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The Coffee Break Guide to Compliance – Vol. 17

Posted by: on 4 October 2018 in HR, Human Capital Management, Talent Management

This post is part of the Coffee Break Guide to Compliance by Anandan Subramaniam. Please subscribe to the blog updates if you’d like to be notified of these posts. Please comment below with your doubts and queries.

The Coffee Break Guide to Compliance – Vol. 17 {Why Employers Need to Take Precautions from the Pre-hire Stage}

The employment cycle of any person in an establishment has several stages. Employers have distinct accountability they need to comply with, at each stage. The first two stages are more critical for the establishment, which determines the right recruitment, whether the person is a potential candidate or not.

Of late, many pre-hire slip-ups had resulted in friction between Employer and separated Employees, which even goes to labour authorities as a case.

The different stages of the employment life cycle are:

  • Pre-Hire stage
  • Hiring stage
  • Induction stage
  • Employment stage
  • Separation stage
  • Post separation stage

The Pre-Hire stage commences with identification of the resource with right academics, related service experience, appropriate knowledge on the job and availability at the expected place/time.

Unlike the pre-globalisation period, recruitment today has all types of complexities. ‘White collar’ workers—engaged in information technology, IT-enabled services, accounting services, BPOs, KPOs, insurance services, banking operations, trade and commercial services, back office for manufacturing services, etc.—are often found with issues of breach of fiduciary responsibilities and other corporate non-compliances.

It therefore becomes a mandatory responsibility of the talent acquisition team to ensure the following, before issuing an offer letter:

  • Not to be influenced by a ‘padded resume’
  • Endorse the candidate as the right fit for the required job
  • Legal cessation of employment with previous establishment
  • Insisting appropriate documental proof of termination of agreement with previous establishment
    • Acceptance of resignation
    • Completion of handing over process
    • Relieving communication
  • Date of joining with current establishment must be after the last working day of the previous establishment

While the employers need to verify that the recruit is joining the establishment after resigning from the previous job, it is also essential to verify whether the candidate has any post-separation obligation with his previous job. If it is not confirmed, then there are chances that the recruit breaches the confidentiality clause signed with both establishments. After issuance of appointment order, if found that the new joinee is obligatory to the previous establishment, taking action, as per the Regulatory Act or Standing Order Act, would be complex. In such cases, the establishment has to invest more in monitoring, controlling and ensuring all Employees maintain confidentiality while performing the job or executing the projects, in the interest of the establishment and its clients.

Hence, ensuring few mandates during the pre-hire stage will guarantee that there is no labour related disputes after selection of the candidate.

Conflicts between the recruit and the Employer occur mostly on the listed below terms:

  • Wages – the compensation structure, non-inclusion of benefits, deduction of certain monetary benefits
  • Dual employment – in case of continuation of employment in the previous establishment. Payment wages, remittance towards social security benefit, calculation gratuity term etc. shall be challenging

Besides, pre-employment screening (background verifications) shall be completed even before the recruit joins the establishment, which will safeguard the Employer from unnecessary termination of contract, in case of any concerns.

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