How Does Dual Employment Affect Background Checks When You Have Legitimate Reasons?

Hi all,

Summary of Employment History

Company A:
- Joining date: April 28, 2020
- Last working day: September 29, 2020
(I was laid off in July 2020; however, the company paid me a salary until September 2020). As per the letter, Company A clearly stated to look out for other opportunities due to no projects.

Company B:
- Joining date: July 15, 2020 (I joined Company B immediately since I had no job after a layoff from Company A)
- Last working day: November 2022

I have company letters from both organizations.

Concerns About Dual Employment

Now, I am joining Company C, which is raising concerns about dual employment. How does it really matter for other firms during the background verification (BGV) when I have legally received letters from both companies? I have provided a clear justification for being laid off and hence joining a second company. Company A was fine with giving me a service letter even after knowing I was employed in Company B during July, August, and September 2020.

Hi, As per your statement, even though you were relieved from Company A by July 2020, Company A processed your salary until September 2020. This indicates that Company A either kept you on their payroll until September 2020 or calculated and paid your salary in advance as a lump sum amount.

If Company A retained you on their payroll until September 2020 and processed your salary accordingly, they may have also processed your PF contributions. However, you had already joined Company B by July 2020, and this information might have been reflected in the UAN portal.

Please review the relieving letter from Company A to confirm the last date of your employment mentioned therein.

Now that you have concrete evidence, you can explain the situation to Company C.

Hi, Sir. Thank you for your valuable insights. I have Company A's relieving letter dated September 2020, which is now causing a problem for Company C during background verification as it shows dual employment. I don't know how to tackle this issue now.

At that time, I had actually forgotten to inform them about my new job, so they paid me my salary until September 2020. I had not collected my relieving letter at that time.

However, now Company C has asked me to obtain a relieving letter from Company A. Even after informing Company A about the overlapping dates, they provided me with the relieving letter.

Despite this, Company C is still not satisfied, and they are stating that they cannot hire me due to the issue of dual employment.

PF Deductions and Dual Employment Concerns

First, check the details of PF for Company A and Company B. You left Company A on July 14, 2020, and joined Company B on July 15, 2020. Now, has Company A deducted PF till September 30, 2020? Has Company B also deducted PF from July 15, 2020, to September 30, 2020? How come the PF department hasn't raised an issue for this double deduction?

Dual Employment Issue

Concerning dual employment with Company C, it is simply ridiculous. I believe Company C is not reliable, so it's best to ignore them and leave the job. For your future, you need to address the employment issue between Company A and Company B.

Steps to Address the Issue

1. Check Company A's laid-off letter. Does it state that you were laid off on July 14, 2020, your last working day, and you are free to seek employment elsewhere? You will be compensated with your salary till September 30, 2020. If this specific wording is present, you are legally covered. If not, please contact Company A for clarification or an additional letter regarding your last working day and freedom to seek other employment. The salary from July 15, 2020, to September 30, 2020, is compensation and should not be considered as part of your regular salary. (The PF issue should be treated separately.)

2. Did you mention in your application to Company B that you were laid off from Company A on July 14, 2020, and were seeking employment elsewhere? If you have proof of this, you are in a secure position. Do not hide your departure from Company A and joining Company B.

3. Company C's actions seem like a tactic. Even if they sort out this matter, it might become a subject of mockery later among the staff. It's advisable not to work for Company C when they initially refused to accept your explanation but later cast doubts on you.

4. Regarding PF, consult with an expert. If PF deductions were made incorrectly beyond July 14, 2020, adjustments can be made in the Annual Return by the consultant for all staff. The PF department will also review this issue, so there is no need to worry. Contact the consultants of Company A and Company B to verify the PF statements. Today, dual employment is a widely discussed topic globally, so it's important to address it properly. PF issues should be addressed separately. Additionally, check the intimation letter from Company A, informing you.

Ethically, it is incorrect to accept a salary for the same period from two employers. An ethically conscious organization will view it as a serious offense as it reflects on the integrity of the person.

Hi, Better contact Company A for a No Objection Certificate stating that you were officially relieved on [date], but the salary was paid till September 20, [year], and they have no objection to your joining Company B by July 15, 2020. Company C might accept this certificate. Please try.

It is clearly a matter of misunderstanding, without consulting a proper Labour HR consultant or outside agency.

Considerations for Notice Periods

Here, two things you have to consider. When an employee leaves the organization and gives notice, the appointment letter may specify either a one-month notice period or the option to pay one month's salary for immediate relieving. Similarly, the company may require either one month's notice or one month's pay for immediate relief.

In these cases, the one month is treated as compensation received or paid, as the person needs to work only until the date they are employed within the company and get relieved. All the laws regarding PF, etc., are applicable only until that date.

Employment Continuation and No Objection Certificate

However, continuing his employment until 30th September 2020, after relieving him on 14th July 2020 when he is not in attendance, is quite unnatural. Therefore, a clear NO OBJECTION CERTIFICATE is needed to absolve him from any discredit of double employment for his future career.

Resolving PF Double Deduction

The main point to be resolved is the question of PF double deduction—whether it occurred from Company A and then again from Company B, or not.