Article
3
A Guide to Employee Background Checks in Lithuania
Employee background checks
Author
Michał Kowalewski
Published
August 19, 2024
Last Update
August 19, 2024
Table of Contents
Key takeaways
- Background checks are legal in Lithuania but must comply with GDPR and other local data protection laws. Explicit consent from candidates is mandatory.
- Key mistakes to avoid include neglecting to obtain consent, conducting irrelevant checks, non-compliance with GDPR, lack of transparency, and relying on inaccurate information.
- Common background checks include criminal record checks, employment verification, education verification, and reference checks. Social media screening is also increasingly common.
Employee background checks should be an integral part of your hiring process in Lithuania. Although not mandatory, they are a common practice, especially in finance, healthcare, IT, cybersecurity, education, and education.
Lithuania's rapidly developing economy and strong educational system make it an attractive hub for hiring, particularly in the IT and technology sectors. The country offers a pool of highly skilled talent, with over 70,000 ICT specialists as of 2023 and an average annual growth rate of 13% in the IT talent pool.
When hiring in Lithuania, it’s crucial to be aware of local employment laws, particularly concerning background checks. These checks are legal but must comply with GDPR and other data protection regulations, requiring explicit consent from candidates.
In this article you’ll learn:
- How to run an effective and legal employment screening in Lithuania
- What are the common types of employee checks in Lithuania
- Step-by-step process of a thorough employee screening
- What mistakes to avoid when performing a background check in Lithuania
Essential information for a background check in Lithuania
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 Lithuania, employee background checks are governed by the General Data Protection Regulation (GDPR) and the State Data Protection Inspectorate (SDPI).
- GDPR: This regulation emphasizes the protection of personal data within the European Union, significantly impacting how employee background checks are conducted. Organizations must ensure lawful, fair, and transparent data processing. A legitimate basis for these checks is required, often involving explicit consent from the individual.
- SDPI: The State Data Protection Inspectorate plays a pivotal role in overseeing the enforcement of GDPR in Lithuania. It ensures that organizations adhere to data protection and privacy laws during employee background checks and other data processing activities. SDPI's responsibilities include monitoring compliance, providing guidance to organizations, and addressing individuals' complaints regarding data protection violations.
Unique cultural and legal considerations in Lithuania include a strong emphasis on privacy rights and data protection. Lithuanian culture highly values personal privacy, and individuals are cautious about the collection and use of their personal information. Recruiters conducting background checks in Lithuania must respect these cultural values and comply with stringent data protection regulations.
Background checks
Are background checks legal in Lithuania?
Yes, background checks are legal in Lithuania, provided they comply with the GDPR and other relevant data protection regulations.
Recruiters must obtain explicit consent from candidates before conducting background checks. The processing of personal data must have a legitimate purpose, such as evaluating the candidate's suitability for the job. Although not legally mandated, obtaining written consent is recommended to ensure proper documentation and compliance.
Specific regulations and restrictions related to background checks in Lithuania include limitations on the types of information that can be collected and the retention period for this data. Recruiters should adhere to the data minimization principle, which mandates that only essential data be processed for the intended purpose. Additionally, sensitive personal data, such as details about criminal convictions, can only be processed under strict conditions outlined in the GDPR and Lithuanian labor laws.
What types of background checks are illegal in Lithuania?
In Lithuania, background checks that involve indiscriminate collection of personal data or infringe upon an individual's privacy rights are illegal. Employers need to avoid the following practices:
- Non-consensual verifications: Conducting any type of background check, such as credit checks, without the candidate's explicit consent is prohibited. Similarly, obtaining information about a candidate’s religious beliefs, political opinions, or other sensitive personal data without consent is also illegal.
- Unlawful practices: Using deceptive or unfair methods to obtain information during a background check is against the law. Employers must ensure that all background checks are conducted in a lawful, fair, and transparent manner in compliance with GDPR requirements.
- Social media checks: While it is not forbidden to review publicly available information on social media, employers must exercise caution. The information obtained must be relevant to the job and not infringe on privacy. Gathering information about a candidate’s protected characteristics (e.g., race, ethnic origin, sexual orientation) through social media is prohibited and can lead to legal consequences.
Violating data privacy laws during employee background checks in Lithuania can lead to significant legal repercussions due to strict adherence to the GDPR and local data protection regulations.
Specifically, the GDPR outlines a two-tier fine system for infringements. 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, whichever is higher.
For instance, Lithuania's data protection authority, the State Data Protection Inspectorate (SDPI), has imposed substantial fines for non-compliance. In 2019, MisterTango, a payment service provider, was fined €61,500 for several GDPR violations, including improper data processing, failure to report a data breach, and excessive data retention.
Common background check industries in Lithuania
In Lithuania, 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:
- Financial Services: Due to the nature of handling sensitive financial information, the financial services industry conducts thorough background checks to assess the integrity and trustworthiness of potential employees
- Healthcare: Given the access to patient records and sensitive health data, the healthcare industry requires comprehensive background checks to ensure the safety and reliability of healthcare professionals
- Information Technology (IT) and Cybersecurity: Because employees in IT and cybersecurity have access to critical systems and data, background checks are essential to prevent data breaches and other cybersecurity threats, ensuring the trustworthiness and technical competence of the staff
- Education: To ensure the safety and well-being of students, the education sector conducts background checks on teachers and staff members to verify their qualifications and ensure they have a clean criminal record
Types of background checks in Lithuania
Effective employment screening in Lithuania covers essential aspects to evaluate a candidate's abilities. Knowing these areas helps employers tailor screening processes to meet job requirements and legal standards.
Type of Check | Common in Lithuania | Reason |
---|---|---|
Criminal record check | Very common | Ensures candidates do not have a history of criminal activity, which is crucial for maintaining public and workplace safety |
Employment verification | Common | Important for verifying past employment details to ensure candidates have the necessary experience and have been honest about their work history |
Education verification | Common | Confirms the legitimacy of academic credentials to ensure that candidates have the required qualifications for the position |
Credit history check | Less common | Used primarily in financial sectors to evaluate the candidate's financial responsibility and trustworthiness |
Reference check | Very common | Provides insights from previous employers or colleagues about the candidate’s reliability, performance, and interpersonal skills |
Social media screening | Increasingly common | Used to gain additional insights into the candidate's public behavior and professionalism, becoming more prevalent in recent years |
Background check mistakes to avoid in Lithuania
Whether you’re hiring employees or contractors in Lithuania, there are a few things you shouldn’t do as an employer when it comes to background checks:
- Neglecting to obtain consent: Always secure explicit consent from the candidate before starting any background check process. Failing to do so can lead to non-compliance with data protection laws and possible legal issues.
- Conducting irrelevant checks: Ensure that the background checks you conduct are pertinent to the job role. Overstepping this boundary can be viewed as an invasion of privacy and may breach local regulations.
- Non-compliance with GDPR: It is crucial to comply with the General Data Protection Regulation (GDPR) and local data protection laws. Ignoring these regulations can result in hefty fines and legal consequences.
- Lack of transparency: Be clear with candidates about what checks are being conducted and why. Failing to inform them about the purpose and scope of the background check violates principles of transparency and fairness.
- Relying on inaccurate information: Ensure that all sources of background check information are verified and current. Using unverified or outdated information can lead to incorrect hiring decisions and potential legal problems.
Step-by-step guide of employee background checks in Lithuania
Employers looking to hire in Lithuania should follow the list of steps below to ensure legal and effective and thorough employee background checks.
-
Obtain consent: The first step is always to secure written consent from the candidate
-
Identify relevant checks: Determine which types of checks are necessary based on the job's requirements
-
Check employment history: Contact previous employers to confirm positions held, responsibilities, and duration of employment
-
Verify educational credentials: Validate the candidate's academic qualifications from relevant institutions
-
Check criminal record: Conducted through the Lithuanian Criminal Records Bureau, requiring candidate consent
-
Checks references: Contact provided references to gain insights into the candidate's abilities and character
-
Check credit history: Can be relevant for positions involving financial responsibilities. Consent and relevance are key
-
Screen social media: A growing area, focusing on publicly available information
-
Document the process: Ensure that all collected personal data is securely stored and protected from unauthorized access or disclosure, and compliant with the GDPR
-
Inform the candidate: Once the background check is complete, communicate the findings to the candidate and allow them to address any discrepancies or provide context for the information obtained
I have been using deel since 2019. The Deel platform makes hiring international employees and contractors easy. I am glad that they collect the relevant information for fulfilling tax compliance.
—Myoung Kang,
CFO at Mother Duck
Run employee background checks with Deel
There’s no need for HR to log into yet another platform or manually chase documents. With screenings in over 200 countries and territories (and counting), you can manage background checks for global employees and contractors with a single source of truth without leaving the Deel platform.
Start running fast background checks with Deel—request a demo today.
About the author
Michał Kowalewski a writer and content manager with 7+ years of experience in digital marketing. He spent most of his professional career working in startups and tech industry. He's a big proponent of remote work considering it not just a professional preference but a lifestyle that enhances productivity and fosters a flexible work environment. He enjoys tackling topics of venture capital, equity, and startup finance.