Article
3 min read
Author
Michał Kowalewski
Published
February 23, 2024
Last Update
June 21, 2024
Table of Contents
Essential information for a background check in India
Are background checks legal in India?
Types of background checks that are illegal in India
Common background check industries in India
Background check mistakes to avoid in India
Step-by-step guide to employee background checks in India
Employee background checks should be an integral part of your hiring process in India. Although not mandatory, they are a common practice, especially in IT, banking, finance, healthcare, education, and government organizations.
India’s IT industry is a cornerstone of its economy, employs over 5.4 million people and contributes to 9.3% of the GDP. This sector, characterized by a mix of global corporates and a rapidly growing digital and tech start-up ecosystem, is a testament to the high caliber of talent available in India.
However, employees looking to take advantage of India’s great talent pool, should be careful and implement thorough background checks to prevent scenarios like those faced by Accenture and Cognizant, where the absence of proper employee screening led to the dismissal of employees with fake credentials.
In this article you’ll learn:
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 India, employee background checks are governed by the Information Technology Act, 2000, and the Personal Data Protection Bill, 2019.
These regulations emphasize the protection of personal data and ensure that background checks are conducted responsibly and ethically. The key organization overseeing data protection and privacy in India is the Data Protection Authority of India (DPAI), which is responsible for enforcing data protection laws and regulations.
Background checks are legal in India, and they are widely conducted by employers as a standard part of the hiring process.
However, it's important for employers to adhere to the regulations outlined in the Information Technology Act and the Personal Data Protection Bill to ensure compliance with the law.
Employers must obtain consent from the individual before conducting background checks and must handle personal data with care and confidentiality. Although it’s not specified in the law, written consent is recommended for documentation and compliance purposes.
India's job market offers exciting opportunities for global tech companies, but running legal background checks requires caution. While verifying qualifications and experience is encouraged, certain practices cross legal and ethical boundaries.
Stay clear of:
Violating data protection laws in India can lead to legal repercussions, including fines and damage to the employer's reputation. Remember that permissible checks exist. Verifying education, employment history, and criminal records through authorized channels remains generally acceptable.
In India, various industries rely on employee background checks to ensure the integrity and reliability of their workforce. Some of the common industries where background checks are prevalent include:
Type of Check | Common in India? | Reason |
---|---|---|
Criminal Record Check | Common | This check is crucial for roles involving security clearances, handling sensitive information, or working with vulnerable populations such as children and the elderly |
Employment History Verification | Common | Important for assessing the candidate's work experience, performance, and integrity |
Educational Qualifications Verification | Common | Ensures the candidate possesses the required education and skills for the role |
Credit History Check | Less Common | Less common than the others and typically conducted for positions that involve financial responsibilities, access to sensitive financial information, or handling of company funds |
Reference Check | Common | Provides insights into the candidate's character and work ethic through past colleagues or supervisors |
Social Media Screening | Common | Increasingly common, this involves reviewing a candidate's public online presence to gather insights into their behavior, character, and professionalism |
Drug and Alcohol Testing | Less Common | Not as common in India as in some other countries, and its legality and practice can vary depending on the industry and the nature of the job |
Whether you’re hiring employees or contractors in India, there are a few things you shouldn’t do as an employer when it comes to background checks:
Employers looking to hire in India should follow the list of steps below to ensure legal and effective and thorough employee background checks.
You can also automate this process using Deel, and get a fast employee background check, with results coming in a matter of minutes.
After exploring various providers, it's clear that Deel is the best on the market. We were able to hire approximately 40 employees in the Philippines within a matter of months. Their background check process was easy and effective and made us feel safe about hiring in new markets. We're truly grateful for the opportunity to work with this team!
—Bree Cohen,
VP of talent
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