Anonymous asked in Business & FinanceCareers & EmploymentLaw & Legal · 1 decade ago

Is new employer allowed to check salary with previous employer?

My work colleague revealed to me that she always lies about her salary to new employees to ensure they pay more. I said this was risky as my last employer confirmed by salary with my previous employer when they asked for a reference (they didn't ask me if it was OK). She said that was naughty of them and they're not allowed to do that. Assuming she's telling the truth and presumably withholds her P45, is she correct? I can't imagine my last employer would've done it if it was illegal.

7 Answers

  • 1 decade ago
    Favourite answer

    Yes. Legally, a previous employer is only supposed to state your last salary, position held, and whether or not you'd be rehired.

  • Well I see your in the UK

    Here in the states it's illegal for your past employer to answer any questions about pay. They can only ask 2 questions from your previous employer 1. Dates of first and last day of work 2. Are you eligible for rehire. An educated HR employee would know not to answer any other questions. Most companies don't answer questions over the phone. I'm a Purchasing manager and when people call me about my past employee's I ask for a fax # and I fax the question and answer that I'm allowed which is the two I mentioned.

    If I answer a question about my past employee's pay, I could be sued. I always lied about my pay in the past. The risk is worth it. I was making 45 a year I told my new prospective employer I was earning 55 a year so so they offered 60 a year. If I was honest they would of offered only 50. So the risk I took paid off by 10 grand. If they found out I lied they would of just past me up for the next employee with no consequences. I would of just applied somewhere else

    Responce to Prosey.

    You can go ahead and sign what ever the prospective employer wants but your past employer cannot give the information. It's not illegal for the prospective employer to ask but it's illegal for the past employer to answer.

  • Judy
    Lv 7
    1 decade ago

    The potential employer can ask the previous employer. The previous employer doesn't have to answer if they don't want to.

    Many employers today ask potential employees, as a late step in the hiring process, to bring in a pay stub or two. If your colleague continues to lie, sooner or later she's going to get busted one way or the other, and either not get a job she wants or get fired soon after starting.

    Oops, the above answer is US and since you refer to P45's, you aren't in the US. I don't know what the law is elsewhere, but logically there should be something similar or anyone could just lie.

  • 1 decade ago

    Salary is supposed to be kept confidential. Unfortunately not all businesses stick to that policy. When submitting your salary preferences always remember that it is simply a jumping off point. Always ask for more than you are willing to accept. If the company wants you they will negotiate with you about salary. If you start too low then you have no where to go. If they check on your previous salary and find that it is lower than you put down then explain that you were under paid and that you know how much you are worth and feel that you are unwilling to accept substandard pay anymore.

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  • Anonymous
    4 years ago

    What an corporation can say approximately earlier workers relies upon on your community rules and precedent placing lawsuits on your state. some states enable an corporation to assert despite they desire, as long because it extremely is genuine, whilst different states cut back the counsel provided to dates worked, call, and earnings selection. with a view to be sure of the guidelines and how they are interpreted in CO you need to touch a community employment criminal expert. There are a pair of innovations that an criminal expert can do for you. The criminal expert can deliver your former corporation a end and Desist letter which in criminal words tells the corporation to end what they are doing or possibility a lawsuit. No, it does no longer have the comparable consequence if a non-criminal expert does this. you desire an criminal expert who can cite rules and circumstances in this problem alongside with the ideal criminal records. yet another difficulty an criminal expert can do for you is to start a civil lawsuit against your former corporation.

  • mark m
    Lv 7
    1 decade ago

    Yes he has the right to do so, weather he will get it from your former employer or not it is up to them.

  • prosey
    Lv 5
    1 decade ago

    You new (prospective) employer can request that you sign permission for them to check this information - you can legally refuse to sign the request but you will be passed up for someone willing to do so.

    all my best.

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