How Should Companies Handle Employees Who Lie About Their Salary During Hiring?

Handling False Salary Information in Corporations

Please suggest what actions should be taken in corporations when an employee is found to have provided false information regarding their salary. For example, if during the interview process, an individual claims their salary is 20,000 per month, but in reality, it is 15,000, and upon verification, it is discovered that they have manipulated the salary details. What course of action should be followed considering that the individual has already joined our organization?

With Regards,
Anupam Bharti

Please cross-verify the appointment letter along with the latest salary certificate. If the employee says they received a hike, ask for the document to prove it; otherwise, request the recent bank statement showing their salary. If, despite all this, they are found to be fraudulent, you can always terminate them based on approval from your senior management.

Different companies present their salary structures in various ways, such as gross, CTC, and CTC including or excluding allowances. I suggest you cross-check with the employee regarding the salary statement they have provided. Then, you can decide whether to terminate or warn the employee and adjust their salary as a punishment or warning for misconduct if you believe correction is needed. If not, obtain a written statement from the employee and proceed according to your company's policy.

I agree with Mr. R. Mohana Sundaram. You can check with the previous employer or ask him for clarification. If the details are found to be incorrect, terminate him as per company policy. If your management considers retaining the employee, AVOID THAT, as it would create a bad impression on existing employees about the organization.