Background Check In China

What are the Benefits of Background Checks in China?

Background checks offer several advantages for companies, especially when making hiring decisions and avoiding legal troubles. Conducting a background check in China before hiring may resolve the following concerns: 

• Verifying education and employment history reduces the risk of fraudulent credentials. It can prevent hiring someone with fake degrees or inflated work experience, ultimately protecting the company's reputation and resources.
• Learning about the criminality of candidates will improve workplace safety for other employees and secure company resources. 
• Onboarding employees with a history of honesty and responsibility can improve trustworthiness and productivity in the work environment. It is possible through reference checks from previous employment. 
• Eventually, investing in background checks can help hire qualified candidates who are a good fit for the company culture. It will improve employee retention and reduce the costs associated with frequent recruitment and onboarding.

What are the Types of Background Checks in China?

Staffing requirements are a pertinent challenge during global business expansion. While some companies prefer to relocate employees to foreign lands, most hire locally. 

Here is where background checks can objectively assess the suitability of candidates in the country of your expansion. In this section, we will discuss some common types of background checks conducted in China:

Criminal record 

A criminal record certificate in China, also known as a Police Clearance Certificate, is official documentation to report offenses comparable to felonies and misdemeanors. 

You can now make informed decisions about hiring for specific job roles and sensitive industries.

In China, only job applicants can obtain a criminal record certificate from the local police. You need the following documents to obtain a police clearance certificate:

• Passport
• Visa
• Chinese residence permit (or proof of residence)
• Work Permit (or degree certificate or graduation certificate)

If the applicant is unable to submit these documents in person, they have to submit a Power of Attorney (PoA). 

Employment history 

You can confirm the candidate's past work experience outlined in their resume or application through employment history checks. It offers a layer of security and helps you make informed hiring decisions. You should consider conducting an employment background check in China to:

• Ensure the candidate possesses the experience they claim.
• Assess the candidate's skill sets, work ethic, reliability, and performance.
• Investigate inconsistent employment history or unexplained gaps.

China doesn't have a centralized database for employment records. Therefore, the primary source for verification is contacting the candidate's previous employers directly to gather details like:

• Start and end dates of the candidate's employment.
• The specific job title held by the candidate.
• Why did the candidate leave the previous position?
• Whether the previous employer would be willing to rehire the candidate.
• Any additional insights from the employer regarding the candidate's performance or skills.
• If the previous employer is willing to disclose the last withdrawn salary. 

Education history

You can conduct a thorough verification process on the candidate's education history, verifying their listed qualifications meet the job requirements. You can verify the accuracy of the following details:

• The name of the educational institution and the type of program enrolled.
• The official date of graduation or receiving their degree.
• The specific degree awarded (e.g., Bachelor of Arts, Master of Science).
• The primary and secondary fields of study the candidate pursued.
• Any academic achievements or distinctions the candidate received.
• Any additional information the institution provides regarding the candidate's academic performance or standing.

The primary verification method involves contacting the educational institutions directly. While not always necessary, you can approach the China Academic Degrees and Graduate Education Development Center (CDGDC) to verify academic records for postgraduate and some undergraduate programs.

Medical screening

Medical screenings in China aim to assess a candidate's physical and sometimes mental health to ensure workplace safety and job suitability and potentially reduce absenteeism. 

Consequently, China's Personal Information Protection Law plays a crucial role in medical screenings as it forces employers to focus on:

• Medical inquiries are directly relevant to the job requirements and essential functions.
• Candidates’ right to understand the purpose and scope of the screening before providing written consent.

You cannot inquire about unrelated aspects like marital status or childbearing status nor mandate pregnancy tests. In fact, in a 2020 landmark judgment, a Beijing court ruled in favor of a transgender employee who was fired for taking leave for gender-affirming care. 

Social credit check

China's Social Credit System (SCS) is a work in progress and is currently not used for employee screening in China. While its stated goals of promoting trust and social governance hold merit, China's SCS is limited currently to financial creditworthiness, similar to credit reports in other countries. 

You can utilize such checks to assess candidates’ financial responsibility and debt management to prevent fraud and judge employment suitability and reliability.

Social media check

It is less common to consider candidates’ social media presence for background checks in China during hiring. You must obtain prior consent and restrict your social media check to publicly available information. 

Moreover, unlike many other countries, China has its dominant social media platforms, such as WeChat, Maimai, Douban, and Dajie, which are LinkedIn equivalents. At the same time, Sina Weibo, Qzone, Renren, and Lofter are Facebook and Instagram equivalents.

Requirements for Background Check in China

Here's a breakdown of the requirements for background checks in China:

• Before initiating any background check, you must obtain written consent from the candidate. It ensures transparency and respects their privacy.
• All aspects of background checks and employee screening in China, including less common things like social media checks and medical screening, should focus on information directly relevant to the job requirements and the candidate's suitability for the role.
• China's Personal Information Protection Law (PIPL) governs the collection and use of personal data. Ensure all data collected during the background check is stored securely and disposed of properly when no longer needed.
• Avoid using background check information to discriminate against candidates based on protected characteristics like ethnicity, gender, or disability.
• Be transparent with candidates about the background check process and what information will be reviewed.

Steps in Conducting Background Checks in China

You can conduct a thorough and ethical background check process in China through the following steps: 

1. Preparation and consent:

• Outline the types of checks you conduct (refer to section above) and ensure they comply with China’s data privacy regulations (PIPL).
• Before initiating any background check, get written consent from the candidate. Make sure to explain the purpose and scope of the check clearly.
• Consider partnering with a background screening agency experienced in China to simplify the process, ensure compliance with local regulations, and overcome language barriers. 

2. Information gathering & conducting the checks:

• Gather details from the candidate's resume and application, including education history, employment history, and contact information for references.
• Determine the appropriate channels for verification depending on the check type. 

• Specific procedures vary based on the type of background check in China. For instance, you can directly contact the education institution or previous employer to verify candidates’ claims. However, you cannot obtain a criminal record certificate in China on their behalf. 

3. Reporting and review:

• Gather all the information obtained from different verification sources.
• Analyze the information focusing on job-related aspects and adherence to data privacy regulations.
• Store all background check documentation securely and dispose of it properly when no longer required.

4. Decision and communication:

• Consider the background check findings and the candidate's skills, experience, and interview performance during the final hiring decision.
• If the background check reveals any concerns, communicate them to the candidate and allow them to explain before making a final decision.

Are Employee Background Checks Legal in China?

Yes, employee background checks are legal in China. The laws allow you to conduct background checks on potential and existing employees, and you are bound by Personal Information Protection Laws.

Most global companies must realize that establishing legal compliance throughout hiring process crucial. For instance, your emphasis on conducting background checks in China legally and ethically will enhance your corporate identity and, thus, attract a more potential pool of candidates.

Planning to hire in China? Here’s how Skuad can help

Skuad understands the complexities of hiring and managing a global workforce. While we can't directly help you conduct a background check in China, we can still help you manage your global workforce with our EOR services.

Skuad offers valuable EOR solutions for your international team and can assist you with the following: 

• Streamline the onboarding process for new hires with automated workflows.
• Manage and administer benefits packages for your global team efficiently.
• Simplified payroll processing and ensured compliance with local regulations in over 160 countries, including China. 
• Simplify contractor classification and independent contractor payments internationally.
• Conduct compliant background checks in the country you are hiring. 

Contact Skuad's experts today to discuss how our solution can streamline your global workforce management, even with the limitations on background checks in China. For Skuad to handle background checks in China, partner with us for EOR.

FAQs

Q1. Does China do background checks?

A1. Yes, Chinese law allows background checks, but with limitations on medical screening and social media checks. Furthermore, China is innovating with the Social Credit System, which will grade citizens according to societal norms and encompass most background checks. This is still a work in progress.   

Q2. How does employment work in China?

A2. China's Contract-based employment system is widely accepted. You must draft written contracts mentioning detailed work conditions and employee benefits. For hiring and employee screening purposes, background checks may focus on verifying education and work history, with limitations on criminal checks and social media due to privacy laws.

Q3. What are the labor conditions in China?

A3. Labor conditions in China may vary across regions. While legal protections exist, Long working hours and pressure to meet targets are expected. In recent times, courts have been fining employers who practice discrimination in the workplace or follow negligent workplace safety practices. 

Q4. What are the working hours laws in China?

A4. China's standard workweek is 40 hours, with a maximum of 1.5 hours of overtime allowed per day and 36 hours per month. However, most employers follow illegal working hours, termed as "996" workweeks (9 am to 9 pm, six days a week), raising concerns about overwork.