Can Previous Employers Disclose Your Salary During Background Checks?

Hi All, I would like to know whether the previous employer reveals the remuneration details to the prospective/current employer during the employee background verification. Isn't there a confidentiality agreement between the employee and employer?

Yes, if needed, your previous employer will reveal the salary details during the background verification check if it is from an authenticated source. However, they will not disclose the entire breakdown of your salary; only the gross or CTC against the salary statement/breakup provided by you during the interview. A confidentiality agreement will not affect this process; it is for the better prospect of an employee.

If you have provided incorrect information about your salary, you will likely encounter issues because most companies conduct background verifications on Date of Joining (DOJ), Date of Leaving (DOL), Department, Designation, Salary, and conduct for a better understanding.

Regards

Salary Disclosure During Background Verification

During background verification, an ex-employer can reveal salary information to a prospective employer. A confidentiality agreement typically covers one's activities and know-how, not salary details, although some offer letters may suggest otherwise.

When recruiting a candidate, most companies request a photocopy of the payslip, and the candidate is expected to provide one. If the confidentiality clause is enforced, a candidate could potentially provide false information about their salary to prospective employers.

Regards

In our organization, there is a strict rule that no information on former employees is to be given out to anyone without written authorization from the concerned employee. We follow that rule, not for the sake of confidentiality (there is no confidentiality clause stating that the employer will not disclose salary), but to prevent unscrupulous agencies from obtaining personal and confidential information about the former employee. Remember that the information you have can be used for fraud, identity theft, or other antisocial activities.

Suggestions for Handling Background Checks

I would suggest the following:

- Ask the person calling where they are from, get their full details, including the company they are calling from and whom they represent (keep a record in your file).
- Ask them for a copy of the authorization given to them to conduct the background check.

We do not accept:

- A letter from the new employer to the Background Checker to conduct the BGC.
- A copy of the job application.
- A copy of the experience letter we have issued.

We ask for specific authorization from the FORMER EMPLOYEE to conduct the BGC.

All the large companies where our former employees have gone have a practice of obtaining specific written authorization from the new employee to conduct a BGC. They scan and send it to us; we check the signature against our records and then only answer the questions we have.