Employee Background Checks in the Philippines: All You Need to Know

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When hiring remote employees in the Philippines, conducting thorough background checks is not just a best practice, it's a necessity. The background check plays a vital role in verifying credentials and ensuring the safety and security of your company.

In the Philippines, the core checks employers run are NBI clearance for criminal records, employment verification, and education verification. These form the baseline of any compliant pre-employment screening process.

While the fundamental principles of background checks remain consistent across borders, tailoring them to Philippine standards demands attention to detail. 

For instance, global companies extending their operations into the Philippines must grasp local regulations and the responsible management of sensitive employee information. 

Need a resource to help you run extensive but legally compliant employee background checks in the Philippines? You're in the right spot. Follow along as we delve into the essential aspects of background checks in the Philippine context, empowering you to confidently make informed hiring decisions.

What is an Employment Background Check/Verification?

An employment background check is the process of verifying a candidate's personal, educational, financial, and criminal history before hiring.

Its purpose is straightforward: confirm that the information on the resume is accurate. It helps employers assess whether a candidate is suitable for the role.

A thorough screening process supports better hiring decisions and reduces the risks of hiring unsuitable individuals. Wrong hires can affect company reputation and create financial setbacks.

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Are you Legally Allowed to Run Background Checks on Filipino Employees?

The Philippine Labor Code doesn't impose restrictions on companies and recruiters regarding background checks on applicants. Employers can request relevant information from job applicants for the position, including criminal record checks, educational verification, and employment history. However, some industries and roles require background checks, especially of the roles are: 

• Roles involving vulnerable populations like children, the elderly, or other vulnerable individuals
• Positions with safety risks, such as driving heavy vehicles, handling explosives, hazardous materials, or working in construction

While not always obligatory, several major industries in the country, including IT, manufacturing, banking, shipping, and Business Process Outsourcing (BPO), may raise safety and privacy concerns if employees aren't properly vetted.

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Why Companies Conduct Background Checks in the Philippines

Background checks help employers identify candidates with criminal records, drug use history, a record of violence or abuse, or convictions for theft or fraud. They are particularly important in industries with vulnerability and safety concerns.

Key benefits include:

• Enhanced safety: Screening for criminal records helps eliminate candidates who may pose a threat to the company's security and integrity, as well as to clients.
• Improved hiring quality: Background checks ensure that only qualified candidates who fit the job description are hired, contributing to overall company growth and development.
• Increased productivity: Hiring qualified, dedicated and professional candidates enhances workplace productivity.
• Cost Savings: Conducting detailed background checks early in the hiring process eliminates candidates with discrepancies, saving time, effort, and money.

When is the ideal time to perform background checks on Filipino employees?

The timing of background checks varies depending on the organization and employer. Some conduct verification during the pre-employment hiring process, while others perform it throughout the employee's tenure.

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What our clients are saying

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What our clients are saying

"It’s been fantastic to work with Gloroots. They got setup really fast. As a startup, it was important our Hiring and EOR partner really understood our challenges, timelines and needs. Gloroots has done just that."

Points to Keep in Mind When Performing a Background Check in The Philippines

Before initiating the employee screening process, it's crucial to grasp the nuances of Philippine background check legislation.

While the Philippine Labor Code doesn't explicitly prohibit background checks on applicants, the country's Data Privacy Act imposes certain restrictions on pre-employment background checks in the Philippines.

Here are four important things you need to remember:

1. Consent Form Requirement: Before collecting personal information, every employee must sign a consent form. This form should outline the following:

• What data will be gathered and by whom
• The purpose of the information collected
• Duration of storage
• Methods used for data collection

2. Employee Access to Information: Employees have the right to access information regarding their rights as data subjects. They can object to data processing and file complaints with the National Privacy Commission.

3. Handling Sensitive Information: Be cautious when handling sensitive personal information to avoid penalties for unlawful data processing. This includes:

• Details about an individual's race, ethnicity, marital status, color, religious or political affiliations
• Information related to health, education, sexual life, or criminal proceedings
• Social security numbers, health records, government-issued licenses, and tax returns

4. Cross-Border Data Transfers: Consent from employees is necessary for sharing their data across borders with affiliate or parent companies.

The Easiest Way to Run a Background Check on a Filipino Employee or Contractor

The easiest way to run a background check on a Filipino employee or contractor is to engage a reputable third-party background screening company that specialises in conducting checks in the Philippines. If you're hiring foreign nationals, also review the work permit requirements in the Philippines to ensure full compliance. These companies have the expertise, resources, and network to efficiently gather and verify the necessary information while ensuring compliance with local laws and regulations.

On the other hand, opting for an Employer of Record (EOR) in the Philippines is the best bet. Employers of Record often have access to resources and expertise to facilitate background checks efficiently and effectively. Background verification could be too much if you have a diverse and global workforce; however, EORs have partnerships with background screening companies or access to specialised software that streamlines the process.

Employers of Record can handle the entire background check process from start to finish, including obtaining consent from the individual, gathering necessary information, conducting background checks, and reviewing the results. They ensure compliance with local laws and regulations and maintain confidentiality throughout the process.

By leveraging the services of an Employer of Record for background checks, companies can save time and resources while ensuring thorough and compliant screening of their employees or contractors.

Background Check Mistakes to Avoid in the Philippines

Avoiding background check mistakes is crucial for legal compliance and maintaining trust with candidates. Here are some common background check mistakes to avoid in the Philippines:

• Lack of Transparency: Failing to inform candidates about the specific information being collected, who it will be shared with, and the purpose of the background check can lead to distrust and potential legal issues. Ensure transparency throughout the process.
• Failure to Obtain Consent: It's essential to obtain explicit consent from candidates before conducting background checks, especially for sensitive data. Failure to do so may violate privacy laws such as the Data Privacy Act of 2012 in the Philippines.
• Using Unverified Sources: Relying on unverified or unreliable sources for background checks can lead to inaccurate information and potential discrimination claims. Verify information from credible sources to ensure accuracy and fairness.

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Here’s how Gloroots can help you expand your team in the Philippines.

Interested in expanding your workforce in the Philippines? 

Gloroots offers a comprehensive employment and payroll platform, simplifying the process of hiring, managing, and compensating employees worldwide from a single interface. With Gloroots, you can effortlessly navigate compliance with employment laws and regulations in the Philippines, mitigating legal risks and potential fines.

Let us handle the complexities of hiring and payroll, allowing you to concentrate on scaling your teams in the Philippines and beyond.

Schedule a demo today to connect with our team.

Simplify Philippines Background Checks with Confidence

Use Gloroots’ Employer of Record platform to run legally compliant background screening in the Philippines, manage documentation, and ensure accurate verification while you focus on growth.

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Frequently Asked Questions

What types of background checks are illegal in the Philippines?

In the Philippines, certain types of background checks that infringe upon an individual's privacy or violate laws are considered illegal. These may include:

• Conducting background checks based on discriminatory factors such as race, ethnicity, religion, gender, sexual orientation, disability, or age is prohibited.
• Accessing personal data without proper consent or authorization from the individual is illegal under the Data Privacy Act.
• Conducting overly intrusive background checks that delve into an individual's private life beyond what is necessary for the job may constitute an invasion of privacy and could be illegal.

What are the types of background checks in the Philippines?

Common types of background checks conducted by employers in the Philippines, along with what each verifies and the relevant authority or source, are listed below:

How long does it take for employee background verification in the Philippines?

Straightforward background verifications typically take a few days to a couple of weeks, depending on the type of check and the responsiveness of the sources involved.

Typical timelines by check type:

• NBI clearance: 1–3 business days
• Employment verification: 3–7 business days
• Education verification: 1–2 weeks
• Professional license verification (PRC): 2–5 business days
• Address verification: 3–5 business days
• Drug and alcohol screening: 2–4 business days

More complex checks or those involving international components may take longer. Delays can also occur due to incomplete information, difficulty contacting references, or administrative backlog.

Is employee consent mandatory in background verification in the Philippines?

Yes, employee consent is required for background verification in the Philippines. According to the Data Privacy Act of 2012 (Republic Act No. 10173), which governs the processing of personal information in the country, individuals have the right to be informed and to provide consent for collecting, processing, and sharing their personal data.

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