A guide to background checks in telcos and utilities

Why are background checks important?

Hiring the right people starts with a proactive approach to risk management. This is especially so in sectors like telecommunications and utilities, where employees often have access to sensitive infrastructure, customer data, or private residences.

That’s why background checks should be a core part of your onboarding process, not an afterthought.

In the telecommunications and utilities industries, most background checks – aside from the legally required Right to Work check – are not mandated by law. However, due to the sensitive nature of the roles and the critical infrastructure involved, many organisations are now voluntarily adopting higher screening standards such as:

With employees often accessing customer premises, handling sensitive data, or working on national infrastructure, the risks of inadequate screening are significant.

We can help you determine the appropriate level of screening for each role—whether BPSS, BS7858, or a tailored combination.

Changes since the Economic Crime Act 2025

Since September 2025, updates to the Economic Crime and Corporate Transparency Act have held large organisations liable for failing to prevent fraud committed by anyone acting on their behalf. To avoid penalties, businesses must demonstrate they’ve taken reasonable steps to prevent fraud, including robust background screening.

Contractors and employees: One standard, one risk

With a high proportion of contractors in both telecoms and utilities, it’s critical that all personnel—contractors and permanent employees alike—are screened to the same high standards. Inconsistent screening creates vulnerabilities that fraudsters can exploit.

Leadership accountability is rising

Under the Economic Crime and Corporate Transparency Act, businesses and individuals making hiring decisions can be held personally accountable if fraud occurs and proper preventative steps aren’t taken.

The solution: Consistent, role-appropriate screening

We can help organisations implement screening frameworks aligned with BPSS, BS7858, and other industry standards, ensuring every individual, from frontline contractors to senior executives, is vetted appropriately.

What background checks are required?

In most roles across the UK, the only mandatory background check is the Right to Work check, which confirms a candidate’s legal eligibility to work in the UK. For UK citizens, this typically involves verifying a valid passport.

The most efficient way to complete this is through a digital Right to Work app, which accelerates the process and provides full visibility and control over each check.

However, in high-risk roles within the telecommunications and utilities sectors, we strongly recommend a more comprehensive screening approach to support compliance, safety and fraud prevention.

Recommended background checks for telcos & utilities

Social media checks, though not essential, are highly recommended. They help identify harmful content or behaviour from employees, safeguarding the company’s reputation in industries where trust and reliability are paramount.

Kayleigh Haywood, Background Checking Consultant, Experian

While this is important for all industries, it is particularly important in sectors that handle sensitive customer data and critical infrastructure.

Fit and Proper requirements for water company directors (from April 2026)

From 1 April 2026, new regulatory requirements introduce a formal “fit and proper” test for directors of water and wastewater companies in England and Wales. This forms part of wider reforms under the Water (Special Measures) Act 2025, designed to strengthen oversight and accountability at the most senior levels of the sector.

The introduction of fit and proper requirements reflects growing regulatory and public scrutiny of governance in the water industry. The regime is intended to:

• Strengthen leadership accountability and board level responsibility
• Improve organisational culture and governance standards
• Reduce risks linked to weak oversight, misconduct, or poor decision making
• Rebuild public trust in a sector facing significant environmental and operational challenges.

For employers, this signals a shift towards more rigorous due diligence and ongoing monitoring of senior leaders, aligning the water sector more closely with established regimes in financial services and other regulated industries.

What the legislation requires

Under Ofwat’s Fitness and Propriety Rule, water companies must assess whether individuals in director level roles meet defined criteria before appointment and on an ongoing basis. These include:

1. Honesty and integrity: No history of misconduct or regulatory breaches, and no unmanaged conflicts of interest.
2. Competence, knowledge and experience: Understanding of sector risks, regulatory duties, and governance, as well as evidence of leadership capability.
3. Financial soundness: Personal financial stability, and no circumstances that could impair independence or judgement.

Water companies must implement robust governance and assurance processes to demonstrate compliance. Key expectations include:

• Implement formal assessment procedures
• Assess all existing directors before the deadline
• Apply the test to all new appointments
• Maintain audit‑ready records
• Integrate the requirement into recruitment, governance, and board evaluation processes
• Demonstrate compliance to Ofwat upon request

Tips for background screening for telcos and utilities

Background screening in the telecommunications and utilities sectors presents unique challenges, particularly around speed, compliance, and candidate experience. Here are some key tips to help you overcome them.

Speed matters

Both sectors often face high candidate drop-off rates during recruitment, largely due to the slow turnaround times associated with manual background checks.

Time to hire is a key challenge for the telcos and utilities sector. Due to the competitive nature of the sector, employers need to background check their prospective employees thoroughly, but also at speed. We can help with this.

Stuart Surridge, Head of Background Checking, Experian

Manual screening processes can be time-consuming and inefficient, leading to delays that frustrate candidates, many of whom may abandon their applications or accept offers from faster-moving competitors. This not only affects talent acquisition but also impacts workforce stability and productivity.

Don’t stop at hiring: The importance of annual re-screening

If you’re investing in background checks at the point of hire, it’s just as important to consider ongoing re-screening, especially in the telecommunications and utilities sectors, where employees often handle sensitive data, access critical infrastructure, or interact with vulnerable customers.

While initial background checks are essential, they only reflect a moment in time. Annual re-screening helps reduce the risk of misconduct or changes in personal circumstances that could impact your business.

The background check is only as good as the day you run it. If you haven’t re-checked an employee for five years, you don’t know what they may have been doing during that time. We can help you recheck your employees, ensuring that nothing has changed that may affect the safety and security of your business.

Stuart Surridge, Head of Background Checking, Experian

A practical approach to re-screening

Although re-screening your entire workforce annually may not be feasible, targeted or random re-screening of specific employee groups can act as a powerful deterrent and help maintain a culture of accountability and trust.