Background Checks in HR: When to Start and What If Results Are Negative?

I recently joined a company where they want to implement background verification. I want to understand how to start this process. Is this before a candidate joins or after? And if a candidate joins and the verification is negative, what is the general practice in terms of HR?

Hi,

Background Verification Check (BVC) Process

For BVC, the employee has to join the company before the employer can conduct the check. You need to categorize the matrix as clear, minor, and major categories. For major cases, immediate termination should be implemented. Major cases may include criminal offenses, theft, and forging of documents. For minor cases, issues like differences in designation and salary should be considered.

Generally, HR conducts the BVC after the employee joins to ensure a win-win situation. When a candidate is selected and confirms their Date of Joining (DOJ), they are likely to have resigned from their previous job. The employee's life cycle should only be updated once their Full and Final (FNF) settlement is completed in their previous employment.

Choosing a Verification Agency

Many companies perform BVC, but it is advisable to approach only those that are NASCOM and NSR certified, as they have the authority to conduct verifications.

Thanks

Background verification exercise

A background verification exercise has become the 'order of the day' as more and more employers commission this compliance before a recruitment process is complete. There are various requirements, and all or some of the following checks could be undertaken:

1) Criminal past records - verification from the police station of domicile; comprehensive Criminal Search (verbal & records); Court Record Search online/offline.

2) Educational qualifications verification.

3) Past experience - immediate past or crucial employment verification from firms, including employment verification, emoluments, perks, NOC/relieving/experience certificates, and letters from management, team leaders/supervisors/colleagues as the case may be.

4) Antecedents - present & permanent address verification through site visits.

5) Verification of PAN, Aadhaar/Passport, and endorsements therein.

6) Rating in 'CIBIL' if necessary, where advances/loans are involved.

7) Professional references check.

8) Personal reference check - where the credibility of the candidates is ensured by verifying in their surroundings/workplaces.

9) Habits - drinking & drug test, especially where extensive driving is involved.

10) Conflict of interest - required mostly for senior management levels where relatives/associates are likely to influence the employer's activities.

11) Bank credits - statements of at least the last three months where salary for past service was credited to corroborate the last drawn salary, etc.

In case negative feedback is reported by the accredited agency, the present employer may relieve the concerned individual with or without any remarks. In such instances, proportionate agreed salary for the period in attendance is paid, and no full and final settlement would arise. Generally, this type of separation is not treated as termination; the matter is closed after a document is signed by the candidate mentioning the reasons and committing not to raise any dispute over the matter. All originals are returned.