A Guide to Employee Background Checks in Finland

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

Finland consistently ranks at the very top of Gallup's yearly ranking of happiest countries. That may come as no surprise, given the country's stable economy which is predicted to grow despite challenges due to inflation and sanctions on Russian gas supply, its strong policies in support of residents, and a business ecosystem that is attractive to foreign investors and skilled employees alike.

Background checks in Finland can be an invaluable tool in the hiring process, helping ensure the best, and most reliable, talent is selected for each role. This is especially true for sectors in which trust and security are vital. However, background checks must be conducted in compliance with the mandates of the Finnish regulatory landscape, which includes local legislation as well as the broader scope of the GDPR, to ensure personal data and privacy are protected and avoid potential legal issues.

In this article, you’ll learn:

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

Essential information for a background check in Finland

At the core of Finland's data regulation and privacy landscape is the European General Data Protection Regulation (GDPR), which has been in force in all member states of the European Union since 2018. In addition, Finland has passed several supplementary laws to cover specific aspects of data protection, from digital communications to the privacy of the working life.

As a result, Finland has strong and specific data and privacy protection in place, which should be well understood, and complied with to successfully leverage the opportunities the country has to offer.

• The Office of the Finnish Data Protection Ombudsman is in charge of monitoring compliance with data protection laws across the country.
• The Act on the Protection of Privacy in Working Life (759/2004) is especially important for potential employers, as it regulates aspects of privacy specific to the workplace.
• Beyond regulation, Finnish culture highly values egalitarianism and privacy. Cultural aspects like these should also be considered when planning how to implement background checks in the hiring process.

Are background checks legal in Finland?

Yes, background checks are legal in Finland, provided they comply with the Data Protection Act and GDPR and local legislation. Employers must inform candidates about the checks, obtain their consent, and ensure the process is directly relevant to the job requirements. Furthermore, regulations emphasize the necessity of proportionality and relevance, meaning that background checks in Finland are heavily limited, safeguarding against discriminatory practices.

What types of background checks are illegal in Finland?

Certain types of background checks are considered illegal or restricted in Finland. These include:

• Invasive inquiries into personal life without direct job relevance, such as checking personal social media accounts
• Access to medical records, and medical examinations are both heavily restricted
• Checks that could lead to discrimination, such as those related to personal life, political opinions, or religious beliefs, are not allowed.

Common background check industries in Finland

In Finland, 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: Finland's strong financial sector necessitates thorough background checks to prevent fraud, ensure the proper handling of funds, and protect customer data. These checks uphold the integrity and trustworthiness of financial institutions within the country.
• Healthcare and education: In Finland, professions within healthcare and education involve close interaction with vulnerable groups, including minors and the elderly. Background checks are standard to ensure that professionals meet the required standards and have no legal history that could endanger the well-being of individuals under their care.
• Information technology and cybersecurity: Finland places a high emphasis on IT and cybersecurity. Employees in these sectors often have access to sensitive data and systems. Background checks are essential to verify trustworthiness and competence, ensuring the protection of digital assets and infrastructure.
• Nuclear energy and engineering: Finland invests significantly in nuclear power and advanced engineering projects. Given the potential risks associated with these industries, comprehensive background checks are conducted to ensure that personnel possess the necessary qualifications and have no legal issues that might compromise safety standards.
• Aviation and maritime industries: With a notable presence in both aviation and maritime sectors, Finland requires background checks for roles that impact national security and safety. These checks verify that individuals have the appropriate certifications and a clean legal record, maintaining high standards within these critical industries.

Types of background checks in Finland

Effective employment screening in Finland 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 Finland

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

• Ignoring consent: Always obtain explicit consent before initiating any checks.
• Overstepping boundaries: Avoid delving into areas of a candidate's life that aren't relevant to the job.
• Lack of transparency: Be clear about the purpose and scope of the background checks.
• Non-compliance with GDPR: Ensure all data handling complies with GDPR and Finnish privacy laws.

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

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

1. Inform and obtain consent: Begin by informing the candidate about the background check, outlining its scope, and obtaining written consent.
2. Identify relevant checks: Determine which types of checks are relevant based on the job role, such as criminal records for security-sensitive positions.
3. Contact previous employers: Verify employment history and references directly with past employers, focusing on job performance and qualifications.
4. Verify educational: Confirm academic credentials with educational institutions, ensuring qualifications meet job requirements.
5. Chech criminal record: For roles where it's relevant and legal, request a criminal record check through the Finnish Legal Register Centre, with the candidate's consent.
6. Perform credit checks: Where financially sensitive positions are involved, conduct a credit check through authorized agencies, again with consent.
7. Perform health checks: If job-specific health standards are required, arrange for medical examinations, ensuring compliance with privacy laws.
8. Monitor social media and online presence: With explicit consent, review publicly available online information that's relevant to the job role.
9. Ensure compliance with GDPR: Throughout the process, ensure all data collected is handled according to GDPR guidelines.
10. Run a feedback round and make a decision: Provide feedback to candidates and make informed hiring decisions based on collected information.

Run employee background checks with Deel

There’s no need for HR to log into yet another platform or manually chase documents. With screenings in over 200 countries and territories (and counting), for employees and contractors, you can manage background checks for global hires with a single source of truth without leaving the Deel platform. Are you looking for an easy and safe way to run a background check? It only takes minutes to get results with Deel.