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 Employment Background Check, The Real Deal!

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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.
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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.
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.
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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.

Topace111
post Sep 3 2019, 10:39 AM

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Good luck joining a financial institution then. Employee background check is mandatory:

http://www.bnm.gov.my/index.php?ch=57&pg=137&ac=681&bb=file

Just an extract as preview:
"8.1 A financial institution must request for references from all the individual’s current and former employers in the period of seven years up to the date of application for employment."

And there is statutory declaration under paragraph 9.1 if you are interested in reading further ...

 

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