Hiring in Canada: A Complete Guide to Pre-Employment Background Checks Banner
FOR EMPLOYERS
03.10.24

Hiring in Canada: A Complete Guide to Pre-Employment Background Checks

With no doubt, a key to success of any business or organization is hiring a reliable employee. In Canada, you as an employer can legally initiate a background check for employment to make an informed decision before hiring anyone. Let’s go through the basics of this.


What is an Employment Background Check and Why is it so Important?

An employment background check is a process in which you verify a potential employee’s life history to ensure they are suitable for the job and trustworthy. These checks include criminal records, education, employment history, and more. That’s how you make sure that your candidate didn’t do any fraud or violence and has confirmed education status.

 

Is it Legal to Run an Employment Background Check in Canada?

Yes, it is legal to do background checks according to Canadian laws. However, there are rules that protect the privacy and rights of any employee. You should follow federal and provincial privacy laws. As a main part, you need to ask for their written consent before starting your background check process. 

 

What Kind of Background Checks Can You Do and How Much Do They Cost?

In Canada, you can do multiple background checks.
Here are the top 5:

  • Criminal record
    To see if there were any criminal records related to a person (costs $20–$80).
     
  • Banking credit check
    Finding out were any financial crimes (costs $15–$30).

 

  • Employment history
    The previous working positions in the resume of your candidate have to be checked as well (the cost depends on the provider).
     
  • Education
    At this stage, you want to make sure that all the certificates they provide are valid and genuine (cost: $10–$50).
     
  • References
    Contact their previous employers and colleagues (you can even do it for free by calling their previous employer).


 

A Comprehensive Overview to Conduct a Background Check

To perform a background check, follow these steps:

1. Get the candidate's written consent.

2. Select the check type (credit, criminal, etc.) for the position.

3. Pick up a tool or hire an agency (more on this later).

4. Analyze the results closely and make an informed decision.


How Much Time Is Needed to Finish an Employment Background Check?

It may differ depending on the kind and service provider. Verifying employment and education can take a week or longer, especially if it involves overseas information, while checking criminal records usually takes 1-3 business days.

How Far Back Can an Employee's history be checked?

A background check may be extended over a specific time period.

For example:

  • Depending on the province and the offense, convictions from many years ago may be shown in criminal records.
  • Credit reports often span over 6 to 7 years.
  • Verification of education and employment history can go back indefinitely. 

 

Background Checking Agencies

1. Sterling BackCheck (Sterling Talent Solutions)

As a division of Sterling Talent Solutions, BackCheck is one of the biggest and most reputable background check companies in Canada. They provide thorough employment screening services that include reference checks, criminal background checks, and education verification. Businesses frequently use their services to make sure that the people they hire are qualified candidates and comply with the law.

2. Commissionaires

A reputable Canadian security firm that provides a variety of background check services is Commissionaires. They offer criminal background checks, security clearances, and fingerprinting, and they are well known for their dependability. Employers in the private and public sectors who require comprehensive and precise security inspections regularly use their services.

3. XpressChek

XpressChek provides background screenings that focus on quick and precise investigations. They provide a full range of services, such as credit checks, job and education verifications, and criminal background checks.

4. Mintz Global Screening

Mintz Global Screening is a reputable supplier of thorough background investigations. They offer reference checks, credit history checks, job verification, and criminal background checks. 

5. CPIC (Canadian Police Information Centre)

In Canada, local police agencies request the info from the Federal Canadian Police Information Centre (CPIC). These kinds of checks are especially helpful for jobs requiring a high level of security clearance or reliability.

 

Tools

Nowadays, there are many online tools that can ease the hiring process. For small companies, these online tools may be a better option than having  a contract with a background check company. 

1. Certn

Certn is an online background check service that provides rapid results. They do identification verification, credit checks, and criminal record checks. 

2. Triton Canada

Triton does screening services, such as driver's abstracts, employment and education verification, and criminal record checks. It is renowned for its quick turnaround times, to guarantee accurate pre-employment examinations.

3. Equifax

Along with job and identification verification services, Equifax is best recognized for credit reporting. Employers can check a candidate's financial and professional background by using Equifax's data to validate employment records and credit histories.

4. Verified.Me

Verified.Me is a Canadian digital identity verification platform that uses safe techniques to validate personal and professional data. Employers, banks, and other organizations frequently order this service to quickly and securely verify identities.

 

How Djobzy makes it easier for you

If you do not want to go through the hassle of checking, you can hire through Djobzy. They have a pre-installed 7-level verification system that ensures the candidates are safe to work with. It includes a proof of address, credit or debit card verification, an interview and some other checks. The higher level a person achieved, the more reliable they are. 

 

What Types of Employee Background Checks Are illegal?

1. Discriminatory Background Checks

Background checks that breach anti-discrimination legislation are prohibited. Employment screening cannot be done on the basis of protected characteristics, such as disability, age, gender, ethnicity, or religion.

2. Accessing Medical Information Without Consent

Privacy laws frequently safeguard medical records and information, including drug and alcohol testing. Without express authorization or unless mandated by law for certain positions (such as safety-sensitive tasks), employers don’t have a right to access an employee's medical history.

3. Juvenile Records

It is sometimes illegal to view a candidate's juvenile criminal record since these records are sealed or removed in order to shield youngsters from the long-term repercussions of their behavior.

 

Mistakes to Avoid When Running a Background Check

  • Not collecting signed authorization. In Canada, it is legally required to do this. Make sure you’ve got the written consent from an applicant for initiating a background check.
  • Do not depend just on a single information source. For a broader picture, use a mix of checks (criminal, employment, and education).
  • Ignoring references. Despite their time-consuming nature, they offer insightful information.


 

Summary

Pre-employment background checks are lowering the risk of recruiting unreliable employees. Recruiters may gather the best people for their positions with confidence if they respect the law, use the right services, and perform thorough background checks. 

To maintain a civil and lawful hiring process, keep privacy and fairness in mind at all times when performing these actions. Good luck in hiring.

 

Read more: 10 Tips for Hiring Right Employees for Your Business

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