How Can I Resolve a Background Verification Issue with an Uncooperative Former Employer?

Hello. I submitted an instant resignation on 21-04-2023, stating to my company to consider 24-04-2023 as my last working day with them and sent an official email for the same. Since it was not feasible for me to fulfill the 60-day resignation notice period, I informed them that I'm willing to pay the recovery charges for 60 days.

My former company accepted my resignation but insisted that I serve the full notice period, which was not feasible for me, as I had a new opportunity at hand, and my new employer required me to start immediately on 26-04-2023. I discussed this situation with the HR at my new company, and she mentioned that since I had already informed my previous company in writing to consider 24-04-2023 as my last working day with them, they would eventually issue an acceptance letter with the corrected last working day.

Therefore, I commenced my new role on 26-04-2023. I continued to follow up with my previous employer to provide me with written confirmation of 24-04-2023 as my last working day, but they evaded my emails and continued to mark leaves for an entire month.

After a month, I received an email from my former employer stating that they had considered 21-05-2023 as my last working day and were unwilling to modify it. They intentionally marked my leave days to potentially sabotage my background verification with the new employer based on the pretext of dual employment. My new employer has not yet initiated the background verification process.

Please advise on how I can address this situation as my new employer insists on the correct last working day for the background verification, which could lead to termination if not resolved. However, my former employer is uncooperative. Please suggest how I can navigate this dilemma.

Background Verification Challenges

This is an area where the background verification team is focusing intently. They perceive it as a discovery due to their expertise. Employers who engage these agencies often accept their findings as final and, without questioning why this has happened, may ask the employee to leave.

Issues with Exit Dates

If the previous employer has not paid the salary, why should they keep the exit date pending? If the employer has not updated an employee's exit from the PF records, they cannot transfer the account or conduct any transactions. To avoid such issues, a link has been provided to employees/members in their portal to update the exit date. You should have updated the exit date yourself. If there is a mismatch in the exit date with overlapping service, you can ask the employer to change it or file a complaint with the EPFO using the relevant link on their website. They will handle the rest.

Considerations for Leaving a Job

One important thing to consider is that if you decide to leave an organization, it is up to you to decide when to go. If you are asked to leave or your service is terminated, you may question the employer's actions, citing legal sections, clauses in the appointment order, and ethics. If you are asked to leave immediately, how can you find an alternative job? Is it legally fair to ask someone to leave immediately? Now, when you wanted to leave, you needed it within one or two days, right? Did you allow the employer at least one week to find an alternative? No. In such a scenario, the employer may become hostile. Never blame them.

But how can they change my last working day if I had given them in writing to consider 24-04-2023 as my last working day? On top of that, they did not even inform me about my last working day and kept stalling me for a month.

Leaving Without Serving Notice Period

How did you leave the company without serving the notice period? There was an absence of natural justice, right? Similarly, they did not relieve you on your last working day but kept you on leave without pay, so no payment or PF contribution needed to be made. This way, you could be put under pressure temporarily. Yes, it is temporary, and you can approach them and humbly request them to change the date of the exit. They might do it.

Concerns About PF Details and Background Verification

I am against the practice of using employees' PF details to find overlapping services. I believe that no one other than the employee should know the dates of entry and exit. If there are any overlapping dates, it should be addressed by the employee only. The background verification agency acting like a detective has no right to verify such things. The employer, deploying such an agency and accepting its reports, should take action only after consulting the employee concerned.

I am concerned if any employer conducts a background verification of an employee who has joined to take up an engagement that is very important to the company, especially when the availability of such a skill is very limited in the market.

I had sent an official email for the resignation, stating 24-04-2023 as my last working day with them, and had submitted my resignation on the portal. I also mentioned that since I am not able to serve the resignation period, I am ready to pay 2 months of salary in lieu of that.

They did not put me on leave without pay. I had 27 paid leaves in my account, and they kept using those paid leaves to fulfill my resignation period.

I have requested them to change the last working day, but they are not making the adjustment.

Hi, you shouldn't have joined another company before the end of your previous employment contract. Now, you can explain the situation to your current employer and see if they are willing to consider it.

Handling Salary and Exit Date Issues

"If the previous employer has not paid the salary, why should he keep the exit date pending?" - Mr. Madhu. If an employee absconds in the middle of a salary cycle, we typically do not close the file immediately. Instead, we follow a disciplinary process, starting with a warning letter and eventually issuing a termination letter after 15-20 days. During this period, zero salary will be processed for the employee, marking it as leave without pay (LOP), and the employee will remain active in HR records. Once the termination is officially served, the employee will be removed, and the Last Working Day (LWD) will be updated on the employer's PF portal.

Consequences of Absence of a Proper Relieving Order

In addition to PF issues, the absence of a proper relieving order itself will demonstrate that the employee was not formally relieved.

Employer's Responsibility in Leave Balance Utilization

If they had utilized your leave balance, then they should have also paid your contributions because marking the days of absence as leave will result in the employer paying the salary, which will ultimately contribute to your benefits. This situation could become very serious as the employer may not be able to reverse the date of exit.

Can my new employer grant me an exception?

Can my new employer grant me an exception for this? I haven't hidden anything from them.

Legal action against my former employer

Can I take any legal action against my old employer, as they intentionally changed my last working day and did not inform me about it?

If they have paid your contributions for April until the 30th, then they cannot change it. You should convince them to make the last working day the 30th of April so that you can set the date of entry as the 1st of May. If they are adamant about paying your contributions only until the 21st of this month, meaning the date of exit cannot be earlier, the only possible solution is to set your joining date at your present company as the 22nd of May. If that is acceptable, you can collect your salary from the previous employer until the 21st of May.

Regarding your concern, "Can I do anything against my old employer legally," I would say that this is not a legal issue. Legally, you might have the right to leave an organization without notice, and on the employer's side, whatever they have done is wrong, but this is not the time to debate. If your presence in the current office is very important to the employer, they will likely not pursue any background verification. Even if they do it as a routine, they can overlook any negative remarks on your past employment. However, you cannot expect the same attitude from future employers you join.

Well, I understand your point. That's what I'm trying to convince them. I have a meeting in this regard with my new employer. Let's see what they say.

Impact of Dual Employment on Background Checks

But let's say if my new employer does not give me any positive response and I choose to leave, will it reflect in my background check for the next organization that I may join, indicating that I was involved in dual employment? Background verification has not been conducted yet.