The easy guide to employee background checks in Italy
When hiring workers abroad, it's important to take extra steps to ensure their background is legitimate and to safeguard your company against possible security or fraud issues. If you're hiring in Italy, a background check can confirm the identity and qualifications of your new hire, preventing any potential issues down the line.
Italy has strict regulations for background checks, including the Italian Data Protection Code and the European Union's GDPR rules. Companies must be careful not to gather excessive personal information from employees, which can result in fines. For example, Deliveroo Italy, a food delivery service, was fined EUR 2.5 million in 2021 for violating GDPR requirements by collecting too much personal data from its workers.
Read on for a comprehensive guide on conducting legally compliant employee background checks in Italy, including what is permitted under Italian laws and regulations, as well as your obligations for handling and storing sensitive employee data.
Are you legally required to run background checks on Italian employees?
No, you're not legally required to run background checks on employees in Italy. In general, employers in Italy are allowed to conduct background screenings on employees, but they are prohibited from verifying personal data that is irrelevant to the job position. Still, it’s crucial to abide by local regulations, including privacy laws, requesting consent, and personal data protection regulations.
Questions concerning the candidate's health or past criminal records are only permitted if necessary for the job being performed. Keep in mind, background checks are not allowed to be carried out on an employer's behalf through third parties.
Is it legal to run background checks on Italian contractors?
Yes, employers are permitted to conduct background checks on Italian contractors, but only regarding information relevant to their suitability for the job. It is necessary to obtain the contractor's approval before conducting a background verification.
What types of background checks do businesses commonly run on Italian employees and contractors?
When hiring in Italy, you can conduct different background screenings depending on the role you're hiring for, such as civil record checks, criminal record checks, employment history verification, education verification, and more.
Confirming academic qualifications and work history are the most common for almost all job positions. It's important to note that all checks must comply with Italian and European Union privacy laws to avoid potential sanctions.
Here's each type of check in more detail:
- Criminal background check. In Italy, two types of criminal record certificates are available for individuals to obtain: the Good Conduct Police Certificate and the Certificato Penale del Casellario Giudiziale. The Good Conduct Police Certificate, also known as a police clearance certificate or criminal record certificate, indicates that the individual has not committed any crimes.
On the other hand, the Certificato Penale del Casellario Giudiziale, or Penal Certificate, provides a more detailed history of any criminal convictions. This certificate is typically required for government positions or security clearance roles. They must be requested by the candidate (only if required for the job).
- Employment history verification. Confirming the candidate's employment history for the last seven years is common practice. You can contact their previous employers to check the job title, dates of employment, and eligibility for rehire, but you must obtain the applicant's explicit consent before contacting their current employer.
- Education verification. In Italy, it is common to verify the highest degree obtained by a candidate. Educational institutions will be contacted to verify attendance, graduation date, and degree information.
- Professional reference check. Employers may contact professional references to gather insights into a candidate's work ethic and role suitability when shared in the application process.
- Social media screening. Employers may conduct a social media background check as part of the hiring process to evaluate an applicant's online behavior and determine if they are suitable for the job. The screening involves reviewing the applicant's publicly available social media profiles.
What types of background checks are illegal in Italy?
- Acquiring personal sensitive data. The Privacy Code protects the rights of candidates, and background screenings are prohibited from asking about sensitive personal information such as race, political beliefs, religion, economic status, and sexual orientation.
- Discrimination based on background checks: Although employers can run employee background checks, they cannot discriminate against any employee before or after hiring them.
- Medical records check. Access to medical records and examinations is restricted to specific job roles.
- Financial records. Credit report checks and financial record investigations are reserved only for jobs in the financial and banking sector or any related role that requires financial responsibility.
When should you conduct Italian employee background checks?
If you plan to hire someone in Italy, conducting a compliant background check on the candidate is crucial to ensure they meet all the requirements. Make sure to inform the applicant about the screening process and obtain their written consent before carrying out the background check.
Any offer letter should include a clause contingent on successfully completing the background check and verifying if the candidate requires a work permit.
The easiest way to run a background check on an Italian employee or contractor
There are several different companies that can run background checks on employees in Italy, including Rippling, TritonItaly, Hireright, and BackCheck. The easiest by far is Rippling, because background checks are directly integrated into the onboarding flow. Just enter basic hiring info like salary and start date, and Rippling will send the offer letter and new hire paperwork—and automatically run a legally compliant background check and e-verify the results.
Background check mistakes to avoid in Italy
- Requesting too many background checks. In Italy, background checks are split into categories. Employers should only gather the necessary information to follow privacy laws, prevent legal problems, and keep personal data safe.
- Skipping employee consent. To comply with Italy's privacy laws, employers must first receive written consent from job applicants before conducting any background checks. Additionally, they must adhere to the guidelines established by the GDPR and Italian laws regarding using, processing, and storing applicant data.
- Collecting sensitive personal data. To comply with Italy's privacy code, it's crucial to avoid collecting sensitive demographic data about job candidates. It's best to limit background data collection to only what's necessary.
- Neglect the background check. When hiring internationally, employers must meet many requirements and verifications to comply with local laws. It's important to do a complete background check to protect your company and make sure you pick the right person for the job.
- Screen for personal religion or politics. It’s illegal in Italy to request any background screening related to the employee's personal politics, religion, trade unions, relationship status, or any other opinions that are not relevant to the job.
Rippling makes it easy to run background checks in Italy.
Frequently asked questions about background checks in Italy
Are background checks legal in Italy?
Yes, conducting background checks in Italy is legal as long as they comply with Italian and EU laws on data privacy and anti-discrimination. Employers must obtain informed consent from job applicants before conducting a background check, including criminal record checks, education and employment verification, and relevant professional references.
They must only request personal data relevant to the job, and it is required by law to inform the candidate about how their information will be used and stored.
What language do you use for background checks in Italy?
Background checks in Italy are conducted in Italian by the authorities. Any foreign background checks and documents provided must be translated into Italian.
How do privacy laws affect background checks in Italy?
The laws on data protection and privacy in Italy are robust and considerably influence background checks and employees’ personal data.
The General Data Protection Regulation (GDPR) is a European Union law established in 2016. This law applies to all EU Member States from May 25, 2018, without any additional implementation by national law. Companies outside the EU must also comply with GDPR if they handle the personal data of Italian employees.
The Italian Data Protection Authority, also known as 'Garante,' oversees compliance with GDPR and the Italian Personal Data Protection Code (Privacy Code). Employers cannot conduct data verification processes related to irrelevant information as per Article 8 of the Worker's Statutes.
A few of the regulations under the Privacy Code are:
- The employer should conduct a background check with a specific objective, such as evaluating the candidate's eligibility for a job.
- The background check company should only collect data relevant to the background check's purpose.
- The data collected during the background check must be kept confidential.
- It’s necessary to inform the applicant about the criminal background check and obtain their consent before conducting it.
If you are considering conducting a background check in Italy, employing a local lawyer or an Employer of Record like Rippling is important to stay compliant with local privacy laws.
Do different industries in Italy require different background checks?
Italy's most common background checks include education and employment history verification. But, background checks can vary by industry. For example, the employer should request motor vehicle records and a criminal record screening if the job requires driving. In industries such as finance, banking, and security, it is common for employers to request a credit report along with a criminal screening to assess the candidate’s financial responsibility.
Background checks such as criminal records, credit reports, and medical records should be limited to specific job roles.
How far back do criminal background checks go?
Background checks for criminal history usually cover a period of seven years. However, the background check may extend beyond seven years if an individual is applying for a sensitive position, such as a government role with security clearance.
What are the benefits of running background checks in Italy?
Verifying a candidate's background information, including past professional references, is crucial. In 2021, a hospital employee was investigated for fraud and extortion after receiving pay for 15 years despite not showing up for work. The hospital suffered a loss of over €500,000 due to the employee's alleged fraudulent activity.
Another example occurred in 2017 when employees from a telecommunications company in Italy fabricated revenues, invoices, and supplier transactions to meet bonus targets and conceal the unit's actual financial performance.
Background checks come with many benefits for employers, including:
- Protecting the company's reputation. Background checks can help screen job candidates who may jeopardize the organization's well-being, reputation, and workforce.
- Reducing security risks. Background checks can help filter out job applicants looking to commit fraud or create a data breach within the company.
- Better hiring quality. Conducting background checks is an effective way to filter out candidates who may have given false or inconsistent information about their employment background or educational history.
- Reducing liability. Companies can use background checks to prevent hiring individuals who engage in illegal activities or harmful behavior.
Onboard new hires and run background checks with Rippling
With Rippling's Talent Management System, you can seamlessly onboard new hires and set them up for success. Just enter basic hiring info like salary and start date, and Rippling does the rest—including running a legally compliant background check, and e-verifying the results.
Ready to hit the ground running with every new hire? See Rippling today.
Rippling and its affiliates do not provide tax, accounting or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
