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 Employment Background Check, The Real Deal!

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TScubicc
post Jun 15 2018, 01:42 AM, updated 7y ago

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I have come across a significant number of inquiries pertaining to employment background check by future employer and surprisingly, I found out there are more idiots who offers dumb advice like "why would you lie to your future employer in the first place" or "there is nothing to fear of if you were to reveal the truth" rather than to address the question in the most satisfying manner.

I will try my best to answer all of the FAQ based on my knowledge as to address the matter above.

Q1: Will my future employer find out about my past employment without my knowledge?
Ans: The answer is no as there are Personal Data Protection Act, 2010 (PDPA) to prevent your past employment information being shared. However, it can be made possible if you have signoff the PDPA release form to your future employer. Candidates are also requested by the future employer to inform the HR dept from their past few companies with regards to the employment background check excercise.

Q2: Who and what does the future employer usually prompted when they have come in contact with my previous employment companies?
Ans: They will usually contact the Human Resource dept of your company or the director of the company (if it is a small company without HR dept) to verify your employment history as below;
- Base salary and allowances
- Employment period
- Character and work ethics
- Resignation/termination
- Any restriction on future employment set by the previous employer
- Will your previous company reemploy you in future?

Q3: Can they check my past contribution to EPF via EPF Dept or my past employment via Human Resource Ministry (Jabatan Tenaga Kerja Malaysia)?
Ans: Fortunately no as all information from these departments are private & confidential.

Q4: Can my future employer make a request to view my EPF statement?
Ans: To view your EPF statement is no difference than to view your personal bank account statement or passbook. It is obvious your future employer has serious trust issue and I would strongly recommend for the candidate to abandon the job application.

If any of the forumers has questions of the above matter, feel free to drop me a line via this thread.

This post has been edited by cubicc: Jun 17 2018, 12:38 AM
taiping...
post Jun 16 2018, 04:20 PM

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Thank you for your info
Its very informative
UserU
post Jun 16 2018, 04:49 PM

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Won't employers check your history by calling up the previous company?
TScubicc
post Jun 16 2018, 10:44 PM

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QUOTE(UserU @ Jun 16 2018, 04:49 PM)
Won't employers check your history by calling up the previous company?
*
Yes, of course and it will be done with your permission. Your future employer will have to put in a request for you to sign off a PDPA release form, otherwise your employer(s) from the past will risked being taken to the court by breaching the PDPA act 2010.
Tellmeyourstory
post Jun 16 2018, 11:02 PM

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QUOTE(cubicc @ Jun 15 2018, 01:42 AM)

Q2: Who and what does the future employer usually prompted when they have come in contact with my previous employment companies?
Ans: They will usually contact the Human Resource dept of your company or the director of the company (if it is a small company without HR dept) to verify your employment history as below;
- Base salary and allowances
- Employment period
- Character and work ethics
- Resignation/termination
- Any restriction on future employment set by the previous employer
- Will your previous company reemploy you in future?

*
Am still uncertain on Q2. If my potential employer call up my current HR to ask these question, will my HR reveal the details?
a. Wouldn't that trigger my current superior that I am seeking out
b. Revealing on company job grade trade secret, if any
c. PDPA breaching?
d. Open for exploitation where I could impersonate other HR and mention my colleague or boss is seeking out and get the salary details

Am not talking about them using unofficial channel (friends, 3rd party agency) , but officially would my HR gave answers to them?

What I could think of is that they call up existing HR and ask to for a Yes/No answer and confirm employment like how the banks perform loan verification


TScubicc
post Jun 17 2018, 12:06 AM

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QUOTE(Tellmeyourstory @ Jun 16 2018, 11:02 PM)
Am still uncertain on Q2. If my potential employer call up my current HR to ask these question, will my HR reveal the details?
a.  Wouldn't that trigger my current superior that I am seeking out
b.  Revealing on company job grade trade secret, if any
c.  PDPA breaching?
d.  Open for exploitation where I could impersonate other HR and mention my colleague or boss is seeking out and get the salary details

Am not talking about them using unofficial channel (friends, 3rd party agency) , but officially would my HR gave answers to them?

What I could think of is that they call up existing HR and ask to for a Yes/No answer and confirm employment like how the banks perform loan verification
*
Q1: Wouldn't that trigger my current superior that I am seeking out?
Ans: Yes and it is perfectly fine. This would resulting to your immediate superior to pay more attention to you, provided he/she is a good superior. If he/she does nothing about it, this would also tells you that it is high time for you to leave the company since he/she is no longer interested in your career advancement within the company.

Just remember this, if the company (in the form of salary scheme, promotion, employment benefits) or your immediate superior (work opportunity, guidance) have been treating you well, the thought of leaving the company would not have comes to you in the first place.

Q2: Revealing on company job grade trade secret
Ans: As far as Malaysia employment industry is concern, it has been a trend as of today.

Q3: PDPA breaching?
Ans: The following question has been answered earlier. Please read again if you have overlooked the answer.

Q4: Open for exploitation where I could impersonate other HR and mention my colleague or boss is seeking out and get the salary details
Ans: In the PDPA release form, it will instructs candidate to inform their HR dept from their past employment with regards to the employment background check. They will usually get in touch with the HR from the last 2 companies only.

This post has been edited by cubicc: Jun 17 2018, 12:11 AM
sweet_pez
post Jun 18 2018, 10:02 AM

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QUOTE(cubicc @ Jun 15 2018, 01:42 AM)
I have come across a significant number of inquiries pertaining to employment background check by future employer and surprisingly, I found out there are more idiots who offers dumb advice like "why would you lie to your future employer in the first place" or "there is nothing to fear of if you were to reveal the truth" rather than to address the question in the most satisfying manner.

I will try my best to answer all of the FAQ based on my knowledge as to address the matter above.

» Click to show Spoiler - click again to hide... «


If any of the forumers  has questions of the above matter, feel free to drop me a line via this thread.
*
Based on your knowledge meaning you're a HR personnel? Asking out of curiosity.

As for Q1, a junior who is working in an MNC had his background checked before after the interview, before he was offered a position with the firm. The MNC contacted his previous company to look up some things about him. The MNC told him after the ex-employer said something untruthful about my junior and the MNC asked him to clarify on the matter. I'm not sure if he signed any PDPA release form. However, most of the time whereby your refusal to sign this may result in interviewer feeling suspicious that this person may have omitted some past employment details or have something to hide. This will lower the chance of employment, although not 100% of the time.

In Q3-4 you mentioned EPF statement. What about pay slip? IMO anything personal like EPF and payslip, the candidate have the right not to reveal to interviewer. However repercussion as someone mentioned before in a separate thread, is that, the company such as MNCs are not likely to employ you as apparently that's their policy (when they want to confirm you, you'll need to provide pay slip from previous company.

This post has been edited by sweet_pez: Jun 18 2018, 10:03 AM
nexona88
post Jun 18 2018, 01:01 PM

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very informative indeed..

seriously didn't know PDPA also involved.. good to know..
Topace111
post Jun 18 2018, 05:10 PM

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QUOTE(cubicc @ Jun 15 2018, 01:42 AM)
I have come across a significant number of inquiries pertaining to employment background check by future employer and surprisingly, I found out there are more idiots who offers dumb advice like "why would you lie to your future employer in the first place" or "there is nothing to fear of if you were to reveal the truth" rather than to address the question in the most satisfying manner.

I will try my best to answer all of the FAQ based on my knowledge as to address the matter above.

Q1: Will my future employer find out about my past employment without my knowledge?
Ans: The answer is no as there are Personal Data Protection Act, 2010 (PDPA) to prevent your past employment information being shared. However, it can be made possible if you have signoff the PDPA release form to your future employer. Candidates are also requested by the future employer to inform the HR dept from their past few companies with regards to the employment background check excercise. 

Q2: Who and what does the future employer usually prompted when they have come in contact with my previous employment companies?
Ans: They will usually contact the Human Resource dept of your company or the director of the company (if it is a small company without HR dept) to verify your employment history as below;
- Base salary and allowances
- Employment period
- Character and work ethics
- Resignation/termination
- Any restriction on future employment set by the previous employer
- Will your previous company reemploy you in future?

Q3: Can they check my past contribution to EPF via EPF Dept or my past employment via Human Resource Ministry (Jabatan Tenaga Kerja Malaysia)?
Ans: Fortunately no as all information from these departments are private & confidential.

Q4: Can my future employer make a request to view my EPF statement?
Ans: To view your EPF statement is no difference than to view your personal bank account statement or passbook. It is obvious your future employer has serious trust issue and I would strongly recommend for the candidate to abandon the job application.

If any of the forumers  has questions of the above matter, feel free to drop me a line via this thread.
*
Just to add that your information will not be applicable for banking industry coming 1 July 2018. Employee screening is a must now for prospective banking staffs and I believe HR will mandate the candidates to sign the PDPA form or they won't even process the application.

BNM does not require information on remuneration but that does / will not stop the banks from asking anyway.
TScubicc
post Jun 18 2018, 05:47 PM

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QUOTE(sweet_pez @ Jun 18 2018, 10:02 AM)
Based on your knowledge meaning you're a HR personnel? Asking out of curiosity.

As for Q1, a junior who is working in an MNC had his background checked before after the interview, before he was offered a position with the firm. The MNC contacted his previous company to look up some things about him. The MNC told him after the ex-employer said something untruthful about my junior and the MNC asked him to clarify on the matter. I'm not sure if he signed any PDPA release form. However, most of the time whereby your refusal to sign this may result in interviewer feeling suspicious that this person may have omitted some past employment details or have something to hide. This will lower the chance of employment, although not 100% of the time.

In Q3-4 you mentioned EPF statement. What about pay slip? IMO anything personal like EPF and payslip, the candidate have the right not to reveal to interviewer. However repercussion as someone mentioned before in a separate thread, is that, the company such as MNCs are not likely to employ you as apparently that's their policy (when they want to confirm you, you'll need to provide pay slip from previous company.
*
Failing to sign off the PDPA form will definitely put a candidate in a disadvantage position and it is the right thing to do. Understand this, PDPA act 2010 is created to protect information in the present as well as the past. As I recall, there is no such practice of having employment background check in the 80s or the 90s. It is obviously a practice that gives the employer an edge over employee. However, if everyone starts by NOT signing the PDPA waived form, you will start to see a dying practice of Employment Background Check.

The same goes for handing over your "pay advice". It is a practice that does not benefits the employee in anyway. If you are really good in what you are doing, it is only natural for you to command a premium price. Do take note that your annual salary is merely an investment for the company to generates greater return over time. Do you recall all of the hardwork and time that you have to put in throughout the years? The calls that you have attended after 6.00pm, weekdays and even holiday at times. Hence, go wild on your demand if you really have what it takes.

Remember, employer already has the advantage of examining the goods sold to them, and that is known as the "probation period". They are able to terminate your employment if your performance is not up to par. Probation period alone is good enough to protect employer's best interest. They do not need to know your salary scheme from the past as to dictates your salary scheme in the future. Just look at property sales for instant, do you refer to the selling price from the past just to determine the selling price of the property sold in the future? I don't think so.



TScubicc
post Jun 18 2018, 06:06 PM

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QUOTE(Topace111 @ Jun 18 2018, 05:10 PM)
Just to add that your information will not be applicable for banking industry coming 1 July 2018. Employee screening is a must now for prospective banking staffs and I believe HR will mandate the candidates to sign the PDPA form or they won't even process the application.

BNM does not require information on remuneration but that does / will not stop the banks from asking anyway.
*
The finance industry has a totally different employment regulation compares to the rest. For instants, Tan Sri Teh Hong Piow, the Chairman of Public Bank Group is retiring in 2019, however he is unable to appoint his child to take over his position as a Chairman of the board despite being the largest share holder. A finance institution is also unable to engage any senior management staffs of their liking without the approval of the Governor of BNM. Hell, even a husband and wife are restricted from working in the same department or company

Employment in the finance industry has stringent regulations. A prospective candidate must be a non-bankruptcy, has no criminal record and meet many other stringent requirements prior to gaining an interview session. Hence, HR from finance industry will usually engage a 3rd party to perform a background check on their candidate.

If you are in the finance industry, it safe to say that the Employment Background Check rules above do not applies to you.
sweet_pez
post Jun 19 2018, 09:16 AM

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QUOTE(cubicc @ Jun 18 2018, 05:47 PM)
» Click to show Spoiler - click again to hide... «

*
QUOTE(KoChun1 @ Jun 18 2018, 10:23 PM)
» Click to show Spoiler - click again to hide... «

*
Both of you have a fair share of view and realistically, I agree with KoChun1. Although with the PDPA act there are companies that follow closely, however, even if there's a breach the candidates will not know unless he/ she is close with the ex-company's HR and the HR division informed the candidate. Even so in this situation, as a candidate, will you report the potential employer? Although the answer is YES, you CAN make a report of this potential employer, rarely anyone do so so save trouble.

Yes my point is that, the candidate can choose NOT to sign the PDPA but this also mean the candidate should look elsewhere for a job. As highlighted, one of the member here mentioned all MNCs require a copy of payslip. If the candidate is not willing to provide, he/she should have little hope in working with MNCs. You can argue that a person has to be "so good" that others will hire them 'unconditionally' overlooking the procedure/ policy they have about the payslip. However there are not many people in this industry who are "that good", if any. Even if you are, probably they're willing to let the person go on the basis he/she is not able to comply with the company's basic policy of providing the payslip. The more resistant a person is, the more suspicious it will appear. This is speaking hypothetically though as I've not seen anyone take up such 'fight' with an MNC. All my friends working in MNCs provided their payslip.

TScubicc
post Jun 19 2018, 10:03 AM

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QUOTE(sweet_pez @ Jun 19 2018, 09:16 AM)
Both of you have a fair share of view and realistically, I agree with KoChun1. Although with the PDPA act there are companies that follow closely, however, even if there's a breach the candidates will not know unless he/ she is close with the ex-company's HR and the HR division informed the candidate. Even so in this situation, as a candidate, will you report the potential employer? Although the answer is YES, you CAN make a report of this potential employer, rarely anyone do so so save trouble.

Yes my point is that, the candidate can choose NOT to sign the PDPA but this also mean the candidate should look elsewhere for a job. As highlighted, one of the member here mentioned all MNCs require a copy of payslip. If the candidate is not willing to provide, he/she should have little hope in working with MNCs. You can argue that a person has to be "so good" that others will hire them 'unconditionally' overlooking the procedure/ policy they have about the payslip. However there are not many people in this industry who are "that good", if any. Even if you are, probably they're willing to let the person go on the basis he/she is not able to comply with the company's basic policy of providing the payslip. The more resistant a person is, the more suspicious it will appear. This is speaking hypothetically though as I've not seen anyone take up such 'fight' with an MNC. All my friends working in MNCs provided their payslip.
*
In the name of convenient, people usually failed the system. One may not condone with the act of breaching the privacy of others, but failing to make any report to the authority of a wrong doing would easily proved otherwise. It is not impossible to make changes, it is just not easy. The practice of asking for "pay advice" from a candidate is an act of suppressing the growth of employee's market. The Government has enacted laws to protect the citizens but it means nothing if the citizens do nothing about it.


Topace111
post Jun 19 2018, 10:16 AM

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QUOTE(sweet_pez @ Jun 19 2018, 09:16 AM)
Both of you have a fair share of view and realistically, I agree with KoChun1. Although with the PDPA act there are companies that follow closely, however, even if there's a breach the candidates will not know unless he/ she is close with the ex-company's HR and the HR division informed the candidate. Even so in this situation, as a candidate, will you report the potential employer? Although the answer is YES, you CAN make a report of this potential employer, rarely anyone do so so save trouble.

Yes my point is that, the candidate can choose NOT to sign the PDPA but this also mean the candidate should look elsewhere for a job. As highlighted, one of the member here mentioned all MNCs require a copy of payslip. If the candidate is not willing to provide, he/she should have little hope in working with MNCs. You can argue that a person has to be "so good" that others will hire them 'unconditionally' overlooking the procedure/ policy they have about the payslip. However there are not many people in this industry who are "that good", if any. Even if you are, probably they're willing to let the person go on the basis he/she is not able to comply with the company's basic policy of providing the payslip. The more resistant a person is, the more suspicious it will appear. This is speaking hypothetically though as I've not seen anyone take up such 'fight' with an MNC. All my friends working in MNCs provided their payslip.
*
I think global trend is moving towards protection of private data such as remuneration history. For example in US, certain states has already / going to implement a law that prohibits companies to even request for such information. We don’t have such law in MYS. However, these laws are rarely applicable to senior management or boards of directors as disclosure of these executives’ remunerations are considered good corporate governance. You can find out easily how much a CEO of a PLC earning nowadays compared to their GM/VPs.

In US also, the regulators clamp down hard on hidden non-competing clause / cartel arrangements to prevent employee to switch to a competitor unless it’s stated clearly in the offer letter. This happens in tech sector that involves the FANG companies. Just to share that in MYS, banks also have sort of non-competing arrangement in the offer letter. If you are currently working for a bank and wish to jump to another bank, you cannot leave your new bank within 1 year from joining or you may end up paying 6 months’ worth of your salary. It’s a very old banking requirement which Banks still apply to protect their staffs.

In certain industry such as sports, remuneration information is almost always public as the athletes normally have a higher say and bargaining power of where they want to go. Certain companies also make their remuneration data to be highly visible to attract talents to work there.

sweet_pez
post Jun 19 2018, 11:00 AM

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QUOTE(cubicc @ Jun 19 2018, 10:03 AM)
In the name of convenient, people usually failed the system. One may not condone with the act of breaching the privacy of others, but failing to make any report to the authority of a wrong doing would easily proved otherwise. It is not impossible to make changes, it is just not easy. The practice of asking for "pay advice" from a candidate is an act of suppressing the growth of employee's market. The Government has enacted laws to protect the citizens but it means nothing if the citizens do nothing about it.
*
You make a valid point. IMO it goes both ways - for employees to take action and for the government body to provide strong support to such action. Most people avoid filing report as we find it to be a "drastic measure" for a "small matter". Many people do not report crimes, what more of such act. As such is the mentality of Malaysians who are generally on the gentler side of being more forgiving with "it's okay la" behaviour.

QUOTE(Topace111 @ Jun 19 2018, 10:16 AM)
I think global trend is moving towards protection of private data such as remuneration history. For example in US, certain states has already / going to implement a law that prohibits companies to even request for such information. We don’t have such law in MYS. However, these laws are rarely applicable to senior management or boards of directors as disclosure of these executives’ remunerations are considered good corporate governance. You can find out easily how much a CEO of a PLC earning nowadays compared to their GM/VPs.

In US also, the regulators clamp down hard on hidden non-competing clause / cartel arrangements to prevent employee to switch to a competitor unless it’s stated clearly in the offer letter. This happens in tech sector that involves the FANG companies. Just to share that in MYS, banks also have sort of non-competing arrangement in the offer letter. If you are currently working for a bank and wish to jump to another bank, you cannot leave your new bank within 1 year from joining or you may end up paying 6 months’ worth of your salary. It’s a very old banking requirement which Banks still apply to protect their staffs.

In certain industry such as sports, remuneration information is almost always public as the athletes normally have a higher say and bargaining power of where they want to go. Certain companies also make their remuneration data to be highly visible to attract talents to work there.
*
It's true, and mostly done to protect the privacy of individuals (in this case, candidates). Which is why in US the common practice in resume is that candidates do not disclose their religion and photos are usually not attached. They are also not allowed to include in their job description on the preference for certain gender or skin colour. This is to reduce discrimination. However in Malaysia, it's very common to see ads appear as "Preferably male only" or "Priorities for x applicants" etc.

We are still far from reduction of discrimination but in hope, it will improve in future.
Tellmeyourstory
post Jun 19 2018, 02:28 PM

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QUOTE(cubicc @ Jun 17 2018, 12:06 AM)
Q1: Wouldn't that trigger my current superior that I am seeking out?
Ans: Yes and it is perfectly fine. This would resulting to your immediate superior to pay more attention to you, provided he/she is a good superior. If he/she does nothing about it, this would also tells you that it is high time for you to leave the company since he/she is no longer interested in your career advancement within the company.

Just remember this, if the company (in the form of salary scheme, promotion, employment benefits) or your immediate superior (work opportunity, guidance) have been treating you well, the thought of leaving the company would not have comes to you in the first place. 

Q2: Revealing on company job grade trade secret
Ans: As far as Malaysia employment industry is concern, it has been a trend as of today.

Q3: PDPA breaching?
Ans: The following question has been answered earlier. Please read again if you have overlooked the answer.

Q4: Open for exploitation where I could impersonate other HR and mention my colleague or boss is seeking out and get the salary details
Ans: In the PDPA release form, it will instructs candidate to inform their HR dept from their past employment with regards to the employment background check. They will usually get in touch with the HR from the last 2 companies only.
*
Q2- So as a HR personnel, you will tell your competitor/other company how much you are paying for this person over the phone? I am quite surprised shakehead.gif
TScubicc
post Jun 19 2018, 03:26 PM

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QUOTE(Tellmeyourstory @ Jun 19 2018, 02:28 PM)
Q2- So as a HR personnel, you will tell your competitor/other company how much you are paying for this person over the phone? I am quite surprised shakehead.gif
*

Forumers are to refrain from commenting if you have not read through the entire thread.
Tellmeyourstory
post Jun 19 2018, 04:07 PM

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QUOTE(cubicc @ Jun 19 2018, 03:26 PM)
Forumers are to refrain from commenting if you have not read through the entire thread.
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@cubicc Do enlighten me, I still couldn't find the answer lies on which line. Personal experience- HR never told me anyone is calling to verify. And according to my HR friend, even by verification, they will only answer on Yes and No basis instead of giving full details like XXX is currently earning RM YYYYY
fapman
post Jun 19 2018, 05:05 PM

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Good info!
So, if I refuse to sign the PDPA form during interview, the company can't do any background check with my previous employer?
But the question is, wouldn't the new company wondering why I refuse to sign the PDPA form & feels like I'm hiding something from them?
Wouldn't this trigger something from their end?

TScubicc
post Jun 19 2018, 09:42 PM

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QUOTE(fapman @ Jun 19 2018, 05:05 PM)
Good info!
So, if I refuse to sign the PDPA form during interview, the company can't do any background check with my previous employer?
But the question is, wouldn't the new company wondering why I refuse to sign the PDPA form & feels like I'm hiding something from them?
Wouldn't this trigger something from their end?
*
Similar concern has been addressed earlier.

This post has been edited by cubicc: Jun 19 2018, 10:27 PM

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