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Legal Issues and Considerations Associated with Employee Background Checks in Canada


— August 7, 2024

Your current employees and staff will feel safe and secure at work when you run a pre-employment background check because they know they can count on the person sitting next to them.


When you’re running a business, you want everything to be in good shape, from how operations are run to how your employers work. Running a background check can help employers find the best employees for their business in which they can put their trust. 

The process can seem like an expensive endeavor, but it’s worth it in the long run because you can get benefits such as increasing the quality of job applications; if you’re upfront about running a pre-employment check, it will encourage applicants to reduce any discrepancies or misstatements in their resumes. Weeding out under-qualified individuals will save the company time, as hiring managers will only interview promising clients. 

Background Checks Commonly Ran on Canadian Employees

Here are a few examples of common background checks: 

Criminal record checks: You search the criminal database for prior warrants, charges, or convictions. Consider working with companies like Triton Canada for quick and easy results.

Employment verification: By contacting their previous employer, you can verify their job responsibilities, title, and employment history

Credit checks involve looking into their financial status and credit history for financial responsibility positions, such as banking or accounting. 

Reference checks: Consider contacting the candidate’s professional or personal reference to learn more about their performance, work ethic, and character to identify any red flags, such as being habitually late or constantly job hopping. 

Education verification: You can contact the applicant’s educational institute or request transcripts to confirm their qualifications. 

Less common background checks include looking into medical records, social media profiles, or driving records. It can depend on the role. For example, you’ll consider an individual’s driving record if you’re looking to hire a delivery person.

A computer keyboard. One of the buttons is marked with a fingerprint.
Public Domain image courtesy of pxhere.com. CC0

You cannot discriminate against anyone in Canada based on medical history. Still, you can request a doctor’s note if they ask for accommodations or adjustments based on a medical condition or disability. 

Legal Considerations and Issues

Here are some legal issues and considerations you should keep in mind when you run a background check

  1. Get Written Authorization

When it comes to employee background checks, employers have to adhere to privacy laws in Canada, which protect employees throughout the background check process. You must obtain written consent from them before conducting a background check and collecting, using, or disclosing their personal information. Use a written document to notify the applicants, which is separate from other application or employee documents to alert them that you will conduct background checks. 

  1. Notify the Applicants

If you decide to act based on the background check information, such as not hiring the applicant, you must provide them with a copy of the report and a summary of their rights. This would allow them to review the report, dispute any inaccuracies, and defend themselves. 

  1. Do not Discriminate 

Under the Canadian Human Rights Act, you must comply with anti-discrimination laws. Background checks must not be used to disproportionately exclude individuals based on race, color, national origin, sex, religion, disability, or age. Instead, ensure that the criteria used in background checks are job-related and consistent with business necessity. For example, suppose you’re hiring a financial analyst. In that case, you will consider the applicant’s credit history or criminal history related to theft, embezzlement, or fraud as it directly relates to their role. 

You must further apply the same criteria for background checks for all candidates applying to that position. Let’s say an individual does have a criminal record; then consider the nature of the crime, the time elapsed since the conviction, and the relevance to the job. Don’t disqualify the candidate if someone has a non-violent, non-financial offense, such as trespassing or unlawful assembly. 

Endnote 

Your current employees and staff will feel safe and secure at work when you run a pre-employment background check because they know they can count on the person sitting next to them. Knowing that you’re not exposing your company’s good name and reputation to undue risk will put your mind at rest.

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