Is It Ethical for Companies to Charge for Ex-Employee Verification? Let's Discuss

Ethical Considerations in Ex-Employee Verification

For any ex-employee verification, the employee's previous company is asking for some amount to be paid in order to get the verification done. Is it ethical? Kindly share your suggestions.

Regards,
Sharad Kumar

If it is true as quoted by you, the act of such a company amounts to unethical behavior in demanding money from ex-employees for verifying their credentials. I believe that without the knowledge of the higher management, some unscrupulous individuals in the HR department may engage in such acts. Therefore, it is advisable to bring these issues to the attention of the higher management to clarify the company's policies. If their response aligns with the HR department's actions, it would indicate that the entire company operates with an unethical policy. In such a scenario, the only course of action would be to lodge a complaint with the Registrar of Companies.

Regards

Thank you for your response. From the response mail we received, it appears that the management is aware of such practices in the company. They are requesting the DD in favor of the company with Service Tax.

The company is based in Delhi and is a member of the Data Security Council of India (DSCI), NASSCOM, FICCI, and others.

Where can we escalate this unethical practice?

Regards,
Sharad Kumar

If a new employer engages a person or private security agency to inquire into the credentials submitted by a selected candidate with their previous employer and pays an amount to such a private security firm, it cannot be considered unethical. However, my point is that if the former company demands money for providing a reply to the new employer's query regarding the credentials of their ex-employee, it is unethical.

Regards