Employee Background check in Germany | Skuad (2024)

Germany, known for its innovation and thriving tech scene, is a coveted destination for remote and distributed tech teams.

In the heart of Europe, the country boasts a rich talent pool that companies worldwide are eager to tap into.

But with hiring employees comes the responsibility of conducting employee background checks.

In Germany, these checks are not just essential for ensuring a safe and trustworthy workforce but also in aligning with the country's stringent data privacy regulations. So, background checks are available on Skuad when you make us your EOR partner.

Moreover, they form part of the employment contract where pre-employment screenings and so-called background checks are deemed necessary.

What is an Employee Background Check?

An employee background check, also referred to as an employment background check, is a review of a person's commercial, criminal, and occasionally financial records. Typically, these checks are conducted by employers to validate the information provided by a job applicant and to ensure that they are a safe and reliable fit for the organization, thereby establishing a sturdy employment relationship. Part of these checks could involve a criminal background check and analyzing the applicant's financial situation.

In the context of hiring tech talents in Germany, background checks can serve as a valuable tool in the hiring process. They can help in assessing a candidate's suitability for a role based on their past behavior and actions.

What language do you use for background checks in Germany?

In Germany, the official language for conducting background checks is German. However, in multinational companies or for positions that require a high level of English proficiency, background checks may also be conducted in English. It's vital to remember that the candidate must understand the language in which the background check is performed to ensure transparency and consent.

Things to Know When Performing a Background Check in Germany

Performing a background check in Germany is not as straightforward as you might think. The country has stringent data protection laws that heavily regulate the process. Here are some critical factors to keep in mind when conducting a background check in Germany:

Data Protection

Germany's data protection laws, or German laws, are some of the strictest in the world. German employers must comply with the General Data Protection Regulation (GDPR), which protects individuals' privacy rights and governs how personal data is collected directly, stored, processed, and shared. Failure to adhere to these rules can result in heavy fines and potential legal repercussions. Hence, it's crucial to have a thorough understanding of GDPR requirements and have a competent data protection officer before conducting a background check.

Candidate Consent

Before conducting a background check, employers must obtain explicit, informed consent from the candidate, usually referred to as written consent. The candidate must be fully aware of what the check involves and the type of information that will be collected during personal interviews. The request for the applicant's consent should be presented in a language the candidate fully understands and separate from other documents or agreements.

Relevance of Information

The data collected during a background check should be relevant and necessary for the role. For instance, while it might be crucial to verify a driver's license for a delivery driver, it might not be relevant for a software developer. Similarly, credit checks might be relevant for financial roles but not necessarily for others. Understanding and implementing effective global hiring and onboarding strategies can guide this process.

Storage and Disposal of Data

Once data has been collected, it's critical to ensure it is stored securely to prevent unauthorized access. German laws also place limits on how long personal data can be stored. After the data has served its purpose, it must be properly disposed of or anonymized. It's vital to be aware of these time limits and ensure compliance. Furthermore, the legal provision here includes handling financial information and data about job applicants.

Equality and Non-discrimination

German law protects candidates from discrimination based on information that may be revealed during a background check. This includes protection from discrimination based on age, race, gender, disability, religion, or sexual orientation. Employers must be careful to ensure that the information obtained through background checks is not used to discriminate against candidates, emphasizing the importance of ethical hiring.

Performing background checks in Germany requires a delicate balance between the employer's need to know and the candidate's right to privacy. A thorough understanding of the legal context and respect for the candidate's rights can help ensure a fair, legal, and effective background check process. When hiring or relocating employees internationally, these considerations become especially important. Businesses must also be mindful of the prior employment history of their potential hires, which can be gathered through direct inquiry with the previous employer. You can learn more about hiring in Germany here.

What types of background checks do businesses commonly run on German employees and contractors?

When hiring employees or contractors in Germany, there are several types of background checks that employers commonly undertake. Each type serves a specific purpose and provides a different perspective on a candidate's history and qualifications.

Criminal Records Check

One of the key checks conducted in Germany is a criminal record check. This process involves obtaining a certificate of good conduct, also known as a 'Führungszeugnis', which outlines any criminal activities the individual has been involved in. It's crucial to note that this check can only be done with the explicit consent of the candidate. It provides an employer with assurance that the prospective employee doesn't have a criminal past that might pose a risk to the business or their colleagues. Employers also ask for a driving license as an additional form of identification during the pre-employment process. For more details on how to run an international background check, you can read this article.

Employment Verification

Verifying a candidate's employment history is a standard part of the background-checking process. This involves reaching out to the candidate's previous employers to confirm their employment dates, roles, and responsibilities. Employment verification can help to confirm the accuracy of the candidate's resume and provide insights into their work ethic, performance, and potential fit within the new role.

Educational Verification

In roles that require specific educational qualifications, employers may choose to verify the candidate's academic credentials. This typically involves contacting the educational institution that granted the degree or certification to ensure its legitimacy. In some cases, it might also involve verifying grades or other specific academic achievements.

Reference Checks

Employers often reach out to personal and professional references provided by the candidate. These can include former employers, coworkers, or teachers. References can offer personal insights into the candidate's character, reliability, skills, and strengths and weaknesses in a professional or personal setting.

Financial Background Check

For roles involving financial responsibilities, a financial background check may be appropriate. These checks may include a credit check or a review of financial litigation history to ensure the candidate is financially responsible. This type of check is typically used for roles in finance or roles that involve handling money.

It's important to remember that any background check must be performed with the candidate's knowledge and consent and must be relevant to the role in question. Misuse of this information could lead to legal complications, so employers must understand and adhere to local laws regarding employee background checks.

Processes involved in conducting background checks in Germany

Conducting a comprehensive and lawful background check in Germany involves several crucial steps:

Consent Acquisition

The very first step in the process involves obtaining the candidate's explicit consent. This should be in writing and clearly explain the type of information that will be collected and how it will be used. This step is vital to respect the privacy rights of individuals, a fundamental tenet of effective global hiring.

Collection of Personal Data

Once consent is secured, the employer can proceed to collect necessary personal data from the candidate. This may include details such as full name, date and place of birth, past employers, educational institutions attended, and references.

Verification

The collected data is then verified through appropriate channels. For instance, a certificate of good conduct can be obtained from the Federal Central Criminal Register with the candidate's permission, while educational qualifications can be checked against records from educational institutions. A guide on how to run an international background check might provide more insights into this process.

Reference Check

Reference checks are an important part of the background check process. This involves reaching out to the candidate's previous employers or other listed references to inquire about their experience, skills, work ethics, and more. An effective sample letter of agreement between employer and employee can provide a good framework for this interaction.

Risk Assessment

Following the verification process, employers should carry out a risk assessment. This step involves evaluating the gathered information to identify any potential risks that may affect the candidate's suitability for the role. For instance, a criminal record might be a risk factor for certain roles but irrelevant for others.

Documenting the Process

It's important to keep detailed records of the background check process, including the consent forms, collected data, and results of the verification. This documentation can serve as a crucial legal record in case of disputes.

Communicating the Outcome

Regardless of the outcome, it's essential to communicate the results to the candidate. If the background check results impact the hiring decision, the candidate must be informed, and they should be allowed to dispute inaccuracies if any.

Data Disposal

After a specified period, employers are required to dispose of the collected personal data securely to respect the candidate's privacy rights and comply with German data protection laws.

Each of these steps is crucial to ensure a fair and transparent background check process. Understanding the legal and tax risks of remote employees working from abroad is essential for businesses expanding globally. These procedures, when adhered to correctly, can aid in hiring the right tech talent and building a robust team in Germany.

Are Background Checks Legal in Germany?

Yes, background checks are legal in Germany, but they must comply with the country's strict data protection laws. Employers need to be transparent about their background check process, and the candidate's consent is mandatory.

Furthermore, employers must ensure that they are not discriminating against candidates based on the information obtained during the background check. For more details, employers can refer to the Federal Data Protection Act (Bundesdatenschutzgesetz or BDSG).

Planning to hire in Germany? Here's how Skuad can help

Background checks in Germany are made streamlined, efficient, and hassle-free when you partner with Skuad as your Employer of Record Platform.

When it comes to employment screening, Germany requires a few background checks such as criminal record checks, subject to strict privacy laws and ensure the prevention of any sort of discrimination.

This might appear straightforward, but if you're hiring internationally, all these compliance obligations can become complex for an overburdened in-house team.

With Skuad as your EOR Partner, you can not only effortlessly hire, onboard, pay and manage your distributed team, but also get support for background checks and screening in Germany when considering hiring in the country.

Get in touch to learn how Skuad can help you hire remote teams in Germany.

FAQs

Do different organizations in Germany require different background checks?

Yes, different organizations in Germany may require different background checks depending on the nature of the job, its responsibilities, and the level of security needed. These could range from general identity verifications to extensive security checks in industries like finance, healthcare, or national security.

What is a background check called in Germany?

A background check in Germany is typically referred to as a "Polizeiliches Führungszeugnis," which translates to "Police Clearance Certificate." This document provides information about a person's criminal record, if any.