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Starting a Business In Laos

Background Checks / Employee Screening In Laos

Laos is a peaceful manufacturing country that borders countries like China and Vietnam. The Laotian government has always depended on farming, tourism, and manufacturing industries, the main contributors to GDP. As the availability of education increased, the youth of Laos has been spreading their roots to various in-demand sectors in the world. 

The developing country has garnered the attention of many employers worldwide due to the affordability of hiring and the abundance of skilled talents. Recently, many companies have entered the Lao hiring market. The regulations on employee screening in Laos have made it simpler for these employers to screen qualified applicants. 

The ease of doing a background check in Laos allows every company to decrease financial and legal risks. This guide highlights all the required rules and regulations one needs to abide by while conducting a pre-employment background check in Laos. 

What is an Employment Background Verification?

An employment background check is a process used by employers to verify the information provided by an applicant. Background checks are done to verify details such as employment history, education history, credit reports, criminal records, or any other record that might be relevant to a listed position. 

An employer looking to hire Laotians can perform background checks in Laos. To conduct a background check, one must be aware of Laos’s labor laws and data protection laws. While labor laws do not directly regulate background checks, data protection laws dominate background checks.

Benefits of Background Checks in Laos

Background checks are considered necessary for every company that hires employees. The benefits of conducting a pre-employment background check in Laos are listed below.

  • Overcome false information
    • Falsification of information in CVs has grown quite frequent. Candidates sometimes forge documents and employer records to improve their selection chances. 
    • Verifying the information with the concerned organizations allows a company to remove such discrepancies.
  • Reduce liabilities
    • Employers are often held responsible for their employees’ actions. 
    • Conducting a background check in Laos allows an employer to negate future liabilities and financial risks.
  • Improving the work culture
    • Background checks help employers identify the type of personality they bring into their workforce. 
    • Conducting a criminal background check in Laos helps companies eliminate the chances of hiring unsuitable candidates.  

Background checks are legal in Laos. Any employer with a registered company or partnered with a global EOR solution can perform background checks on prospective applicants. 

The labor laws in Laos do not prohibit or regulate an employer from obtaining job-related information from the candidate.  An employer should always have the applicant’s written consent before performing a background check in Laos. 

Electronic data in Laos is protected by the Data Protection Law 2017. Information is passed on digitally, so an employer is prohibited from sharing an applicant’s lead with another country. While sharing information with other companies is not permitted, an employer can forward the necessary information to their partner company only if it is required. 

Things to Know When Performing a Background Check in Laos

The must-have details an employer should look into while conducting a background check in Laos are listed below.

  • Employment history
    • Experienced applicants in Laos tend to share their employment history for a listed position. 
    • While most employment records are valid, it is always advisable to conduct a company background check in Laos and cross-verify the information with their previous employer. 
    • A company background check in Laos allows an employer to determine the validity of these records. At the same time, identifying an applicant’s work ethic will add to the workforce, either positively or negatively. 
  • Education history
    • There is no doubt that education qualification is used to screen employees worldwide, and Laos is no exception. 
    • Education in Laos is free until a certain age, but specialized education costs are comparably high. 
    • Therefore, every company must verify the information with the named educational institutions. 
  • Criminal records
    • Criminal records are very crucial for applicant background checks. 
    • There is no specific set of rules that prohibit an employer from checking an applicant’s criminal record. Therefore, any company can enquire with the national police department in Laos to ensure that an applicant has no criminal history. 
  • Driving records
    • Driving records are especially important for job listings requiring the applicant to drive. Preferably, someone looking to hire a Laotian for heavy-duty driving or anything that lists driving as a deliverable should obtain their driving records. 
  • Credit report
    • Background checks on credit history are very beneficial for a cash management position. Credit history in Laos reflects a person’s efficacy in financial matters. 
  • Social life
    • Internal work culture has a cumulative effect on a company’s growth. It is not advisable to hire an employee that might have a detrimental impact on the said culture. 
    • Laotians are known for their outgoing, warm personalities. However, one should consider researching an applicant’s social life to be safer.

Information Essential for a Background Check in Laos

Although the Laotian government enforces no such background check laws, employers must abide by Law on Resistance and Prevention of Cybercrime. Essentially, this law comes into play when a company is looking to conduct a pre-employment background check in Laos that concerns the use of data.

As digital information is considered the preferred mode of sharing information, an employer must acquire written consent from the applicant to conduct specific background checks. The use and verification of criminal records, medical history, identity proofs, medical records, or any other form of data acquired in a digital format must abide by the mentioned law. 

Most resumes provide all the essential information required to conduct a background check in Laos. However, an employer has the right to ask an applicant for the submission of the mentioned documents if missing from their resumes. 

  • Government-accredited documents where their date of birth and full name is mentioned 
  • Any legal document that proves their residency in Laos and their permanent address in the said country
  • All the relevant scorecards and report sheets of their previous educational endeavors 
  • A valid passport for jobs that require its employee to travel 
  • Offer letters, resignation letters, and payslips from all the previous employers listed in the resume 
  • Police verification certificate 

Process Involved in Background Checks 

There is no specific framework or process one needs to follow while conducting background checks in Laos. However, a few steps have been provided below to get you started. 

Step 1: Collect and request the necessary information

  • A candidate’s resume usually includes all the information required to perform background checks. However, certain job listings might require specific checks. In such cases, the employer can request the data from the applicant. Some essential and commonly occurring details are as follows
    • Employment history
    • Educational records
  • Certain records, such as criminal records, driving records, medical history, and social media records, are not included. An employer can request such information.

Step 2: Background check

  • Before conducting a background check in Laos, employers must get written consent from the employees. 
  • As per the information acquired,  an employer can reach out to the mentioned organizations in Laos. It is the first step to ensure the validity of the provided information, and an employer can always expect a positive response. 
  • To get a police verification, a company must enquire about the Laotian police force. An employer can contact them through mail or direct phone calls. The process usually takes a week or two. 

Step 3: Maintaining the record

  • Once a background check is completed, and the applicant is selected, the brand and its employee can maintain this data for future reference. 

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

The general rule for background checks suggests cross-verifying the information the applicant provides. In every case, educational and employment backgrounds come into play. Every company must perform this background check in Laos, irrespective of their industry. 

There are a few industries where an employer might require more than just the mentioned records. 

  • In the case of teaching or any other job where childcare is involved, an employer conducts a criminal background check in Laos, if any, and even cross-checks the applicant’s medical records. 
  • An employer should follow up on recruitment for employees in the financial sector by checking the applicant’s credit history. 
  • An employer can request the driving records of a person appearing for a driving job. 

Some job listings mentioned previously require additional checks except for education and employment history. However, conducting a comprehensive pre-employment background check in Laos is always suggested. It allows an employer to get an overall idea of the personality that might as well be a future employee. 

How Does Multiplier Help With Background Checks?

Even though labor laws do not restrict background checks in Laos, data protection laws require compliance and time. The main goal of this learning curve is to eliminate every risk a company might face while hiring globally.

You can contact global platforms like Multiplier. It is a SaaS-based EOR platform that focuses on eliminating risks a company might face.  Alongside this, Multiplier helps one to comply with local laws eliminating all global employment risks.

Frequently Asked Questions

A general cross-verification of the information provided in the CV is suggested. It includes educational background and employment history. For certain jobs like driving or teaching where a specific type of personality is required, one can examine driving records or conduct a criminal background check in Laos.

A clearance certificate from the police in Laos usually takes around two weeks, and the rest depends on the information required to do the background check. On average, completing a comprehensive background check in Laos takes a month.

You can request and check an applicant’s medical record in Laos.

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