Employment Screening : New Laws and Regulations

Global challenges

In 2023, Swiss and European companies operated in a dynamic job market. Despite global challenges such as the re-emergence of the Israeli-Palestinian conflict, the conflict in Ukraine and a major overhaul of the Swiss banking sector through the merger of the country’s two largest banks, Switzerland’s economy proved resilient, showcasing adaptability to emerging trends.

Information security concerns and the New Federal Act on Data Protection

The entry into force of the new Federal Act on Data Protection (nFADP) has heightened concerns about information security and data confidentiality among HR professionals. Increased demand for professionals in the fields of digital technologies, cybersecurity and data protection, reflects a broader trend towards a tech-driven and information security-conscious future.

These transformational events paved the way for Aequivalent, contributing to another highly dynamic year. The company’s IT team focused on improving the candidate and user experience by launching a new generation of our verification platform. The commercial and operational teams adapted to a wider range of clients and candidates from a variety of sectors, seeking to mitigate human risks and ensure HR (dossiers) compliance through an efficient digital solution. This period of adaption and innovation is the basis for Aequivalent’s optimism and readiness to take on new challenges.

As we set our sights on 2024, the Swiss regulatory landscape is changing significantly, particularly in the areas of background checks and information security. Two major updates to existing laws came into force on 1 January 2024, ushering in a new era of regulatory considerations for Aequivalent and its clients.

The Swiss Federal Act on Information Security modifies employee background verification in the public sector

The implementation of the new Federal Act on Information Security and its four new or updated ordinances will lead to fundamental changes in the principles for carrying out background checks of personnel in federal and cantonal institutions.

The introduction of concepts such as “shared responsibility regarding security” and a “risk-based approach” reflects a strategic alignment with international standards, in particular the ISO27001 norm. ISO27001 is recognized as a global benchmark for information security management, explicitly cites background checks on applicants and employees as a key measure for effectively managing information security. Among other verifications, criminal and financial background are generally considered of importance.

Public sector organizations, mandated to adhere to these new regulations, will need to adopt best practices, and Aequivalent, with its solid experience in working with the Swiss public sector, stands ready to assist these organizations in developing robust background checking policies.

The Swiss Federal Act on Insurance Supervision changes staff background verification in the insurance sector

The updated Federal Act on Insurance Supervision introduces articles, such as Article 14 focusing on the “Guarantee of impeccable business practices.” This article aims to ensure that individuals assuming sensitive roles within an insurance company possess appropriate professional qualifications, a good reputation, and provide assurance that their influence cannot be used to the detriment of sound and prudent management. Article 14a “Prevention of conflicts of interest,” requires insurance companies to take measures to prevent conflicts of interest that may arise during the provision of insurance services. Aequivalent is prepared to navigate and assist its clients in complying with these new legal requirements, emphasizing the importance of maintaining integrity and preventing conflicts of interest in various professional areas.

Increased regulatory demands for supervisory nursing staff

Beyond these changes, the 2024 outlook foresees other potential legislative developments, including the implementation of a cantonal practice right for independent and supervisory nursing staff. While the specific timeline may vary across cantons, Aequivalent’s proactive approach enables it to tackle legal and administrative challenges, supporting clients and their employees through this evolving legal landscape.

In the face of these upcoming legal shifts, Aequivalent remains committed to anticipating and addressing challenges. With a rapidly growing team, accumulated knowledge, and cutting-edge technological developments Aequivalent ensures a seamless and compliant experience for its customers and their evolving needs. The company is optimistic about the future and is ready to navigate the changing legal environment and contribute to the success of its clients in the years ahead.