How to Stay Compliant When Running International Reference Checks

From GDPR in the UK and EU to the FCRA in the US, international hiring requires an in-depth understanding of global compliance, and with remote and hybrid work on the rise, cross-border recruitment is only expected to become more common.

In this blog, we discuss the key compliance considerations for international reference checks, the risks of getting it wrong, and the practical steps HR teams can take to ensure they’re meeting these requirements.

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Understanding the Legal Differences in Global Reference Check Compliance

When hiring internationally, employers must consider each individual country’s legal restrictions that could impact their background checks. For example, depending on the country, certain information is strictly protected and may not be accessible to employers due to local restrictions.

It’s also not just about what you can ask but about whether you can ask at all and who you need permission from to do so. In some countries, a candidate’s consent might be enough to contact a referee, but in others, you’ll need permission from the referee too, especially if data protection laws apply (and they often do). What’s considered a ‘reasonable question' in the UK might be completely off-limits somewhere else.

Employers also need to be aware of any rules and regulations about how background check data can be used and disclosed — typically, this information can only be used exclusively for hiring purposes.

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Data Protection Regulations

When you’re hiring internationally, data protection laws are one of the first things you need to get clear on because these laws influence how candidate information can be gathered, stored, and used — and like everything else, the rules can vary depending on where your candidate (or their referee) is based.

In the UK and EU, GDPR sets the standard. It requires you to get clear, informed consent from the candidate before collecting or sharing any reference information. You also have to ensure the data is stored securely and not held longer than necessary.

In the US, background checks must comply with the Fair Credit Reporting Act (FCRA). This framework requires extra disclosures and gives candidates the right to dispute information, which isn’t something we often think about in the UK.

It’s worth noting that even if you’re following broader frameworks (such as GDPR or FCRA), many countries still have their own privacy laws you need to comply with. For example, you’ve got things such as Canada’s PIPEDA or Australia’s Privacy Act, each with its own rules on consent, access, and storage.

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Employer Responsibilities

When data is collected, particularly across borders, it’s incredibly important to gain documented consent from candidates and ensure that referees are aware of how their responses will be handled.

Candidates need to know what information is being collected, who it’s being shared with, and why. It’s also good practice to make referees aware that their responses might be stored or transferred internationally. Some privacy laws require this, others don’t, but it’s a simple step that helps protect everyone involved and shows that your process is both transparent and respectful.

If you're working with third-party platforms, make sure to check that they’re also set up to manage consent properly and store data in line with the necessary laws.

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Risks of Non-Compliance

It may seem like we’ve covered a lot of information already, but it’s important to ensure you don’t skip corners because falling short on compliance can have serious consequences. 

Depending on the country, breaching privacy or data protection laws could lead to anything from delays in hiring to serious legal action. Even if no formal complaint is made, poor handling of someone’s personal data can cause reputational damage and make candidates think twice about accepting an offer.

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Steps HR Teams Can Take to Get Global Compliance Right

Let’s take a look at some simple, practical steps HR teams can take to ensure they meet the requirements we’ve discussed above:

1. Take a look at your current processes — are you collecting consent properly? Do you know where the data is being stored? Are there clear rules in place for cross-border hiring?

2. Create a clear process for reference checks that includes consent collection, communication templates, and proper data storage. It can also be useful to build a simple reference guide for countries you hire in most often, highlighting any key differences.

3. Consider using a platform like RefNow that handles consent, data security, and legal requirements for you, including any adjustments needed for international hires. Automation is a great way to reduce the risk of errors and speed up the hiring process without cutting corners.

4. Laws can change, particularly when you’re dealing with multiple countries. Regular reviews, training, and clear documentation should help your team stay compliant without second-guessing their every step!

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Final Thoughts

As international hiring becomes more common, it’s worth taking a step back to look at whether your current reference-checking process is fit for purpose. What works in one country doesn’t always hold up across borders, and compliance is not something you can afford to take chances with.

Now is a great time for HR and TA leaders to audit their current processes and consider upgrading to systems that are built to handle international complexity without compromising speed or compliance. The right tools won’t just help you stay compliant; they’ll save time, reduce risk, and make international hiring checks a whole lot smoother for everyone involved.