The GDPR and its importance for employers

As an employer, you are responsible for the protection of your employees' personal data. The General Data Protection Regulation (GDPR) is the European privacy law that ensures personal data is processed in a safe and responsible manner. This law has far-reaching implications for your organisation, from how you collect data to how you store and share it. We will tell you more about the key aspects of the GDPR for employers and why compliance is so important.

Protection of personal data is fundamental

The GDPR requires employers to handle employees' personal data carefully. This includes, among other things, payslips, medical data and even identification documents such as an ID card. The aim is to safeguard employees' privacy and prevent data from falling into the wrong hands. Employers must take measures to secure the data properly, for example through encryption or secure storage on internal systems. 

The processing of personal data must always be based on a legitimate reason, such as for the execution of an employment contract. Personal data must not be retained longer than necessary for the purpose for which they were collected. The GDPR thus places a responsibility on employers to handle this data transparently and responsibly.

Rights of employees

The GDPR Has Significantly Strengthened the Rights of Employees and Freelancers. Employees and freelancers now have the right to access, correct, and even delete their personal data. This applies to all data that an employer has collected about them, such as employment contracts, performance reports, or absence records. Employees can expect action to be taken within one month after making a request to their employer.

As an employer, you must be prepared to respond to these requests quickly and carefully. This means maintaining up-to-date records and having procedures in place for handling employee requests. It is also important to inform employees in a timely and clear manner about how their data is processed and for what purpose.

Employer's accountability

Employers have an obligation to demonstrate compliance with the GDPR. This means keeping documentation on how and why personal data is processed. One way to do this is by maintaining a processing register. This register should record which data is processed, how it is secured, and who has access to it.

You must also clarify which employees, suppliers, or third parties have access to personal data and what measures are in place to ensure security. This means that everything must be well-organized not only on paper but also in practice. For example, as an employer, you should be able to demonstrate which technical measures have been implemented to protect personal data, such as password policies or data encryption.

Sanctions for breaching the GDPR

Non-compliance with the GDPR can have serious consequences. The Information Commissioner's Office (ICO) can impose hefty fines for violations of the law, which can amount to €10 million or 2% of an organisation's total worldwide annual revenue. In cases of serious violations, the fine can even reach €20 million or 4% of the revenue. Employers should be aware that they can face high fines, as well as reputational damage. This can undermine the trust of employees and customers. It is therefore essential to ensure proper implementation of the GDPR and to ensure that all privacy measures are up-to-date and effective.

How do employers handle the GDPR?

As an employer, you are always dealing with personal data of your employees. This happens almost automatically in the daily business operations, for example when you prepare pay slips or store absenteeism documents. The GDPR provides a framework that encourages employers to handle this data consciously and responsibly. For the safety of your employees, but also for the success and future of your business. 

Taking employee privacy seriously builds trust and prevents legal issues. Complying with the GDPR not only ensures adherence to legal requirements but also enhances the protection of both the organization’s and employees’ interests.

Practical implementation of the GDPR

Ensure that employees are well-informed about how their personal data is processed. This can be done through a privacy statement that clearly outlines what data is collected, why it is collected, and how long it is retained. You should also explain their rights and how they can exercise them.

If you collaborate with third parties that have access to personal data—such as an external payroll administrator or a cloud provider—you must establish a data processing agreement. This agreement defines the responsibilities and obligations related to data processing.

Maintain a processing register and implement security measures

A processing register is an overview of all personal data processing activities within your organization. This document is mandatory for employers with more than 250 employees, but even smaller organizations are advised to maintain one.

Take the necessary steps to protect employees’ personal data. This includes technical measures like data encryption and organizational measures such as restricting access to sensitive information.

Why comply with GDPR regulations?

The GDPR safeguards employees’ privacy and ensures that companies handle personal data responsibly. As an employer, this means fulfilling a legal obligation while also strengthening your reputation as a trustworthy and responsible employer. Taking the time to implement the right measures ensures compliance with the regulations and prevents unexpected issues.

Need help navigating GDPR compliance? Check out our other blog articles for insights into employer-employee relationships and legal requirements. You can also contact us for freelancer contract management—we’re happy to assist!