Employment Background Verification in India

Background checks in India confirm the authenticity of a person's job history, commercial records, financial records, criminal records and other information. Comprehensive background checks ensure you don’t leave things to chance and hire the right people.

According to a study conducted in 2022, banking, healthcare, manufacturing, pharma, and engineering sectors have all reported discrepancies higher than the national average of 8.5%.

Discrepancies of such volumes can significantly impact work environment, hamper productivity and hurt the company's outlook. Running a pre-employment background check on employees will give you valuable insights, benefiting the company in the longer run.

The digitalization of public data in India, such as voter identification cards, driver's licenses and court records, has made it easier to screen candidates. It typically takes 3–10 days to complete the verification process. However, it might take longer if a corporation wants to dig more into the candidate's background (mostly done for senior-level positions). Usually, a corporation conducts these checks once the candidate has cleared all the interview rounds.

Benefits of Background Checks in India

Companies that undertake employee screening in India reap the following benefits:

Better hiring quality

The first thing you'll notice when you implement a comprehensive background verification check is a considerable improvement in the quality of hiring processes. An astute hiring strategy must include background checks to form a team of well-rounded and trustworthy professionals.

Safer workplace

An employment background check helps reduce the likelihood of future workplace conflicts by screening out applicants who may be a threat to the company's ethics and culture. Thorough background checks reveal workplace incidents of the candidate, which could prove a liability to your company.

Enhanced regulatory compliance

Without a background screening policy, you could risk fines and legal trouble. A third-party background verification provider with compliance experts can help your company build an effective screening solution. This will help fulfill industry standards and regulatory requirements, which vary by state and job type. 

Lesser employee turnover

Recruiters need sufficient evidence to entrust professionals with the company's long-term growth. Background checks reveal many facts (previous employer, previous roles, total experience and tenure) about a candidate's employment history, helping you identify the professionals for the company's future progress and stability.

Positive company image

Hiring candidates with numerous red flags might lead to lawsuits and irreparable damage to the company. A background search in India will safeguard you from hiring anybody flagged by various organizations. Consequently, you will be building a dependable team aligned with the company's vision.

Are Background Checks Legal in India?

Yes, employee background screening in India is legal. However, employers must obtain proper consent from the candidate before proceeding with the verification process.

The laws regarding background checks are very complex and vague. Background checks are not very common in Indian companies; hence these procedures are mostly unregulated.

Things to Know When Performing a Background Check in India

The Indian job market is so competitive that more than 10 percent of people lie on their resumes. Hence, it is important to conduct background checks and verify the claims of the candidate before hiring.

There are three things you must know before an employee screening in India:

  • ~The company must be ISO 27001 certified
  • ~The candidate’s consent is mandatory to obtain medical, financial and biometric information
  • ~The Indian law allows you to scan the social media profile of the candidate without their permission

As part of employee background screening in India, companies consider the following data the most important:

Employment history

Other than just the history, background checks reveal the professionalism and dedication of the candidate in their previous roles. It is essential to prove a candidate's work experience and job suitability. When looking for reliable employees, especially for senior roles, verify the candidate's employment history before hiring them. 

Education history

Numerous roles demand a specific skill set and experience. A thorough background verification will reveal if the candidate has completed the courses in the universities they have declared.

Criminal record

A clean criminal background check in India will instill belief that the candidate will uphold the company's ethics. This is highly crucial in leadership positions as the company's reputation is at stake.

Credit report

A decent credit report is significant when interviewing candidates for a finance-based position. A credit report reveals important aspects like  money management, signs of financial distress, records of repayment of loans and much more.

Social life

Background checks on a candidate's social media activity help identify red flags. Social media profiles are also a way to verify if the person has been associated with companies and universities, as mentioned in the resume

Information Essential for a Background Check in India

The following points detail which documents are needed for different background checks:

Types of check Documents required
Previous employment check Current offer letter, last three payslips, experience letter
Education check Final year results, Provisional/Degree certificate(s)
Criminal record Proof of identity (Voter ID card, Passport, Aadhar card)
Credit report PAN card
Social life Links to social media profiles


Process Involved in Background Checks

A typical employment background check in India involves hiring an agency who help with the following:

  1. Cross-reference the data with the candidate's previous office(s) of employment
  2. Look for any mention of the candidate in criminal records
  3. Connect with institutes to verify the candidate's educational background
  4. Verify the address of the candidate, sometimes by sending people to the location

After the entire process is complete, the agency sends its report to the company. The hiring managers then decide on finalizing the candidate.

Industries and Situations That Are Most Suitable For Background Checks in India

Workplaces involving "special care" or "vulnerable" people (for instance, children, specially-abled people)

  • ~Financial services
  • ~Medical care
  • ~Legal advisory and services
  • ~Large-scale manufacturing
  • ~Construction
  • ~Energy & utilities
  • ~Government services
  • ~Educational institutes
  • ~Any profile that requires a special license

A pre-employment background check in India will impact hiring and onboarding on a much larger scale. Verifying candidates' profiles will lead to a reliable and trustworthy job market.

How Multiplier Helps With Background Checks

Building a productive global team means hiring reliable professionals. A hiring process that includes background checks increases the chances of recruiting the right talent for your organization.

Global recruitment is borderless when you use Multiplier to onboard and manage international employees. Our platform helps you manage payroll and adhere to domestic and international regulations while you grow your remote team. To know more about hiring across the globe compliantly and cost-effectively, connect with Multiplier.

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