A background check verifies that a candidate is who they claim to be and hasn’t concealed disqualifying history. In international hiring, the challenge isn’t running the check — it’s knowing what you’re legally allowed to check in each country.
The US is permissive: criminal records, credit checks, drug screening, and social media reviews are standard for many roles. The EU is the opposite. GDPR limits what you can collect, Germany prohibits credit checks for most positions, and France restricts criminal record requests to specific roles. Brazil requires candidate consent for every check and limits criminal history inquiries. Getting this wrong means privacy violations and potential fines — €20 million or 4% of global revenue under GDPR.
Country-specific rules create a patchwork that trips up companies hiring across regions. In India, employment verification is standard but criminal checks require candidate consent and vary by state. In Japan, asking about criminal history during hiring can violate the country’s anti-discrimination norms. Singapore allows criminal record checks but restricts access to official records. The pattern: the more developed a country’s privacy framework, the more constrained your screening options.
Most EOR providers offer background checks as an add-on, typically through partners like Certn, Checkr, or Sterling. Costs run $30–$200 per check depending on the country and depth. The EOR handles local compliance requirements, which is genuinely useful because a US-style background check run on a German candidate would violate German law. If you’re hiring in more than three countries, let your EOR or a specialized vendor manage screening rather than trying to navigate each country’s rules yourself.
The ILO’s Code of Practice on the Protection of Workers’ Personal Data provides the global baseline for what employers should and shouldn’t collect during hiring. Most national privacy laws align with these principles, even where they aren’t legally binding.
Why It Matters for EOR
When you hire through an EOR, the EOR is the legal employer — and in most jurisdictions, the legal employer bears the compliance risk for screening practices. That means if your EOR runs an illegal background check, the EOR is liable, not you. This is a real advantage, but it only works if your EOR actually understands local screening law. Ask specific questions: what checks do you run in Germany? How do you handle right-to-work verification versus background screening? Do you get separate consent for each check type?
Providers like Deel and Remote bundle basic identity and right-to-work verification into onboarding, with deeper checks available for additional fees. If your industry requires enhanced screening — financial services, healthcare, government contracting — confirm that your EOR’s screening partner covers your specific requirements before signing.
For practical use of this concept, see EOR vs PEO explained and remote jobs by country.
Further Reading
- Hiring in the United States: permissive screening rules and FCRA requirements — The US allows extensive background checks but requires FCRA compliance, including candidate consent and adverse action notices.
- Hiring in India: background verification practices and legal limits — India requires candidate consent for every check and has growing privacy regulations around employment screening.
- EOR comparisons
- Read Deel review
- EOR vs PEO explained
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