Employee background checks should be an integral part of your hiring process in Croatia. Although not mandatory, they are a common practice, particularly in sectors such as finance, healthcare, education, government, public sector, security, and law enforcement.

Croatia's rapidly developing tech industry, growing at 4x the rate of its overall economy, makes it an attractive hub for hiring, especially in IT. The country offers a skilled workforce with strong STEM education, competitive costs, and robust EU-aligned legal and tax policies. 

When hiring in Croatia, it's important to be mindful of local employment laws, especially regarding background checks, which are mostly prohibited unless candidates give their consent. 

In this article you’ll learn:

• How to run an effective and legal employment screening in Croatia
• Common types of employee checks in Croatia
• Step-by-step process of a thorough employee screening
• Mistakes to avoid when performing a background check in Croatia
• Essential information for a background check in Croatia

What employers need to know before running background checks in Croatia

An employee background check is the process of verifying a potential hire’s work history, education, professional qualifications, and any criminal records they might have. It’s particularly beneficial to run before finalizing an employment offer or signing a contract, ensuring the candidate meets the company's standards and requirements.

In Croatia, employee background checks must comply with the Law on Personal Data Protection, which is aligned with the General Data Protection Regulation (GDPR). The Croatian Data Protection Agency (AZOP) plays a key role in overseeing compliance.

• GDPR: Emphasizes the protection of personal data in the European Union, impacting how employee background checks are conducted by requiring lawful, fair, and transparent data processing. Organizations must ensure they have a legitimate basis for such checks, often necessitating explicit consent from the individual.
• Croatian Data Protection Agency (AZOP): This body oversees the enforcement of data protection laws in Croatia, ensuring organizations adhere to these regulations during employee background checks and other data processing activities. The agency's responsibilities include monitoring compliance, providing guidance to organizations, and addressing individuals' complaints regarding data protection violations.

Are background checks legal in Croatia?

Yes, background checks are legal in Croatia, provided that they comply with the GDPR and other relevant data protection laws. Recruiters must obtain the candidate's consent before conducting a background check, and the processing of personal data must be justified by a legitimate purpose, such as assessing the candidate's suitability for employment. Although it’s not specified in the law, written consent is recommended for documentation and compliance purposes.

What types of background checks are illegal in Croatia?

In Croatia, background checks that involve the indiscriminate collection of personal data or infringe upon an individual's privacy rights are considered illegal.

Stay clear of:

• Non-consensual verifications: Conducting any background check, such as a credit check, without the candidate's explicit consent is prohibited. Additionally, obtaining information about a candidate's religious beliefs, political opinions, or other protected characteristics without consent is illegal.
• Unlawful practices: Recruiters must refrain from using deceptive or unfair methods to obtain information during a background check. Such practices violate the principles of fairness and transparency under Croatian data protection laws.
• Social media checks:. While reviewing publicly available information about a candidate on social media platforms is not forbidden, recruiters must ensure the information is relevant to the job requirements. Using social media to gather information about a candidate's protected characteristics, such as race, ethnic origin, or sexual orientation, is prohibited and can lead to legal consequences.

Violating data privacy laws during employee background checks in Croatia can lead to significant legal repercussions due to strict adherence to local data protection regulations.

Specifically, under Croatian data protection laws aligned with GDPR, fines for infringements can be severe:

• Less severe violations can result in fines up to €10 million or 2% of the firm's global annual revenue from the previous fiscal year, whichever is higher.
• More serious infringements can attract fines of up to €20 million or 4% of the firm's worldwide annual revenue from the preceding financial year, again whichever is higher.

Common background check industries in Croatia

In Croatia, background checks are especially prevalent in industries where trust and security are paramount. These include:

• Finance and banking: Given the sensitivity of financial transactions and the need to safeguard against fraud and embezzlement, background checks in the finance and banking sector are essential. Employers need to ensure that candidates have a clean financial record and can be trusted with handling sensitive financial information.
• Education: To ensure the safety of students, educational institutions conduct thorough background checks on potential employees. This is particularly important for positions involving direct interaction with children and young adults. Verification of credentials, criminal record checks, and reference checks help in maintaining a safe and secure learning environment.
• Healthcare: Due to the confidential nature of medical information and the need to ensure patient safety, background checks are a standard practice in the healthcare industry. These checks help verify the qualifications, professional conduct, and ethical standards of healthcare professionals. Ensuring that employees have no history of malpractice or criminal behavior is crucial for maintaining high standards of care.
• Information technology: Given the access to sensitive data and the potential risks associated with data breaches, the IT sector relies heavily on background checks. Employers need to verify the technical qualifications, work history, and integrity of candidates to protect against unauthorized access to confidential information and ensure cybersecurity.

Types of background checks in Croatia

Effective employment screening in Croatia covers essential aspects to evaluate a candidate's abilities. Knowing these areas helps employers tailor screening processes to meet job requirements and legal standards.

Background check mistakes to avoid in Croatia

Whether you’re hiring employees or contractors in Croatia, there are a few things you shouldn’t do as an employer when it comes to background checks:

Failure to obtain consent: Not obtaining explicit candidate consent before a background check can lead to non-compliance and legal issues

Overreliance on social media: Overemphasizing information from social media without considering its relevance to the job or potential privacy violations

Discriminatory practices: Using background checks to gather information about protected characteristics, such as age or race, can lead to discrimination allegations

Lack of transparency: Failing to inform candidates about the purpose and scope of the background check, violating transparency principles

Inaccurate information: Using unverified or outdated sources for background check information can lead to poor hiring decisions

Retention of excessive data: Collecting and retaining more personal data than necessary contravenes the data minimization principle

Non-compliance with data protection laws: Ignoring GDPR and other data protection regulations can result in significant fines and legal consequences

Step-by-step guide to employee background checks in Croatia

Employers hiring in Croatia should follow these steps to ensure legal and effective background checks:

1. Obtain candidate consent: Secure explicit consent from the candidate before initiating a background check and inform them about its purpose and scope

2. Define the scope of the check: Clearly outline the specific information to be gathered during the background check, ensuring relevance to the job position

3. Data collection: Collect only the necessary data required for the background check, adhering to data minimization and purpose limitation principles

4. Verification of credentials: Verify the candidate's educational qualifications, professional certifications, and previous employment history through reputable sources

5. Criminal record check: Conduct a criminal record check in compliance with GDPR and Croatian labor laws, ensuring sensitive personal data processing is justified

6. Reference checks: Contact previous employers or professional references to verify the candidate's work experience and performance

7. Financial history check: With the candidate's consent, conduct a financial history check to assess financial responsibility, especially for finance-related positions

8. Social media screening: Review publicly available information on social media with caution, ensuring relevance to the job and respecting privacy rights

9. Document the process: Maintain records of the background check process, including candidate consent, gathered information, and data processing justification

10. Decision making: Use the information from the background check to make informed hiring decisions, ensuring fairness, transparency, and compliance with data protection laws

You can also automate this process using Deel, and get a fast employee background check, with results coming in a matter of minutes.

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