Comprehensive Guide to Employee Background Checks in Nepal

Nepal, a landlocked country in the heart of the Himalayas, has a unique and diverse economy driven by various sectors. Nepal’s economy presents a rich tapestry of opportunities and challenges from agriculture to tourism, remittances to hydroelectricity. With a growing population and increasing globalization, Nepal strives to harness its economic growth and development potential. 

The economy of Nepal has been primarily dependent on agriculture. However, with the inflow of foreign corporate establishments and technology, the country’s educated youth is moving towards the service and corporate industry.

Companies from all over the globe are seeking to set up businesses in Nepal, and it has positively affected their economy. However, with increased job opportunities, a considerable hike in job applicants has been noticed. Thus, all companies have started to screen employees extensively in Nepal. 

Screening and background checks on employees have led to data leaks and privacy issues in many different instances globally. To prevent the same, the Government of Nepal has set up specific labor laws to regulate how companies can conduct pre-employment background checks in Nepal. Read on to learn more about the rules and regulations regarding employee background checks in Nepal.

What Is Employment Background Verification?

Employment background verification refers to the process through which the management of an organization verifies the information provided via a job application. Employers conduct background verification to ensure that the information they receive is accurate and that they are hiring the right person for the right job in their organization. 

Based on the role the employee is about to play in the organization, employees are urged to provide information on their educational qualifications, previous work experience, employment history, personal references, criminal records, and other activities. The process of employee background checks in Nepal enables employers to come across trustworthy employees and make informed decisions.

Benefits of Background Checks in Nepal

The HR background check in Nepal provides a wide array of benefits, and they are as follows –

• Ensuring the selection of deserving candidates – The employers can use the information to match the candidate’s competency with the job role. This gives the employers a clear picture of the applicant’s skills and abilities. Thus, the most eligible candidate gets selected for the job.
• Hiring trustworthy employees – Due to high competition, many candidates resort to data tampering to enhance their chances of getting selected. Getting a background check done gets rid of fake candidates. This ensures the selection of trustworthy candidates.
• Mitigating the possibility of fraudulent behavior – Hiring candidates with a clean record enables employers to avoid fraudulent activity in the company. Background checks in Nepal, thus, create a secure workplace with employees who align with the company’s values and goals. 
• Avoiding disrepute – Trustworthy and skilled employees add to the name and reputation of the company. Pre-employment background checks in Nepal enable companies to avoid hazardous complexities that could have erupted otherwise.

Are Background Checks Legal in Nepal?

In Nepal, the employee is responsible for providing the correct information the employer seeks. The employer is allowed to conduct background checks in Nepal on the information provided by the employee. 

Employers acquire a personalized background check authentication form from aspiring job applicants to conduct a background check in Nepal. The labor laws in Nepal allow employers to conduct a background check only when the employees have given prior written consent.

However, the employees are only entitled to provide certain private information if they are relevant to the work role. These include marital status, religious beliefs, political inclinations, and medical reports. In any case, companies can only assess such information with the candidate’s consent.

Things to Know When Performing a Background Check in Nepal

Hiring employees in a developing country like Nepal, with numerous attractive benefits, can be an excellent opportunity for a company’s growth. However, abiding by all the essential procedures to conduct a background check in Nepal can provide excellent leverage to the company. 

The various details that an employer In Nepal can verify are as follows –

• Educational Qualification – Records of the educational qualifications and academic achievements of the candidate are provided in the form of certificates, diplomas, degrees, transcripts, etc., 
• Employment History – Employment history is essential to a productive work environment. The validity of the employment certificates provided by the employees is checked. The previous employer is contacted for further scrutinization.
• Work Experience – Work experience refers to the years the employee has worked and the skills acquired in the process. Most employers prefer to hire employees with a few years of work experience.
• Criminal Record – The candidate must provide a certificate from a local or District (nearest) police station in Nepal verifying the absence of any significant criminal record. Employers can further contact the authorities for verification of the certificate.
• Credit Record – Credit reports show the entire financial history of the employee. Employers are only permitted to seek applicants’ credit reports with the employees’ consent while running background checks in Nepal.
• Social Media record – Today, employers also check employees’ social media accounts and gather the information available online. The employers are, however, only allowed to seek information online with the employee’s consent. Also, the employer can only collect the information posted for a public audience.
• Fitness Certificate – Employers can seek and verify an employee’s physical and psychological fitness. However, they can only ask for medical records if it is relevant to the job role.
• References – Reference checks allow employers to understand the character and credibility of the employee. This authenticates the employee’s background and helps to hire potential employees.

Information Essential for a Background Check in Nepal

Employers should administer background check procedures in accordance with the country’s laws and regulations. While conducting a pre-employment background check in Nepal, employers must ensure they can access specific data with the applicant’s consent. This includes – 

• Full name, address, and other necessary personal details
• Educational history:

1. 1. Details of degree
   2. Certificates 
   3. Year of certification
   4. Contact information of educational institution for verification 

• Employment history:

1. 1. The number of years of work experience
   2. Companies worked in 
   3. Roles 
   4. Resignation letters and the reason for resignation 
   5. Letters of recommendation, if any 
   6. Contact information of previous companies worked in

Process Involved in Background Checks in Nepal

The process of employee background screening in Nepal is conducted broadly on two categories of employees. The first category is domestic employees (citizens of Nepal), and the second is foreign employees (employees who have migrated to Nepal for work). 

The employee background screening in Nepal can be conducted personally by the organization or through a partner agency. The specific steps that employers must follow to ensure a quick and thorough screening process of the employees are discussed as follows –

• Acquire consent of the employees – Employers should collect the applicants’ consent without fail before initiating an HR background check in Nepal. In case consent is not taken, the employer will be directly responsible for any mishandling or leak of information of the applicant.
• Abide by the country’s labor laws – Each country has its law providing and checking rights to the employers and employees. Any organization doing international business must remember to abide by the laws of the land and international norms in its policies. 
• Contact the references – Reach out to references offered by the candidate and speak with the concerned authorities to confirm the authenticity of the candidate’s skills.
• Verify collected data – Verify and authenticate the collected data about the employee from various sources such as educational institutions, medical houses, police stations, etc. Employers may store this verified data for future reference.
• Review information – Review the collected data and check the candidate’s competency to perform the specific job in the organization. If the employee is not chosen for the role based on background checks in Nepal, let them know why you did not choose them.

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

Each industry and job type may have different standards for conducting background checks. Industries such as childcare, healthcare, hospitality, and financial institutions may need to conduct educational and criminal background checks in Nepal due to the prevalence of fraudulent practices. Banks and other corporate agencies might consider credit and social security verification paramount. In contrast, organizations having a government contract opt for a comprehensive background screening in Nepal.

Though employers can conduct background checks anytime after the application and consent forms have been received, employee background screening in Nepal is generally conducted as the final step of the hiring process. It can also be conducted during employment whenever necessary. 

How Multiplier Helps With Background Checks

Multiplier helps  various multinational companies with employee screening procedures and provides a safe and efficient way to hire skilled local employees. We are a SaaS-based Employer of Record (EOR) platform and a trusted partner to numerous background-checking agencies worldwide. Although Multiplier does not directly conduct employee screening services, our global network of trusted partners can perform background checks in accordance with local laws.

With specialized expertise in onboarding, employee management, and wage handling services in Nepal, Multiplier is well-prepared to assist startups and enterprises in their global expansion endeavors. Through our services, companies can streamline their HR processes, ensure compliance with local regulations, and enhance the efficiency of their international expansion journey.