A guide to employee background checks in Chile

Employee background checks should be an integral part of your hiring process in Chile. Although not mandatory, they are a common practice, especially in finance, healthcare, education, security, law enforcement, and the public sector.

As the third largest economy in South America, and a country with many favorable trade agreements with many countries around the world, and low corruption, Chile can exercise a strong draw on businesses wishing to expand or consolidate their operations in the region. Moreover, the country's high human development and gender development index ranking makes it an attractive destination for a skilled and diverse workforce.

In this dynamic and growing business environment, knowing how to conduct detailed, and legal, background checks on potential employees is crucial for companies wishing to gain a foothold in Chile, especially when it comes to countering fraudulent qualifications and confirming eligibility to live and work in the country.

In this article, you’ll learn:

• How to run an effective and legal employment screening in Chile
• What the common types of employee checks are in Chile
• How to conduct a thorough employee screening, step by step
• What mistakes to avoid when performing a background check in Chile

Essential information for a background check in Chile

While there have been several proposals for a new constitution for the country, that may change the regulatory landscape if passed, background checks in Chile are currently regulated by several laws regarding data protection which set a framework for how personal information can be collected, used, and stored. Policies and regulations are enforced and monitored by several different authorities, while plans for a dedicated data protection authority are currently being worked on.

At the core of compliant background checks in Chile is the obligation to obtain explicit, written, authorization from the data subject, should the data processing operations already not be covered by law.

• The individual's right to data protection is enshrined at the highest level of the Chilean framework, in Art. 19 of the Constitution. On a more practical level, however, the Personal Data Protection Law (PDPL) is one of the most important tools for data regulation in Chile.
• The current lack of a dedicated authority to enforce data protection regulations adds complexity to the picture, as there are multiple potential stakeholders, such as SERNAC, tasked with upholding regulations. Moreover, while many of these do not have the authority to issue fines, they can start legal proceedings should issues be found.
• Even in cases in which background checks are permitted, discrimination based on race, gender, religion, political views, union affiliation, and other protected categories is always strictly prohibited.

Are background checks legal in Chile?

Yes, background checks are legal in Chile, but they are subject to specific regulations and restrictions. Employers must obtain explicit consent from job applicants before conducting any background checks. Moreover, the information collected must be relevant to the job's requirements. Employers are also required to protect the privacy of the information obtained and are restricted from accessing certain personal data without explicit permission.

What types of background checks are illegal in Chile?

While background checks are generally permissible in Chile, certain types of checks are subject to restrictions:

• Conducting any background check without the explicit consent of the job applicant is considered illegal
• Accessing certain sensitive personal information, such as medical records (without consent), political affiliations, or religious beliefs, is restricted
• Hiring based on financial records is also restricted, though some exceptions exist
• Asking for, or obtaining, pregnancy certificates is prohibited in Chile

Employers who violate these regulations may face legal consequences, including fines and reputational damage. The best course of action is to:

• Focus only on checks that are directly relevant to the job's responsibilities
• Obtaining explicit consent for any personal information required during the hiring process
• Ensuring personal data is handled properly and compliantly

Common background check industries

Employee background checks are prevalent across various industries in Chile, particularly in sectors where trust, integrity, and security are paramount.

• Finance and Banking: Financial institutions in Chile focus heavily on regulatory compliance and financial integrity. These are crucial assets for working in Chile's growing and trade-friendly economy. Background checks help identify individuals with a history of ethical conduct, crucial for handling personal financial information and assets, thereby ensuring customer trust and compliance.
• Education: Background checks are a common step in the hiring process for teachers and people involved in the education industry. They serve the purpose of confirming the qualifications of applicants as well as filtering out people who may have a history of misconduct and abuse involving minors.
• Healthcare: As a heavily regulated industry, candidates for job openings in this industry in Chile are often subject to background checks. These help confirm their credentials and their recognition in the country, and can also highlight ethical misgivings or malpractice issues in the candidate's working history.
• Technology: The importance of intellectual property and data security to the tech industry make it a prime candidate for background checks in Chile. Checks on a candidate's employment history can help confirm their skills and specialization, while also confirming there are no issues such as NDA violations or non-compete clauses still in place.

Common Checks and Less Common Checks

Background check mistakes to avoid in Chile

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

• Skipping consent: Always obtain explicit consent before conducting any background checks.
• Irrelevant checks: Avoid conducting checks that are not directly related to the job's requirements.
• Invasion of privacy: Respect the candidate's privacy by not delving into protected personal information.
• Neglecting compliance: Ensure all background check processes comply with Chilean laws and regulations.

Step-by-step guide of employee background checks in Chile

1. Identify relevant checks: Determine which types of background checks are relevant based on the job's requirements.
2. Obtain explicit consent: Before initiating any background check, ensure you have written consent from the candidate.
3. Engage a reputable agency: Consider hiring a professional background check agency familiar with Chilean laws and privacy regulations.
4. Conduct criminal record checks: This can be done through the Chilean Civil Registry and Identification Service with the candidate's consent.
5. Verify educational credentials: Contact educational institutions directly or use verification services to confirm academic qualifications.
6. Verify employment history: Contact previous employers to verify employment history and performance.
7. Check credit score: With consent, obtain a credit report to assess financial responsibility (relevant for financially sensitive positions).
8. Screen social media: Review public social media profiles for any red flags, ensuring not to infringe on privacy rights.
9. Check references: Contact provided references to gather more insights into the candidate's capabilities and character.
10. Run a compliance check: Ensure all collected information is stored and used in compliance with Chilean privacy laws.

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