Project-related reviews of employees, subcontractors and contractors (including freelancers) based on customer specifications
Case study: An industrial customer and client from the USA commits its German / European service provider to carry out the following checks within a reasonable period of 30 days, for example:
– ID Check & Identity Check
– License Check & Qualification Check
– Address Check & Address History
– Directorship Check & Shareholder Check
– Database Check (Sanctions Lists Check, Compliance Checks; Global Watch Lists Check)
– Credit History & Creditworthiness Check
– Employment Check & Employment History
– Education Check & Education Verification
– Criminal Records Check
What is allowed and what is not allowed?
What do you have to pay attention to as a service provider of a US customer or client in this context?
As a German company, for example, you are subject to German or European data protection regulations and the corresponding national jurisdiction. In this respect, it is important to make it unmistakably clear to the US client that certain checks here in Germany or Europe are not legally feasible. This concerns, among other things, the checks of a crime register or criminal records, furthermore, in the USA there may be certain licenses for the exercise of a certain activity or make it absolutely necessary, here in Germany or Europe the situation in this context can be quite different.
In addition, further special points have to be taken into account from country to country. For example, no inquiries and credit checks may be carried out on French citizens or natural persons in France; it is, in turn, permitted within a certain framework for companies.
All HR-relevant checks, such as the most recent employer(s) and positions or functions, the highest university degree, any reference checks, etc., require the written consent of the target person to be checked. In Germany, nothing is possible in this context without express consent of the target person.
In principle, however, one can say that many things are still legally doable, yet in Germany and Europe one has to operate within relatively narrow legal limits and requirements. This fact does not necessarily meet with understanding or affection on the part of US-American clients, but it does not change the situation that is relevant for us in Europe.
Finally, a few figures from a non-representative survey with large German companies:
Do you ask for the original documents of the applicants?