How Should HR Handle an Employee's False Spouse Information and Ethical Breach?

Employee Misrepresentation and Ethical Concerns

An employee, who is also an HR manager, provided false information upon joining the company. He had a criminal case involving domestic violence and divorce, which was resolved just a month before he joined. Upon joining the new organization, he listed a different woman as his spouse, with whom he had no intention of marrying and no marriage records.

Her name was already registered in the company as his spouse, which is incorrect information, and he availed medical benefits using this false information. After being questioned by the woman, he withdrew after nine months.

Appropriate Course of Action

In such a situation, what is the appropriate course of action? Will the ethical and compliance department take action regarding his exit?

Although he withdrew, for nine months, he had the company pay for insurance based on false pretenses, as he never intended to marry the other woman. Additionally, the company did not conduct a background verification check due to his criminal case.

Legal Implications of Providing False Information

Any employee supplying false information to the company prior to taking up employment is engaging in illegal activity and is liable for disciplinary or legal action. If the employee in question is an HR Manager, the situation becomes more serious. You should instruct your Legal & Compliance department to initiate appropriate disciplinary action. Additionally, you may request the concerned employee to refund the entire amount withdrawn from the company under false pretenses. Once the full amount is collected, you may proceed with terminating the employee.

From my experience, I may caution you. Since he has been cleared of the criminal case before joining service, no stigma attaches. The proceedings for divorce are civil proceedings, although some criminal allegations may be there to show harassment.

Secondly, as regards taking the name of somebody as a spouse for medical insurance purposes, asserting that marriage never took place between them is not so easy to prove. There are no fixed routines for marriage; for example, 'Saptapadi' is only the essence of Hindu marriage. It will not be very difficult for him to prove that he had completed the essential steps of the marriage as per his personal laws. So you need to be very sure before you venture into disciplinary action.

The matter in question is that the employee was involved in a court case, but he has concealed this information in his employment application form.

Furnishing False Data/Information at the Time of Seeking Employment

Furnishing false data or information at the time of seeking employment and attesting in the company's record that the information provided was true amounts to grave misconduct.

Since this act of misconduct came to light later, when the employee fraudulently availed benefits and his act was detected, the employer must proceed against the delinquent employee (HR Manager) with disciplinary action as per the service rules or standing orders applicable to him, notwithstanding any ongoing or closed case in courts of law.

Employer's Disciplinary Action is Independent of Court Proceedings

Our Hon'ble Supreme Court has ruled that an employer's disciplinary action resulting from a domestic inquiry is independent of court proceedings or verdicts.

Therefore, proceed with the disciplinary action step and set a precedent.

Regards, Harsh K Sharan

Independent Freelance Enquiry Officer, Kritarth Consulting, 28.5.2020