How to Do Employee Background Checks

A complete guide to employee background checks in Canada.

By Carolin Hewitt, May 7, 2024

Carolin is a Copywriter for Betterteam. She has a background in marketing communication and brand building, and has written articles about HR, branding, and small business guides.

A woman performing employee background checks on a laptop.

Employee background checks are typically used to verify an applicant's details, credentials, and employment history. They may also include a criminal background check to ensure that the candidate does not pose a risk to the company. This is usually done using a background check service.

In Canada, employers should have a valid reason to perform a background check. They should also inform the candidate of the type of information sought and that this is part of the hiring process and obtain consent. As these checks involve personal and sensitive information, employers must take care to comply with data and privacy laws.

How to Do Employee Background Checks:

25.00 CAD

5 Days

Read below to find out how to do a background check before you hire a new employee, and discover tips that will help you to develop an effective background check policy.

Take action before doing a background check.

1.1

Have a consistent policy.

This is best documented in a flow chart so everyone knows which steps to complete and at which point. Haphazard background verification check processes can cause legal issues if you are only applying some steps to some candidates, such as only doing credit checks on candidates from specific backgrounds.

1.2

Determine what type of information you want to check.

For most positions, an employment history and credentials check is sufficient. However, depending on the role and industry, some employers may want to conduct a driving record check, a credit check, and/or a criminal record check.

1.3

Get legal advice.

Background checks can unearth sensitive information and you may not be able to gather certain information as part of a background check. Talk to a lawyer to make sure your background check does not cause legal issues for your company and inquire about specific processes to follow to ensure that you do not violate any privacy or human rights laws.

Provinces and territories may have their own privacy laws.

1.4

Research background check services.

Background check services can save time and make it easy for employers to verify a candidate's background and information. Research several service providers and look at the types of checks they perform, turnaround times, security measures, legal compliance, and pricing.

Steps to take after the background check.

2.1

Do not assume parts of the background check process are routine.

Critical information will often come up in the most mundane steps of the background check. Make sure that hiring managers take the process seriously and that they pay attention to the valuable information obtained.

Give managers a list of what to look out for in each step.

2.2

Keep it professional.

When verifying previous employment, be mindful of the questions you ask and stick to factual information rather than asking for opinions.

2.3

Give candidates a chance to clear up mistakes or misunderstandings.

Information obtained through background checks can be incorrect. Giving candidates a chance to review information can help you save a great candidate that could have been excluded incorrectly.

What are Common Types of Background Checks?

1. Personal background check.

This check typically involves the verification of an applicant's identity, address, disability status, etc.

2. Education and employment history check.

Conducting an education and employment history check serves to verify the places of prior employment and the qualifications the candidate listed on their resume.

3. Reference check.

Employers conduct reference checks to find out about the candidate's work experience and their skills and performance from someone who has worked with them previously.

4. Driving record check.

This type of check is important for roles that involve driving, such as a truck or delivery driver position or one that requires the use of a company vehicle. This screening provides information about any infractions and involvement in accidents.

5. Credit check.

Generally only used by companies in specific industries, such as the financial sector or other heavily regulated industries, a credit check may reveal a history of unreliable behavior.

6. Criminal records check.

This check provides the criminal history of the applicant and is typically important for positions of security or that involve regular contact with vulnerable people.

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FAQs:

How is an employment background check done in Canada?

This may depend on the type of information an employer is looking to find or verify. If an employer just wants to verify your references, they may reach out to the individuals the candidate listed as references. For a more comprehensive background check, employers may engage a third-party service that runs background checks on their behalf.

What does an employment background check show?

The information that a background screening reveals depends entirely on the type of background check that is being run. An employment history check will serve to identify a candidate's prior places of work and is used to verify the information provided by the candidate. A criminal background check, on the other hand, will reveal any criminal convictions.

Do Canadian employers do background checks?

Yes, many Canadian employers do background checks to verify certain information about candidates they intend to employ.

What are the top five background check companies in Canada?

How can I run a background check on someone for free?

You can do a free background check by researching someone online and checking their social media history.

What shows up on a criminal record check for employment in Canada?

A basic criminal record check in Canada verifies a candidate's name and date of birth, includes a search of active criminal files in the RCMP National Repository of Criminal records, and reports any Canadian criminal convictions that haven't been pardoned, discharged, or sealed.

Do employers run a background check for employment in Ontario?

Yes, employers in Ontario may run a background check as part of their screening process for potential employees or volunteers.

What are common employment background checks in Canada?

Common employment background checks in Canada include an education and employment history check, a references check, and a driving record and criminal history check, depending on the type of job and industry sector.

Can you do an online background check for employment?

Yes, you can conduct a basic screening using an online search.

What are some background check for employment questions?

Employers typically ask about previous dates of employment, educational qualifications and the dates these were obtained, reasons for leaving prior employment, and how the candidate performed at their previous jobs.