Employment Background Checks in Luxembourg: Essential Guide

Luxembourg is strategically located in Western Europe, providing easy access to France & German markets. The country controls 60% of the EU’s GDP, making it a safe spot to open businesses. The stable social and political circumstances make the country a preferred location to start a business.

The economy of Luxembourg has a AAA rating and the world’s highest GDP per capita (PPP). These only indicate more profit for all kinds of businesses in the country. Adding to that good environment and educational system, the people of Luxembourg are skilled and knowledgeable. Hence, getting experts in required positions who can take the business to new heights is easy when doing business in the country. 

However, a company’s employment background verification is crucial for security and advancement. Read this guide on how to conduct employment background screening in Luxembourg. 

What is Employment Background Verification?

Employment background verification is a crucial stage in the hiring process wherein employers verify the information the employee provides. This process includes checking educational qualifications and previous job experiences mentioned in the job application is accurate or not. 

The national labor law and employment act governs a pre-employment background check in Luxembourg. Companies must comply with the specified laws to conduct a legal and successful background search in Luxembourg. 

Benefits of Background Checks in Luxembourg

Conducting a compliant pre-employment background check in Luxembourg can benefit a company in the following ways –

Security and safety precautions

• One of the critical features for a company to work properly and successfully is to establish adequate security and safety precautions. 
• An employment background check in Luxembourg is prioritized as it creates a safe working environment for the employees. 
• The employment background check provides accurate details to the company and acts as a prior intimation in case of future hazards. 

Improving work quality

• Every company and vacant job position requires specific standards of work history and educational qualification to maintain the quality of work. 
• A thorough background search in Luxembourg helps employers hire suitable candidates for the desired positions. 

Preventing future liabilities

• A thorough background check reveals whether a job applicant or employee is a good or bad influence. This reduces the potential legal and financial liabilities of the company. 

Improves application quality

• Whenever employment background check criteria are mentioned in the job application, the quality of the job applications employers receive improves. 
• This saves employers time as only relevant and authentic candidates apply. 

Are Background Checks Legal in Luxembourg?

There is no Luxembourg background check law that specifically prohibits or restricts a company from background checks on job applicants. However, companies must inform candidates and get their written consent before conducting an employee background screening in Luxembourg.

Moreover, EU General Data Protection Regulation protects individuals’ data whenever an employment check is conducted. The primary job of the GDPR is to ensure that companies collect and handle the data of job applicants in a responsible way.  

If a third party is hired for the verification process, their responsibilities will also fall under EU General Data Protection Regulation or GDPR Article 82. 

In verifying the criminal history part of the background check, it needs to be done under the guidance of the law, and any other procedure is strictly forbidden. The legislation on criminal records changed and came into force on February 1, 2017. 

The new legislation on criminal records law states that the employer can only request a job applicant’s criminal record if it’s relevant to the job. Furthermore, the criminal record can only be requested if such is mentioned in the job advertisement.

Things to Know When Performing a Background Check in Luxembourg

Companies must know the following aspects before conducting a background check in Luxembourg. 

Education history

• Verify the education history provided by the job applicant to confirm their expertise for the position. 
• This gives a clear understanding and authenticates the educational qualifications of the candidate.

Employment history

• An employment background check in Luxembourg is a crucial aspect of the process. 
• It allows employers to know whether the experience mentioned by the employer is authentic. 

Credit record

• Credit records stipulate whether a person is good at money management which can be essential to know for job positions like asset management or accountant. 
• The employer must mention that the applicant’s credit record will be checked in the job advertisement. 

Criminal record

• Maintaining the company’s safety and work quality at a high level requires a regular criminal background check and therefore is extremely important for background checks in Luxembourg. 
• Once the employment agreement is concluded, the employer can retain the applicant’s criminal record for only one month. If the applicant is not hired, the record must be destroyed instantly.
• If the employer requires the employee’s criminal record later again, they can ask for a recent copy of certificate no. 3 or criminal record. However, this will only be possible if the legal provisions allow the employer to ask for it.

Information Essential for a Background Check in Luxembourg

Before the process for pre-employment background check in Luxembourg is started, these are the essential things the employer should know –

• Full name of the employee
• Date of birth
• Email address
• Address
• Previous employment details
• Educational qualifications and institutions
• Reference check details

Most of these details are usually available on the candidate’s resume. Employers can get written consent from the employee before contacting the concerned authorities and previous companies. 

Process Involved in Background Checks in Luxembourg

There is no prescribed process to organize a pre-employment background check in Luxembourg. However, companies and employers can follow the below steps to conduct a background check in Luxembourg: 

Step 1: Requesting for necessary data

• Every job position requires different levels of education qualification, work experience, preferred credit, medical and criminal history, and social stance. 
• According to Luxembourg regulations, the company must specify these requirements in its job advertisements.

Step 2: Agreement of Applicant

• Companies can only access the records and other relevant details of the applicant with prior consent. 
• The applicant has to agree and give the company permission to access criminal records and other details as required by the company.

Step 3: Obtain the required data

• Once the company gets permission from the applicant to access the relevant data required for the background check in Luxembourg, the company reaches out to the relevant authorities and requests the same. 
• Social, credit, medical, and criminal history records are some of the necessary details the company checks.

Step 4: Verifying the provided data

• Once all the data is received from the relevant authorities, the employer can verify them against the data provided by the job applicant. 
• Additionally, if the employer needs to obtain or verify the recent medical condition of the applicant, they can hold a medical examination and mention the same in the job post. However, it will have to be done with the applicant’s agreement. 

Step 5: Following the post-verification 

• Employers can hire suitable employees after completing an employment background check. 

Industries and Situations That are Most Suitable for Background Checks in Luxembourg

A certain level of education and work experience is required for any job position in different industries. However, industries require an extra pre-employment background check in Luxembourg to ensure suitable candidates are hired.

Some industries that require a thorough background search include education, finance, and healthcare. Apart from educational qualifications, criminal background checks are mandatory in the transport sector. Similarly, medical records and other similar details are necessary for the medical and hospitality sector when performing an employment background check in Luxembourg. 

How Multiplier Helps With Background Checks

Multiplier is an EOR platform with experts across over 150 countries. We can help you hire, manage payroll, and draft contracts for the local employees your company needs to hire in a different country. Our experts know the rules and regulations in different countries, assisting you in complying with the country’s laws.

We have collaborated with third-party agencies that can help you with the employment background check in Luxembourg. While we take care of the hiring process, the agencies can help with the background check on job applicants for different job positions. This can make hiring efficient and the right employees for your company easy.