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Estonia

Employee Background Checks in Estonia: Comprehensive Guide

Estonia offers an exciting opportunity for trade as it ranks 10th among European countries in Global Innovation Index 2022. Estonia welcomes foreign investors for business with its advanced, lucid tax policies and high economic freedom. Its universal health care and free education policy are lucrative for foreign investors and their families. Estonia’s strategic geographical location allows free-flowing trade by ship and land. 

The World Economic Forum credits Estonia as Europe’s most entrepreneurial country. It is one of the six countries in Europe with the highest investment per capita for startups. The availability of experienced professionals with a broad spectrum of expertise adds more leverage. 

Hiring in a foreign country might seem daunting, but streamlined business processes have made it easier for international employers to fulfill their dream of international expansion. However, before you delve deeper into the immense employment potential Estonia offers, you need to be familiar with the employment screening process in Estonia. 

What is Employment Background Verification?

Background verifications are checks an employer conducts to validate an applicant’s data. Every employer needs to conduct a thorough background check for potential employees. It is a crucial step, especially for international recruits. Employee screening ensures that the employee information is authentic and avoids snags in the system in the future. 

  • The process of employee screening and background checks involves verifying educational qualifications, financial records, criminal records, and often social media presence. Recruiters can verify these details before hiring. 
  • Employee background verification is slightly more complex for international recruits, as they belong to a different socio-political and economic system.
  • Employee screening promotes transparency in the hiring process. A fraudulent employee threatens the business and the company’s reputation. 

Benefits of Background Check in Estonia

Employers must conduct background checks in Estonia to hire the right candidate. The benefits of background checks include the following. 

Divert risky candidates

  • Sometimes, candidates tend to tamper with data to get a job.
  • Conducting a background check reduces the risk of recruiting people with falsified data.

Reduce potential risks

  • Companies are answerable for an employee’s misconduct outside the workplace. 
  • Hiring employees with a criminal record can pose risks for a company. 
  • Conducting a criminal background check allows companies to negate such outcomes. 

Better hiring decisions

  • Employers who conduct a thorough HR background check tend to make better hiring decisions.
  • Since the employer understands the candidate’s personality and accomplishments, building an efficient team with a positive outlook becomes easier. 

‘Andmekaitse Inspektsioon,’ or the Estonian Data Protection Inspectorate, is legally responsible for overseeing and enforcing data privacy. Even though it is legal in Estonia to collect personal data, the Personal Data Protection Act of Estonia allows data collection with consent. Estonia has some strict background check laws regarding personal data collection that organizations must always keep in mind before conducting an employment background check in Estonia. 

  • Personal data collection with consent from the individual concerned
  • Judicious data collection that highlights the collection of necessary data
  • Data is relevant to the purpose of collection
  • Updated and accurate data
  • Employers can replace false data with accurate and updated information.
  • Destroying data once it fulfills its purpose. 

Following these guidelines can help in effective employee screening while hiring in Estonia.

Things to Know When Performing a Background Check in Estonia

A background search in Estonia is a precautionary measure for recruiters that verifies specific information. However, some jobs require more information before concluding. 

Employment history

  • Employment history helps recruiters better understand the employee’s skills, work habits, job roles, etc. 
  • The recruiter can conduct a company background check in Estonia to verify the applicant’s record. 
  • It allows one to identify false data, if any, and validate the candidate’s professional accomplishments. 

Education History

  • An educational background search in Estonia is inevitable. All major academic milestones, course completions, and exam scores are vital information needed before recruiting. 
  • Forging records and educational accomplishments is a common occurrence worldwide. The best approach in this situation is to contact the institute concerned to check the degree’s or certificate’s validity. 

Criminal record

  • Estonian background check law requires a Police Clearance Certificate or a Certificate of Good Conduct verified by the Criminal Records Database in Estonia.
  • Ensuring that an employee poses no threat to the company’s interest is necessary to align the company’s well-being. It includes rigorously verifying a potential employee’s criminal history. 
  • As a recruiter, you must follow the rules while conducting a criminal background check in Estonia. 

Credit report

  • Analyzing a potential employee’s credit report includes their transactions, history of loans, mortgages, student debts, etc.
  • A credit report can be a real-life experience scorecard for candidates applying for roles like asset management. 
  • A person’s credit report acts as a verification of identity. A thorough credit report is essential for employment background screening in Estonia. 

Social life

  • Besides the basic checkpoints and employee background screening, focusing on a candidate’s social presence is a good practice. 
  • HR background checks in Estonia on social life help employers understand an applicant’s personality, thus allowing companies to create better teams.  

Information Essential for a Background Check in Estonia

With the right information, conducting a background search in Estonia becomes smoother. Have a look at the necessary data to ensure a hiccup-free screening process. 

  • Registered name
  • Identity proof includes a passport, driving license, voter card, and birth certificate.
  • Candidate’s contact number and mail id. 
  • Residential address
  • Passport and permit
  • School and college degrees
  • Certificates, diplomas, and internships contribute to proof of educational qualification.

Process Involved in Background Checks in Estonia

Companies must follow a legal framework that considers the employee’s interest. Estonia’s background check follows a comprehensive guideline. However, it may vary across organizations. 

List out the necessary information

  • Isolate the information you want about the candidate and create a background-checking policy that states how the information will affect employment prospects. 

 

  • Getting the applicant’s consent is mandatory before initiating an HR background check while recruiting in Estonia. 
  • Draft a legally compliant write-up that clearly states the intent of the screening process and asks for permission to collect data. 

Collect information

  • Collect information that is relevant to the hiring process only. 
  • An employer can contact the references in the applicant’s resume and request the necessary information. 

Verification

  • It is the most crucial step in the process. Once you have acquired the data, you can verify the data and begin screening.
  • Based on the data, you can make the hiring decision.  

Dispose of data once it fulfills its purpose

  • In Estonia, holding on to personal data once it fulfills its use is a legally punishable offense. 
  • Therefore, one must discard the data after completing the background search in Estonia. 

Industries and Situations That are Most Suitable for Background Checks in Estonia

Some industries may conduct light background checks or focus on specific factors pertinent to the field. However, professions dealing with sensitive information are high-priority regarding background checks. To illustrate, some industries could benefit the most from employee screening while hiring in Estonia. 

  • Finance
  • Healthcare
  • Social work
  • IT
  • Manufacturing

How Multiplier Helps With Background Checks

Background checks can be tedious and time-consuming because of the overwhelming data. Taking help from a third-party PEO/EOR can help you chalk the right plan to conduct an employment background check in Estonia efficiently. 

Multiplier is a versatile solution for background checks in 150+ countries. It is a SaaS-based EOR platform with global ties with background-checking companies that caters to your singular needs as an employer.

Frequently Asked Questions

As a member of the European Union, the GDPR applies to a pre-employment background check in Estonia.

You can get your Police Clearance Certificate or a Certificate of Good Conduct verified by the Criminal Records Database in Estonia. Contacting the concerned facility via mail or post and sending out the filled-up application form is the easiest way to get it.

Yes, background checks are beneficial for companies as it helps them to identify the right candidate. The nature of background checks may vary across organizations, but the intent remains consistent.

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