the employer has copies of his AADHAR card, PAN card, bank account details, passport, voter's ID, etc.?

Please relax, and if any discrepancy is put forward by the BV agency, fight your case. Since you have not done anything wrong, nor committed any frauds, why are you worried?

Warm regards.

I am worried because this would be my first job in an MNC, and this job has been hard-earned. Additionally, I am concerned because this is the first time I am subject to a Background Verification (BGV), and I am unsure if agencies/recruiters will inform me if something is not confirmed. If they do inform me, I can provide all the necessary proofs. I have not provided any incorrect information anywhere.

Background Verification Concerns

Do you have any idea if BGV agencies/recruiters typically inform candidates if something is not confirmed by the past employer? Please advise me on how they handle such situations.

Regards,
Shamik

Understanding Background Verification (BGV)

BGV is all about verifying whether the records provided by you match those provided by your previous employer. If the relieving letter is issued by Company A, then they are responsible for verifying and sending a report. Moreover, if there are any pending exit formalities, it is the employer's responsibility to clarify exactly what is pending. Therefore, an employer cannot add anything extra or undermine someone.

If the past employer does not confirm anything, the company may ask the employee to contact the previous employer at times. However, they do not inform you if something is not confirmed by them. As the mistake is not yours and you are not liable, you need not worry. I have shared what I know, and I would be glad if any other experts could provide guidance on this.

Regards