- While some businesses reserve the right to dismiss employees for a variety of reasons, others set specific policies for defining when an employee is eligible for termination. Once these companies hire new workers, they are bound by the terms of the policy, which could be a matter of corporate ethics or government regulation. Dismissal policies usually cover situations such as inadequate performance, insubordination, frequent absence and refusal to follow company policies. None of these provisions covers the information that an employer would learn through a background check, thereby preventing workers from losing their jobs if specific information comes to light in the future.
- Labor laws, including labor contracts that unions and employers agree to and individual labor contracts with employees, place further restrictions on background checks and termination policies. Union agreements sometimes require employers to show special cause for terminating workers except during times of authorized labor cuts. Such contracts can also limit an employer's ability to run a background check unless there is cause to doubt a worker's ability to perform work-related tasks. In cases where there is no formal employment contract or union agreement, employers have the right to run background checks without informing employees. Employers can also dismiss employees for any reason that doesn't fall under antidiscrimination legal protection.
- One of the most likely reasons for a business to dismiss an employee because of a background check is a revelation that indicates inaccurate or misleading information on a job application, resume or during the interview process. In these cases, employers who aren't bound by a union agreement or employment contract can dismiss employees freely. For example, if a worker provided a false employment history to appear more highly qualified, or misrepresented an educational credential by claiming to have graduated from a program that was never actually completed, that employee's ability to perform a job, along with personal integrity, falls into question.
- Background checks aren't perfectly accurate and sometimes contain inconsistencies and omissions, depending on the sources employers use. If you feel as though you've been dismissed unfairly because of a background check, you have the right to take legal action against your former employer. An attorney can help you understand your employment contract and labor laws that apply to your situation, and if you win your case you may be entitled to court costs and payments for lost income while your former employer also incurs a fine for its actions. However, if your dismissal is the result of factual information that your background check proves but you failed to provide, you are unlikely to be successful in seeking damages.