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Regulatory Compliance Training for Employees in Chile: A Guide to Avoiding Fines and Reputational Damage

As companies expand their operations into Chile, navigating the country’s complex regulatory landscape is crucial. Employee background checks are a critical component of any hiring process, but failing to comply with regulations can result in significant fines and reputational damage.

Are Background Checks Legal in Chile?

Yes, background checks are legal in Chile, but they are subject to specific regulations and restrictions. Employers must obtain explicit consent from job applicants before conducting any background checks. The information collected must be relevant to the job’s requirements, and employers are required to protect the privacy of the information obtained.

Common Types of Background Checks in Chile

While background checks are generally permissible in Chile, certain types of checks are subject to restrictions:

• Conducting any background check without explicit consent from the job applicant is considered illegal
• Accessing sensitive personal information, such as medical records (without consent), political affiliations, or religious beliefs, is restricted
• Hiring based on financial records is also restricted, though some exceptions exist

What Types of Background Checks Are Illegal in Chile?

Asking for or obtaining pregnancy certificates is prohibited in Chile. Employers who violate these regulations may face legal consequences, including fines and reputational damage.

Common Background Check Industries in Chile

Employee background checks are prevalent across various industries in Chile, particularly in sectors where trust, integrity, and security are paramount:

• Finance and Banking: Financial institutions focus heavily on regulatory compliance
• Education: Educational qualifications and credentials are mandatory for certain roles
• Technology: Tech companies require background checks to ensure employees do not pose a risk to the company’s reputation or intellectual property

Step-by-Step Guide to Employee Background Checks in Chile

1. Identify Relevant Checks

Determine which types of background checks are relevant based on the job’s requirements.

2. Obtain Explicit Consent

Ensure you have written consent from the candidate before initiating any background check.

3. Engage a Reputable Agency

Consider hiring a professional background check agency familiar with Chilean laws and privacy regulations.

4. Conduct Criminal Record Checks

This can be done through the Chilean Civil Registry and Identification Service with the candidate’s consent.

5. Verify Educational Credentials

Contact educational institutions directly or use verification services to confirm academic qualifications.

6. Verify Employment History

Contact previous employers to verify employment history and performance.

7. Check Credit Score

With consent, obtain a credit report to assess financial responsibility (relevant for financially sensitive positions).

8. Screen Social Media

Review public social media profiles for any red flags, ensuring not to infringe on privacy rights.

9. Check References

Contact provided references to gather more insights into the candidate’s capabilities and character.

Run Employee Background Checks with Deel

There’s no need for HR to log into yet another platform or manually chase documents. With screenings in over 200 countries and territories (and counting), for employees and contractors, you can manage background checks for global hires with a single source of truth without leaving the Deel platform.

By following this guide, companies can ensure compliance with Chilean regulations and avoid fines and reputational damage. Remember to always obtain explicit consent from job applicants, respect their privacy, and conduct relevant background checks based on the job’s requirements.