Article
3 min read
Author
Michał Kowalewski
Published
April 05, 2024
Last Update
July 10, 2024
Table of Contents
What should employers know before running background checks in Austria?
Are background checks legal in Austria?
What types of background checks are illegal in Austria?
Industries where background checks are common in Austria
Types of employee background checks in Austria
Background check mistakes to avoid in Austria
Step-by-step guide to employee background checks in Austria
Run employee background checks with Deel
While not legally mandated, background checks are valuable for employers seeking to build a trustworthy and qualified workforce in Austria. This practice is particularly common in finance, healthcare, and IT industries, which require a high degree of responsibility and ethical conduct.
Austria boasts a strong and stable economy, ranking 14th globally in GDP per capita (according to World Bank, 2023). The country is also a recognized leader in innovation, with a highly skilled workforce. According to the OECD, Austria ranks 7th in the world for educational attainment, with over 60% of adults holding tertiary education qualifications.
This combination of economic strength and a well-educated population makes Austria attractive for businesses seeking top talent.
In this article, you’ll learn:
An employee background check verifies a potential hire’s work history, education, professional qualifications, and any criminal records they might have. It’s particularly beneficial to run a background check before finalizing an employment offer or signing a contract to ensure the candidate meets the company’s standards and requirements.
Austria’s legal framework, particularly concerning privacy, is guided by the European Union’s General Data Protection Regulation (GDPR) and local laws such as the Datenschutzgesetz (DSG). The Austrian Data Protection Authority (Datenschutzbehörde) plays a crucial role in overseeing compliance.
General Data Protection Regulation (GDPR): This EU regulation establishes the foundation for data privacy protection across Europe. It outlines critical principles like transparency, purpose limitation, and data minimization, which employers conducting background checks in Austria must adhere to
Datenschutzgesetz (DSG): This Austrian national law complements the GDPR. It provides additional details and specific requirements for data processing within Austria, ensuring compliance with the broader European framework and national regulations
Austrian Data Protection Authority (Datenschutzbehörde): Austria’s independent supervisory authority enforces the GDPR and the DSG. They have the power to investigate complaints, issue fines for non-compliance, and offer guidance to organizations on data protection best practices. This ensures that employers conducting background checks are following the rules
Yes, background checks are legal in Austria, but they are subject to specific regulations and restrictions to ensure they are conducted fairly and respect candidates’ privacy rights.
Employers must obtain explicit consent from candidates before conducting background checks, and there is a limited scope of information they can legally access and use for employment decisions. Although not specified in the law, written consent is recommended for documentation and compliance.
Certain background checks are considered illegal or highly restricted in Austria. Global employers looking to hire in Austria should be cautious when checking the following practices:
Violating data privacy laws during employee background checks in Austria can lead to hefty fines under Austria’s national data protection laws and significant penalties under the GDPR. Lesser offenses might attract fines up to €10 million or 2% of global annual turnover, whichever is higher. More severe violations could see penalties up to €20 million or 4% of worldwide revenue.
The Austrian Data Protection Authority rigorously enforces these rules, ensuring strict compliance with GDPR and national privacy regulations. Though specific penalties related to background checks aren’t disclosed, the authority’s active role underscores its dedication to safeguarding personal data.
While Austria hasn’t issued a public case related to background checks, the country’s data protection authority, the Datenschutzbehörde, actively enforces the GDPR and national regulations.
In Austria, specific industries often require thorough background checks due to the nature of their roles and the level of responsibility involved. Here’s a breakdown:
Effective background checks in Austria focus on critical areas that assess a candidate’s qualifications. Understanding these areas allows employers to design screening processes that meet both the specific needs of the job and relevant legal requirements.
Type of Check | Common in Austria? | Reason |
---|---|---|
Criminal record check | Common | Essential for positions of trust or involving vulnerable populations |
Employment history verification | Common | Confirms previous employment and job performance |
Educational verification | Common | Confirms the validity of academic credentials claimed by the candidate |
Credit history check | Less common | Generally used for roles that involve financial responsibilities, subject to consent and relevance. |
Health screening | Less common | Subject to strict legal restrictions; relevant only if it directly pertains to job requirements |
Social media screening | Less common | Used selectively due to privacy concerns and the relevance of the information to job performance |
Whether you’re hiring employees or contractors in Austria, there are a few things you avoid doing as an employer when it comes to background checks:
Background checks are standard across various industries in Austria, especially in the sectors where trust, integrity, and safety are most important.
You can also automate this process using Deel and get a fast employee background check, receiving results within minutes.
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—Bree Cohen,
Vice President of Talent, Power Digital Marketing
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