Dear Gambhir, It depends on 1) The HR policies followed by you company 2) The performance of the employee 3) Do you give more importance to education or performance ? My opinion - Yes, the employee shouldnt have forged his documents.... but i guess its work performance that matters the most ..... If the company is gaining from the employee then i dont see any reason why one needs to give more credence to the certificates .... After 3 yrs you realised that the docs were forged... are you willing to let the HR dept be a laughing stock ? Having said that, you know best .... what step needs to be taken depends on a whole lot of other factors apart from the ones mentioned above.. Regards Rashmi