A.
Dear Client,
Background verification (BGV) check is a process many organizations carry out to verify the information provided by the candidate during hiring, because it allows employers to confirm that their employees are not using false or stolen identities to gain employment. In case of a negative background verification check, an employer can even reject/terminate the employment of the candidate, following the service rules of the establishment,t that adversely affects the future career in the job market. An employer cannot create and provide a negative remark after the resignation of an employee, because a negative remark like termination requires the involvement of an employee while he is on the rolls of the Company. While you tendered your resignation, serving the notice period in MNC1, instead of accepting your resignation, they terminated your service without any notice or holding any departmental inquiry. Termination or dismissal other than a disciplinary action for proven misconduct amounts to illegal termination/ retrenchment and is defined as an industrial dispute under Section 2A of the Industrial Dispute Act, 1947 which also violated the mandatory provision of Sec.25F and 25N of the I D Act that prescribed certain conditions to comply with by the employer before termination/retrenchment of a workman/employee from the employment. The actions of management appear to be highly arbitrary and illegal, amounting to victimization and unfair labor practices. Despite a clean service record, even if an employer provides any negative remarks against an ex-employee, the action may be considered unfair labour practice that also infringes the fundamental rights as guaranteed under Article 21 of the Constitution of India and the employer may face prosecution once the matter is litigated before the Court or Tribunal by an aggrieved employee. So, in case your apprehension of a negative BGV report from MNC1 turned into reality, serving a legal notice to the MNC1, you can raise an industrial dispute before the concerned Labour Commissioner for redressal of the complaint failing which you can approach directly the Industrial Tribunal/Labor Court concerned for adjudication seeking reinstatement with back wages and other service-linked benefits provided you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act. Otherwise, in case you are holding the position of Manager/Administrative Officer in the Company, you have to file a civil suit before the Civil Court seeking appropriate relief in the matter. In the case of Punjab Land Development Corporation Vs Labour Court, 1990 (II) LLJ, 70 SC, the Supreme Court held that The expression ‘retrenchment’ is not to be understood in its narrow, natural and contextual meaning, but is to be understood in its wider, literal meaning to mean termination of service of a workman for any reason whatsoever. Further, in the case of Santosh Gupta Vs State Bank of Patiala AIR 1980 SC 1219, the Supreme Court ruled that the expression retrenchment must include every termination of the services of a workman by an act of the employer. If you are an employee of the IT Company then be informed that to restrict IT Companies from exploiting their employees by playing double standards, the Division Bench of the Karnataka High Court in the case of Commissioner of Income Tax v. Texas Instruments India Pvt Ltd (2021) 435 ITR unambiguously held that the IT sector employees considered to be "workmen" under Section 2(s) of the Industrial Dispute Act, 1947. So, in the given scenario, to remove a stigma in your service career that damages your career opportunities, you have to fight back by opting for the aforesaid provisions of relevant laws. If required, consult with an Advocate experienced in service matters to navigate the issue in the right way.
Posted On 09-Jun-2025
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