Background Checks in Costa Rica: Legal Guidelines and Best Practices

Costa Rica is a beautiful and diverse country in Central America known for its biodiversity and eco-tourism. Many international businesses have established operations in the country, attracted by its stable political environment and highly educated workforce. The government has implemented free trade agreements with several countries to encourage foreign investments. 

The government has also reduced taxes and tariffs to facilitate foreign investments in the country. Companies can establish their business in Costa and exploit the country’s cheap labor costs and workforce. 

While hiring, companies need to conduct a pre-employment background check in Costa Rica to verify the applicant’s authenticity. This will help you avoid many potential risks and facility smoother business operations. Read on to know more about employee screening and background checks in Costa Rica!

What Is Employment Background Verification?

An employment background check is a stage in the hiring process wherein employers verify the potential candidate’s background. This process involves reviewing an individual’s personal, professional, and criminal history. Most organizations conduct an employment background verification before arriving at hiring decisions. 

Employment background verification is an essential step in the hiring process and is typically conducted by specialized background verification companies or the employer’s HR department. However, it is equally important for employers to follow all applicable laws and regulations around data privacy and protection when conducting employment background verification. 

Benefits of Background Checks in Costa Rica

There are several benefits of conducting a background check in Costa Rica. Here are some of them:

• A thorough background check ensures that a candidate is fit for the position and upholds the quality of the company’s employees. If there is any discrepancy between the claims of the person’s educational qualifications and the degrees held by them, it will be revealed in this process itself.  
• Conducting a comprehensive employee background screening in Costa Rica can help employers gain valuable insight into their behavioral patterns, which could indicate potential risks. 
• Conducting employment background checks is an effective way to minimize the risk of workplace violence by identifying and eliminating potential job candidates who could threaten the work environment.
• By hiring suitable candidates, companies can reduce employee turnover. Employees are truthful and competent for the job, which builds a vital workplace. With fewer employees leaving, companies can save up on hiring costs.
• Conducting a background search in Costa Rica and mentioning the same in the job advertisement improves the quality of job applications you receive. 

Are Background Checks Legal in Costa Rica?

It is legal to conduct pre-employment background checks in Costa Rica. However, you must adhere to the basic privacy laws regarding pre-employment background checks of potential employees in Costa Rica. You can conduct checks that include reviewing an individual’s financial and credit history and criminal records and verifying their identity. But, it must also be noted that the consent of the candidate whose background is being checked is imperative during this process.

Things to Know When Performing a Background Check in Costa Rica

There are specific parameters employers must consider while conducting an employee background screening in Costa Rica. It includes:

Employment history

• Pre-employment background checks in Costa Rica typically verify an individual’s past employment with former employers. This can be done by contacting the employers by phone or email to confirm the individual’s employment dates, job titles, and salary history.
• In some cases, employment verification may require additional steps, such as verifying the authenticity of the employer’s contact information or conducting a reference check to confirm the individual’s performance and job duties.

Education history

• Companies in Costa Rica thoroughly check the educational qualifications of the candidates they hire to weed out undeserving candidates. 

Criminal record

• To conduct a criminal background check in Costa Rica, one can contact the Public Registry and the Judicial Investigative Police (OIJ) to obtain information on any criminal convictions or ongoing cases. 
• It is important to note that privacy laws and regulations limit access to criminal records in Costa Rica, and employers must have a valid reason to request such information. 
• It is essential to obtain written consent from the screened individual and comply with all legal requirements when performing a criminal background check in Costa Rica.

Credit report

• Many employers consider checking candidates’ credit reports before making a hiring decision. 
• A credit report analysis of the candidate highlights finance management efforts. 
• This check is particularly required when hiring for positions dealing with cash. 

Social life

• A social life screening provides information on a candidate’s social behavior.
• Employers might want a few references from the candidate’s contacts for this.

Information Essential for a Background Check in Costa Rica

Here are some essential pieces of information that may be necessary for a background check in Costa Rica:

• The candidate’s full name
• The date of birth of the candidate
• The Cedula or the Costa Rican identity card of the candidate
• Proof of current and previous addresses of the candidate
• The candidate’s employment history, including job titles, dates of employment, and salary history
• The candidate’s educational qualifications, including degrees and institutions
• The criminal record with the consent of the candidate adhering to privacy laws
• The credit history of the candidate adhering to privacy norms
• Reference of former employers and colleagues of the candidate 

Process Involved in Background Checks in Costa Rica

The process involved in the background check in Costa Rica may vary depending on the type of check required and the organization or individual performing the check. However, here is a general overview of the process:

Step 1: Authorization 

• The individual or organization requesting the background check must obtain written authorization from the candidate. 
• This authorization typically includes the person’s name, date of birth, and signature on the consent form made by the company.

Step 2: Gather relevant information

• Collect the relevant details and documents from the candidates to conduct a background search in Costa Rica. 
• This may include their criminal, employment, educational, and credit history. 
• They will need their national identification number, proof of their degrees, and bank details for this. 

Step 3: Verification and review

• The information collected is verified through various sources, such as official records and references provided by the individual being checked.
• Once the information has been collected and verified, it will be reviewed by the individual or organization performing the check.

Step 4: Report

• Finally, a report is generated detailing the results of the background check. This report may include information on any criminal records, employment or educational history, and credit history, among other things. 
• Once the candidates pass these checks, the recruiting company sends them an offer letter. 

It’s worth noting that the specific process and requirements for background checks in Costa Rica may vary depending on the purpose of the check and the entity requesting it. Some companies may request certain specific details based on their internal policies.

Industries and Situations That are Most Suitable for Background Checks in Costa Rica

Background checks can be helpful in various industries and situations in Costa Rica to help ensure the safety and security of individuals and organizations. Here are some industries and situations where employment background checks in Costa Rica are most suitable:

• Financial services: Background checks are often required in the financial services industry. This includes the banking and insurance sector to help prevent fraud and protect client assets.
• Education: Background checks may be required for individuals working in the education sector, particularly those who work with children or vulnerable populations.
• Healthcare: Healthcare organizations in Costa Rica are vigilant and perform background checks on potential employees to ensure they are qualified and have no history of malpractice or misconduct. 
• Government: Background checks in Costa Rica are often required for individuals seeking employment in government positions, particularly those that involve access to sensitive information or national security.
• Volunteer work: Organizations that work with volunteers, particularly those that work with children, the elderly, or the underprivileged masses, may require background checks to ensure the safety and well-being of those they serve.

It should also be noted that the suitability of background checks may depend on each situation or industry’s specific circumstances and requirements. Hence, the decision to perform a background check is usually made on a case-by-case basis. 

How Multiplier Helps With Background Checks

Multiplier has a reliable compliance solution that can aid in mitigating risks and potential penalties that may result from non-compliant hiring practices. Streamline processes like background checks and employment screening with Multipler and ensure smooth and compliant business functions!