Read this before giving your old payslip to new employer

Here’s a situation: You applied for a job, nailed the interview and the new company’s human resources department requests your previous payslip for the hiring to take place.

What should you do?

Many gainfully employed Malaysians would have encountered this situation. Some would provide the payslip to avoid the hassle, and others would redact the pay. Some would refuse the request.

However, requesting a payslip is not prohibited by law, and it is not a legal requirement for the candidate to present proof of the previous salary either.

Requesting your previous payslip

Can your new employer request your previous pay slip?

Yes, they can. However, some employers do not bother.

Many countries prohibit this legally.

Your new employers might request your payslip for the following reason.

1. As proof of employment from your previous employer.

2. To verify your EPF, Socso and Tax ID.

3. Review your previous salary.

According to Human Resource practitioner Chandru Kanasen, the standard answer you will get is to verify the salary stated on the application form.

Many Malaysians think this practice exists to lowball their salary during negotiations.

Chandru stressed that this action of using the previous salary to lowball is unethical.

“This only happens in some Malaysian companies, which is slowly changing. Most multinational companies do not ask for this,” said Chandru.

Polls and human resources practitioners

Alex Man, a recruitment consultant, recently posted a poll on LinkedIn. He asked if it’s appropriate for a hiring company to request copies of an applicant’s recent payslips to determine their remuneration package.

Some 10,500 people voted. 92% of the respondents overwhelmingly rejected the idea of providing the payslip.

Many said that revealing old pay slips would negatively impact a candidate receiving their actual value. 

A hiring manager who wishes to remain anonymous said sometimes, the employer wants to test the integrity of the applicant.

“When the previous salary provided does not check out, it gives them an idea that you will lie for financial gains,” added the hiring manager.

Many human resources practitioners deem that this practice would weed out those lying about inflated earnings. Others argue that this will harm a candidate receiving their true worth. 

What is your right?

All that said, can you reveal your previous pay voluntarily?

Yes. If you feel confident that your private information will remain secure with the new employer and that they will not lowball, you can give them the payslip.

But before that, check if you have signed a non-disclosure agreement with your previous employer. 

You will be breaching the confidentiality agreement if you share confidential information. Your previous salary will usually be deemed confidential information under the employment contract.

You are also under no obligation to share this information with anyone. The law doesn’t require you to do this.

Nevertheless, Chandru added that applicants usually have to state their previous salary. The application form would require the applicant to state the previous and expected salary.

If the new HR manager is persistently asking you to provide the actual pay slip, inform them politely that you have a confidentiality agreement with your previous employer. 

But do remember, the employer might not offer you employment for not adhering to their company policy.