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If you’re looking to build globally distributed teams, India is one of the leading countries for remote hiring and outsourcing. India offers employers access to an abundance of qualified workers who can help them succeed in their business goals. Furthermore, Indian labor laws are relatively flexible compared to many other countries so employers have considerable freedom when deciding how they want to structure their contracts with employees from this region. Of course, you’ll need to know how to perform a background check in India.
Background checks are mandatory when it comes to hiring globally. They allow employers abroad to ensure that all candidates have the necessary qualifications and the ability to meet any laws or regulations related to work permits and visas in India. So Skuad does background checks when you partner with us for EOR.
It is essential for companies considering hiring in the sub-continent to carry out a background check in India. This helps reduce risk for new hires and ensures compliance when relocating personnel across borders.
What you need to know when performing a background check in India
Verifying a candidate's information through background checks is an important part of the recruitment process. This includes checking references, looking into education and employment history, and researching other relevant details such as criminal records or credit scores.
In India, certain guidelines must be followed when it comes to background checks. For instance, employers have a legal obligation to do criminal record checks on candidates applying for specific roles before they can start working in India. This involves examining police reports as well as confirming any qualifications from international institutions if necessary. On top of this, some companies may opt to ask for further information like credit scores or driver’s license documents depending on their particular needs.
Employment history
In terms of an employment background check, India-specific regulations require some data points to be collected, but also handled and digitally stored in a strictly secure manner. Employment history isn’t one of these data points. Nevertheless, recruitment needs to know and confirm this information.
When filling a position, it's important to look beyond the history and assess a candidate's professionalism and commitment in previous roles. Verifying their employment background proves that they have the experience needed for the job, especially when hiring for higher-level positions. Such checks can ensure you find reliable employees.
Educational background
It's normal for any organization to ensure that job applicants have the required skills and experience for any given position. To achieve this goal, conducting thorough background checks is essential in order to verify whether or not the candidates have actually attained their declared educational qualifications — especially for specific roles that require particular certifications or licenses.
In today's remote hiring environment, online certifications are abundantly available. It is imperative for organizations to make sure that these certifications are up-to-date and valid — and that the candidates can truly bring the value they claim to the table with their qualifications. In addition, organizations should also ensure that any educational background checks conducted include a comprehensive review of job applicants' transcripts or other relevant documents in order to verify their credentials.
Medical screening
As an employer, you are allowed to do a medical examination prior to hiring someone and can deny those who refuse the tests, as long as anti-discriminatory laws are adhered to. Note that the Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Prevention and Control) Act of 2017 forbids any HIV testing without informed consent. For the best results in recruitment, only carry out medical examinations if there is an obvious connection between the employee's health status and their job duties.
Criminal background check in India
In terms of a criminal background check, India does not necessarily require them by law. However, they may be necessary depending on the type of position and organization, such as those involving positions of trust or working with minors. Employers should define their own policies around criminal record checks to ensure compliance with local laws and regulations.
Credit history
Background verification in India may also extend to an applicant’s credit history, depending on the industry. Good credit history is essential when interviewing prospective employees for a role in finance, for example. It can provide insights about how the individual handles money, reveal signs of financial difficulty, show evidence of timely loan payments, and so on.
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Requirements for background check in India
Verifying the background of potential employees by employers has become increasingly common in India. Although each industry may have its own verification practices, some general checks include verifying:
- A candidate’s educational credentials
- A candidate's previous work history
- Standard identity checks
- Screening for criminal activity
The Indian law concerning the collection of personal information (i.e. anything that can identify someone) as well as sensitive personal data is regulated under Information Technology (Reasonable Security Practices & Procedures and Sensitive Personal Data or Information), Rules 2011 (SPDI Rules) along with its parent legislation — the IT Act 2000. Sensitive data can include:
- Financial details
- Physical health condition
- Mental state
- Sexual orientation
- Medical records and history
- Biometric info
In a nutshell: The SPDI Rules stipulate that entities must get prior written consent before collecting these sensitive personal data points. If the information obtained during a background check falls within the sensitive personal data category then obtaining written permission is necessary beforehand.
Understanding these compliance sticking points should be an important part of your global hiring strategy.
Steps in conducting background checks in India
When conducting an employment background check in India, companies tend to hire agencies to help with the process. Here are the steps that are typically included:
- Cross-reference data with the candidate's previous office(s) of employment
- Check for any mention of the candidate in criminal records
- Connect with institutes to verify educational background
- Verify the candidate’s address by sending people on-site if necessary
- Report back to the company and let hiring managers decide on finalizing the candidate
In terms of a background screening, India-based companies and international service providers can assist with paid plans. Generally, you won’t find a free background check. India court records and criminal history checks will cost you a minor amount.
Benefits of background checks
Conducting background checks on potential employees is not only essential for regulatory compliance, but it also helps ensure the safety, security, and reputation of your company. There are also additional benefits to be gained from performing these checks:
- Verifying that the job candidate is who they declare themselves to be – including confirming their identity, address, and employment record for accuracy. This allows employers to make sure that the information provided by applicants is accurate and reliable.
- Ensuring that job seekers have all crucial qualifications or experience necessary for the role. By performing this check, companies can ensure they are hiring qualified individuals with relevant work experience and/or education required for a position.
- Safeguarding employers against any potential legal issues associated with hiring someone who may not meet applicable standards required by law. Background checks can help protect businesses from potential claims or lawsuits due to negligence in selecting employees.
- Ensuring sound decision-making regarding new hires. Having taken steps to confirm each individual's credentials gives an extra layer of assurance when it comes time to decide which applicant should fill which position.
A background check in India is not just a compliant and standard practice, it’s a crucial safeguard providing multifaceted benefits for your international expansion efforts.
Are employee background checks legal in India?
There are no laws prohibiting background checks in India as long as applicable data protection regulations are adhered to. This includes the storing, transferring, and processing of sensitive personal information belonging to those located in India. When it comes down to who conducts these background checks – either an employer or a third party – there is no difference between them legally speaking. However, many organizations prefer outsourcing such tasks due to their lack of expertise or in-house manpower to conduct assessments like these.
It’s best practice to seek out an Employer of Record like Skuad when building your remote team in India.
Planning to hire in India? Here’s how Skuad can help
Looking to grow your team in India? Skuad’s platform is the all-in-one employment and payroll platform you need to hire, manage, and pay employees all over the world from one place.
By making Skuad your EOR partner, you can avail background check services on our platform.
Skuad helps you easily comply with all employment laws in India, helping you reduce legal risks and fines. We can also advise you on the legalities of things like background checks, as well as provide an optimal employee experience to your workers. Leave the complexities of hiring and payments to us so that you can focus on growing your teams in India and beyond.
Got questions? Speak to our experts today!
FAQs
Are background checks legal in India?
Yes, background checks are legal in India. In fact, many companies in India conduct background checks on job candidates as part of their hiring process. The practice is regulated by the Personal Data Protection Bill, which outlines the types of personal information that can be collected and how it can be used.
How much does a background check cost in India?
The cost of a background check in India can vary depending on the type and extent of the check required. The price may also depend on the service provider or agency conducting the check. For example, a basic background check, which may include verification of education and employment history, could cost around Rs. 500-1000 ($7-$14 USD). A more extensive check that includes criminal record verification and reference checks could cost upwards of Rs. 2,000-3,000 ($27-$40 USD).
How long does a background check in India take?
A basic background check that includes verification of education and employment history may take around 3-5 days to complete, while a more extensive check that includes criminal record verification and reference checks may take up to 7-10 days or more.
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