Failed background checks are new normal, will 2023 be a year of layoffs?

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Failed Background Checks became new normal for layoffs in 2023
Layoffs are a difficult decision for companies but 2023 has been a year of layoffs. Top tech companies have either frozen the hiring process or laid off employees.

The year 2022 became a topic of discussion for layoffs based on two grounds which are Failed Background Checks and Moonlighting.

Layoffs are a difficult decision for companies but 2022 has been a year of layoffs. Top tech companies have either frozen the hiring process or laid off employees. This year nearly 1 Lakh employees lost their jobs from top tech companies like Amazon, Meta, Twitter, and many more.

Layoffs due to Failed Background Checks

India top two Employers laid off the employees due to Failed Background Checks. Cognizant India reported 6 percent involuntary attrition in the September ending quarter of FY22, which also includes the sacking of employees due to failed background checks.

The involuntary attrition can be thought of as a euphemism for sacking. Cognizant India Head Rajesh Nambiar said that a few employees were sacked due to failed background checks and 6 percent involuntary attrition in the quarter that ended September 30, 2022, also included. However, he did specify the exact number of employees sacked due to failed background checks.

Accenture in India fired a few employees as they presented fake documents and experience letters to obtain jobs with the organization.

Accenture in India said in a statement, “We have discovered an effort to use documentation and experience letters from fraudulent companies to obtain offers of employment from Accenture in India.”

“We have exited people who we confirmed took advantage of this scheme. We have taken action to ensure that there will be no impact on our ability to serve our clients”, the company said in the statement.

The company further said, “We are continuing to hire, and honour existing job offers for qualified candidates.”

Layoffs due to Moonlighting

Happiest Minds Technologies has said moonlighting is unacceptable for the company. The company has laid off a few employees engaged in dual employment who have been fired over the last 6-12 months. However, the company did not disclose the exact number of layoffs.

Wipro also laid off 300 employees who were found working with its competitor companies at the same time employment with Wipro. Wipro chairman Rishad Premji also described moonlighting as “cheating plain and simple.” Infosys fired a few employees in recent months for moonlighting. However, the company did not disclose the exact number of layoffs.

Additionally, now companies have come forward to implement policies on moonlighting. Also, Amid layoffs and retrenchment across various sectors in the country including in IT, Minister Bhupender Yadav has said that Layoffs are deemed illegal if not carried out as per Industrial Disputes (ID) Act.

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