They will make phone call(s) to the company(ies) where you've ever been worked and ask some questions (mostly your work experiences and duties) to find out if your reference letter, experience or resume were doctored up.
Generally speaking, the situation is not very tough to handle and the process will last a reletively short period (1-2 months maybe) if the background checking is made before IELTS or the selection interview. BUT if the background checking is made after the interview it will be a extremely bad news for you, it will take you 1-2 years for you to get any positive reply from the Embassy and whether you could get LP or not would depends.
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