What you need to know when performing a background check in India

India is a significant player in the global remote employment and outsourcing market, offering a sizable pool of highly skilled laborers to help your business grow. India’s relatively permissive labor laws allow businesses greater contract structuring freedom in addition to its skilled labor pool. However, controlling the intricacies of background checks in this case is crucial to ensuring that the recruiting procedure is both lawful and efficient.

An essential component of any foreign employment strategy is background checks. They grant firms the power to verify applicants’ qualifications, ensuring they meet all prerequisites and adhere to Indian regulations on work licenses and visas. This proactive approach lowers the risks associated with employing new staff and fosters a secure environment for global remote teams.

Companies on the subcontinent who are considering expanding their workforce must prioritize doing extensive background checks. By safeguarding both the employer’s and the employee’s interests, this encourages a transparent and lawful employment procedure. By proactively addressing these challenges, you can securely leverage India’s vast talent pool and form productive, geographically distributed teams.

Requirements for background check in India

Conducting comprehensive background checks to verify a candidate’s information is a fundamental aspect of the hiring process, applicable both in India and on a global scale. This encompasses scrutinizing references, validating education and employment records, and researching pertinent details such as professional licenses and criminal history.

Compliance and Legal Requirements:

Criminal Record Checks: In India, legal obligations necessitate employers to perform criminal record checks for specific roles before making hiring decisions. This involves examining police reports and validating qualifications from international institutions if required.

Employment History: While not explicitly mandated by law, scrutinizing employment history is valuable for confirming a candidate’s experience and professionalism. This practice is particularly crucial for senior positions, ensuring the recruitment of reliable and qualified individuals.

Educational Background: Thorough background checks extend to validating stated educational qualifications, especially for roles requiring specific certifications or licenses. This rigorous process ensures that candidates possess the educational credentials they claim, substantiating their ability to deliver the claimed value.

Medical Screening: Pre-employment medical examinations are permissible in India, provided that anti-discrimination laws are strictly adhered to. Notably, HIV testing necessitates informed consent. It is imperative to conduct medical checks only when relevant to the job duties and deemed necessary.

Credit History: In certain industries like finance, background verification may encompass a review of a candidate’s credit history. This practice offers insights into their financial responsibility and aptitude in handling monetary matters.

Steps in conducting background checks in India

Businesses frequently use agencies’ services to expedite the employment background check procedure in India. This thorough process typically entails cross-referencing information with the candidate’s prior employment, looking up the candidate’s name in criminal records, contacting educational institutions to confirm the candidate’s educational background, and, if required, sending staff to the candidate’s address to confirm it. After doing these actions, the agency provides the business with a thorough report that hiring managers can use to decide which candidate to offer a final interview. Since free background checks are typically unavailable, both India-based businesses and foreign service providers offer premium plans in an effort to expedite the background screening process.

Benefits of background checks

Conducting background checks on potential hires is not only a legal requirement but also a vital measure to safeguard your company’s safety, security, and reputation. Additionally, there are multiple advantages associated with the implementation of these checks:

1. Authentication of a candidate’s identity, address, and work history ensures businesses can make informed decisions by relying on accurate and trustworthy data provided by candidates.
2. Verification of critical credentials and work history necessary for the position ensures that employers select candidates equipped with the training and expertise required for a specific role.
3. Adhering to relevant standards helps minimize potential legal concerns, protecting companies from litigation or claims arising from errors made during the hiring process.
4. A thorough examination of applicants’ qualifications instills confidence in selecting the most suitable candidate for each position and contributes to informed decision-making throughout the hiring process.

In India, conducting background checks is not merely a procedural compliance; it serves as an indispensable safety measure, offering a myriad of benefits to businesses with international expansion aspirations.

Are employee background checks legal in India?

Background checks are allowed in India as long as the applicable data protection regulations are obeyed. This pertains to the management, processing, and retention of sensitive personal data that is owned by Indian citizens. The legal distinction between a third party and an employer about who conducts these background checks is nonexistent. However, many businesses opt to outsource these kinds of tasks because they lack the internal people or expertise necessary to conduct these kinds of assessments.

It is advised that you search for an Employer of Record, like EOR Services, when assembling your remote team in India.

Planning to hire in India? Here’s how EOR Services can help

Want to grow your Indian workforce? The EOR Services platform is the all-inclusive payroll and employment solution you need to recruit, oversee, and pay employees worldwide from one central location. EOR Services reduces your risk of fines and legal issues by making it easy for you to comply with all Indian employment requirements. We can also assist you in providing the greatest work environment for your staff and offer legal advice on matters like background checks. Allow us to take care of the hiring and payment processes so you can focus on growing your teams in India and beyond.