Guide to Employee Background Checks in Germany

Employee background checks should be an integral part of your hiring process in Germany. Although not mandatory, they are a common practice, especially in finance, healthcare, education, and government organizations.

Germany has been one of the European economic powerhouses for decades, and as the largest economy in the EU, it comes as no surprise that foreign businesses and skilled workers consider the country to be one of the top destinations to invest in or relocate to.

With a well-established manufacturing industry that spans from automotive to high-precision components, Germany's recent investments in renewable energy production, and a focus on sustainable growth, make it a diverse economy that offers opportunities in a variety of fields.

Employee background checks in Germany are a crucial tool to ensure companies can hire the most qualified talent while also ensuring potential candidates have the legal right to live and work in the country. However, these checks must be conducted in compliance with German regulations, which have a strong focus on privacy and data protection.

In this article, you’ll learn:

• How to run an effective and legal employment screening in Germany
• What the common types of employee checks are in Germany
• How to conduct a thorough employee screening, step-by-step
• What mistakes to avoid when performing a background check in Germany

Essential information for a background check in Germany

Germany’s stringent privacy laws, particularly the General Data Protection Regulation (GDPR), play a crucial role in shaping the landscape of employee background checks. The Bundesdatenschutzgesetz (BDSG) complements GDPR, offering specific guidelines relevant to employment. Employers must navigate these regulations carefully, balancing the need for information with respect for privacy.

• While the European GDPR sets the general legal framework around data protection, German regulators have been heavily involved in integrating and supplementing these provisions with legislation that is specific to Germany.
• The BfDI is the German Federal Authority tasked with upholding privacy and data protection rights in Germany. Their responsibilities range from education and information on data protection topics to the enforcement of rules and mandates.
• Germany's culture and society strongly value privacy and individual rights. As a consequence, the legal handling of sensitive data is a serious matter that should not be underestimated.

Are background checks legal in Germany?

Yes, background checks are legal in Germany, but they are subject to strict regulations. Employers must have a legitimate interest in the information they seek and are generally restricted to data relevant to the job in question. Transparency with the candidate about the nature and scope of the checks is a legal necessity. This section emphasizes the importance of adhering to GDPR and BDSG guidelines to ensure compliance and avoid potential legal pitfalls.

What types of background checks are illegal in Germany?

Certain types of background checks are either restricted or outright illegal in Germany. For instance:

• Checking an applicant's credit history is generally considered invasive unless the position involves financial responsibilities
• Accessing health records or conducting social media checks without consent can lead to legal consequences.
• Any form of discrimination based on protected categories such as age, gender, ethnicity, and religious beliefs, that may emerge from a background check, is always illegal.

Common background check industries in Germany

In Germany, various industries rely on employee background checks to ensure the integrity and reliability of their workforce. Some of the common industries where background checks are prevalent include:

• Finance and banking: Germany's financial sector, known for its rigorous standards, relies heavily on background checks. These checks are crucial for preventing fraud, ensuring the secure management of financial transactions, and protecting sensitive customer data, thereby maintaining the stability and trustworthiness of financial institutions.
• Healthcare and education: In Germany, the healthcare and education sectors involve significant responsibility, particularly when working with children, the elderly, and vulnerable populations. Background checks are essential to ensure that professionals meet the required qualifications and have no legal history that could jeopardize the safety and well-being of those in their care.
• Automotive and manufacturing: As a global leader in the automotive and manufacturing industries, Germany requires thorough background checks in these sectors. These checks verify that candidates possess the necessary technical expertise, certifications, and a clean legal record, ensuring the continued excellence and safety standards that define German engineering.
• Information technology and cybersecurity: With Germany's strong emphasis on digital innovation and data protection, background checks are vital in the IT and cybersecurity sectors. These checks help ensure that individuals entrusted with sensitive data and critical infrastructure are trustworthy and capable.
• Logistics and transportation: Germany's position as a central logistics hub in Europe means that background checks are important in the transportation and logistics sectors. These checks help verify that employees are qualified and reliable, ensuring the safe and efficient movement of goods across the country and beyond, which is crucial for the economy.

Types of background checks in Germany

Effective employment screening in Germany covers essential aspects to evaluate a candidate's abilities. Knowing these areas helps employers tailor screening processes to meet job requirements and legal standards.

Background check mistakes to avoid in Germany

Whether you’re hiring employees or contractors in Germany, there are a few things you shouldn’t do as an employer when it comes to background checks:

• Ignoring consent: Failing to obtain written consent is a legal misstep.
• Overstepping bounds: Conducting checks that are not relevant to the job.
• Neglecting GDPR: Underestimating the importance of data protection laws.
• Lack of transparency: Failing to inform the candidate about the nature of the checks.

Step-by-step guide of employee background checks in Germany

Employers looking to hire in Germany should follow the list of steps below to ensure legal effective and thorough employee background checks.

1. Obtain written consent: Before starting any background check, secure explicit, written consent from the candidate.
2. Define the scope: Clearly outline the information sought and its relevance to the job.
3. Notify the candidate: Inform the candidate about the specific checks being conducted.
4. Conduct professional reference checks: Verify the candidate's employment history and qualifications with previous employers, respecting privacy and confidentiality.
5. Educational verification: Confirm academic credentials directly with institutions, as permitted.
6. Criminal record check: Limited to positions where it's deemed essential, and only with explicit consent.
7. Compliance with GDPR: Ensure all data collection, storage, and processing complies with GDPR.
8. Review social media with caution: Public profiles may be viewed, but private data should not be accessed without consent.
9. Credit checks: Conducted only for financially sensitive positions, with specific consent.
10. Debrief the candidate: Offer an opportunity to discuss any adverse findings, respecting the right to reply.

Run employee background checks with Deel

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