Article
3 minute
A Guide to Employee Background Checks in Costa Rica
Legal & compliance
Employee background checks
Author
Michał Kowalewski
Published
August 09, 2024
Last Update
August 12, 2024
Table of Contents
Key information for conducting background checks in Costa Rica
Are background checks legal in Costa Rica?
Types of background checks considered illegal in Costa Rica
Common background check industries
Common checks and less common checks
Background check mistakes to avoid in Costa Rica
Step-by-step guide of employee background checks in Costa Rica
Run employee background checks with Deel
Key takeaways
- Costa Rica has a long-standing history of institutional protection of personal data and privacy.
- Employers wishing to perform background checks on potential employees must become familiar with relevant legislation and data protection authorities.
- Even when background checks are permitted, limitations may apply, and consent from the candidate is usually required.
Employee background checks should be an integral part of your hiring process in Costa Rica. Although not mandatory, they are a common practice, especially in finance, healthcare, education, security, law enforcement, and the public sector.
Costa Rica's economy has been consistently and steadily growing for decades, thanks to a business-friendly regulatory landscape and a growing amount of trade deals with other countries. These qualities make the country an appealing destination for companies wishing to expand their presence in Central America.
With foreign expansion comes the necessity to vet potential employees carefully, to make sure they meet legal requirements, and fit company values. Employee background checks serve as a critical tool in this vetting process, helping employers make informed hiring decisions and foster a safe, trustworthy working environment.
In this article, you’ll learn:
- How to run an effective and legal employment screening in Costa Rica
- What the common types of employee checks are in Costa Rica
- How to conduct a thorough employee screening, step by step
- What mistakes to avoid when performing a background check in Costa Rica
Key information for conducting background checks in Costa Rica
Costa Rica's approach to privacy and data protection is enshrined in its robust legal framework, notably, the Ley de Protección de la Persona Frente al Tratamiento de sus Datos Personales (Law No. 8968), which highlights the country's commitment to individuals' privacy rights. Employers approaching the background check process must acquaint themselves with this legislation, alongside understanding the role of the Agencia de Protección de Datos de los Habitantes (PRODHAB), Costa Rica's data protection authority.
Unique cultural and legal considerations also come into play. For instance, the Costa Rican culture places a high value on personal privacy and respect, which translates into a cautious approach towards personal data handling during employee background checks.
- The Agencia de Protección de Datos de los Habitantes (PRODHAB) is the authority in charge of data protection for the country. Its broad scope of powers goes from informing and drafting legislation to issuing fines and penalties for non-compliance.
- The right to privacy, even relating to personal data, has been protected by the Costa Rican Constitution since the mid-1990s.
- Despite long-standing legislation, compliance and enforcement are relatively low, however, the landscape is rapidly changing.
Are background checks legal in Costa Rica?
Yes, employee background checks are legal in Costa Rica, provided they adhere to the stipulations set forth in national privacy laws and respect the candidate's rights. Employers must obtain explicit consent from the individual before proceeding with any background checks, ensuring transparency and compliance with legal requirements.
Background checks
Types of background checks considered illegal in Costa Rica
Certain types of background checks are either restricted or outright illegal in Costa Rica. For example:
- Accessing an individual's credit history without explicit consent for employment purposes is prohibited.
- Certain personal data, such as criminal records, may only be accessed with a valid reason.
- Discrimination based on personal information uncovered during background checks, such as marital status, religion, or sexual orientation, is illegal, aligning with the country's commitment to upholding human rights.
Common background check industries
- Finance and banking: Due to the sensitive nature of transactions in this market, background checks are common for potential candidates.
- Education: Potential employees in the education sector are often screened to ensure their qualifications meet the quality of educational delivery in the country, and to ensure there have been no issues relating to abuse or mistreatment of minors.
- Healthcare: Given the critical nature of healthcare services, employee background checks are common in this sector, to ensure qualifications are confirmed, and that there are no past issues with malpractice or similar liabilities.
Common checks and less common checks
| Type of Check | Common in Costa Rica | Reason |
|---|---|---|
| Criminal record check | Very common | Ensure the candidate has no criminal history that could affect the role or pose a risk to the company. |
| Employment verification | Common | Confirm previous employment history and job experience, especially important for higher-level roles. |
| Education verification | Common | Verify academic credentials to prevent fraud and ensure qualifications match job requirements. |
| Reference check | Common | Assess the candidate's work performance, reliability, and character through previous employers or colleagues. |
| Credit check | Less common | Used mainly for positions with financial responsibilities to evaluate financial trustworthiness. |
| Health and medical checks | Less common | Required for certain roles to ensure physical and mental fitness for the job. |
| Social media screening | Increasingly common | Evaluate the candidate's online behavior and presence to ensure alignment with company values and public image. |
Background check mistakes to avoid in Costa Rica
Whether you’re hiring employees or contractors in Costa Rica, there are a few things you shouldn’t do as an employer when it comes to background checks:
- Neglecting candidate consent: Always obtain explicit, written consent.
- Overlooking privacy laws: Ensure compliance with Costa Rica's privacy legislation.
- Discriminatory practices: Avoid making hiring decisions based on protected characteristics uncovered during checks.
Step-by-step guide of employee background checks in Costa Rica
- Obtain written consent: Begin by securing explicit, written consent from the candidate, clearly stating the scope of the background check.
- Verify identity: Confirm the candidate's identity through official documents.
- Confirm educational credentials: Check the authenticity of educational credentials directly with institutions.
- Verify employment history: Contact previous employers to verify positions held and durations of employment.
- Check criminal record: With consent, request a criminal record check from the "Registro Judicial".
- Check references: Reach out to provided references to gain insights into the candidate's character and work ethic.
- Check credit history: If relevant for the position and with explicit consent, conduct a credit history check.
- Screen social media: Review public social media profiles for any potential red flags, respecting privacy and discrimination laws.
- Conduct drug testing: If applicable, conduct drug testing in line with Costa Rican laws and with the candidate's consent.
- Ensure compliance: Ensure all collected information complies with Costa Rican privacy and employment laws.
Run employee background checks with Deel
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About the author
Michał Kowalewski a writer and content manager with 7+ years of experience in digital marketing. He spent most of his professional career working in startups and tech industry. He's a big proponent of remote work considering it not just a professional preference but a lifestyle that enhances productivity and fosters a flexible work environment. He enjoys tackling topics of venture capital, equity, and startup finance.
