Key points
- Since May 2018, the GDPR (General Data Protection Regulation) has required companies to review their data protection practices, including in human resources.
- HR departments process employees’ personal data every day, such as their name or address, and sometimes sensitive data, such as health information (Article 9 of the GDPR).
- Compliance must be built into every stage, from recruitment to day-to-day employee management.
- Security relies on encryption, system maintenance and restricting access to authorised persons only.
- Employees have, in particular, the rights of access, rectification and erasure and, in certain cases, the right to data portability; the company must respond to these requests.
- The DPO (data protection officer) advises the company, monitors compliance with the GDPR (staff awareness-raising, audits) and acts as the contact point for the supervisory authority.
Since the General Data Protection Regulation (GDPR) became applicable on 25 May 2018, companies have reviewed their practices on the protection of personal data. In human resources, this compliance work is particularly important, because it involves handling a large amount of sensitive information about employees every day.
Understanding the GDPR
To address the specific rules that apply to human resources, it helps to understand clearly what the GDPR is. This European regulation aims to strengthen and unify the protection of individuals’ data within the European Union, whatever their nationality. It applies to the processing of personal data carried out in the context of the activities of an establishment in the Union and, in certain cases, by companies not established in the Union when they target individuals who are in the Union (Article 3).
The main objectives of the GDPR are to give citizens more control over their personal information, to regulate companies’ obligations and to set strict standards for data security.
GDPR compliance in human resources
In human resources, GDPR compliance requires particular attention. HR departments collect, store and use employees’ personal data every day, such as their name, address or employment status, but also sometimes sensitive data within the meaning of Article 9 of the GDPR, such as health data. To ensure these data are managed properly, turning to an employment compliance and inspections lawyer (in French) can be a wise move.
To protect these data, HR departments must build GDPR compliance into every aspect of their processes, from recruitment to day-to-day employee management. This often means reviewing privacy policies, assessing the security risks affecting personal data and making sure that every operation involving this information complies with the GDPR principles.
Data security and employees’ rights under the GDPR
Ensuring data security is one of the key aspects of GDPR compliance. It involves implementing appropriate technical and organisational measures to protect data against unauthorised access or loss. Using encryption technologies, maintaining IT systems regularly and restricting access to data to authorised persons only are all good practices.
At the same time, companies must clearly inform their employees of their data protection rights. These rights include the right of access, the right to rectification, the right to erasure (“right to be forgotten”) and the right to data portability where the processing is automated and based on consent or on a contract (Article 20 of the GDPR). The organisation must be able to respond effectively to any request relating to these rights or face penalties.
The role of the data protection officer (DPO)
The DPO plays a central role in GDPR compliance. Appointing a data protection officer is mandatory in the cases set out in Article 37 of the GDPR (public body, regular and systematic monitoring of individuals on a large scale, large-scale processing of sensitive data), whatever the size of the company. This professional advises the company and acts as the contact point for the supervisory authority (Article 39).
The DPO can help draw up an internal GDPR framework. Their tasks include informing and advising the company, monitoring compliance with the GDPR, including staff awareness-raising and audits, and advising on the data protection impact assessment for any new project (Article 39).
HR processes affected by GDPR compliance
Several key human resources processes are directly affected by the requirements of the GDPR. During recruitment, for example, companies must make sure that candidates’ data are collected transparently and securely, solely for the purposes explicitly stated. CVs, cover letters and other personal information may be kept only for as long as necessary for those purposes (Article 5(1)(e) of the GDPR), and candidates must be informed of this period (Article 13).
During employment, information on employees’ performance, attendance or salary must be handled with the utmost care. As a proactive policy, it may be relevant to carry out regular risk analyses to identify potential future problems. Companies must also document the processing of their employees’ personal data in their record of processing activities (Article 30 of the GDPR). This requirement is part of a broader approach to making HR practices legally sound (in French).
Impact of penalties and fines on companies
Failing to comply with the data protection rules laid down by the GDPR can have serious consequences for companies. Fines can reach €20 million or 4% of total worldwide annual turnover for the preceding financial year, whichever is higher. This punitive dimension underlines the importance of GDPR compliance in limiting the financial risks linked to possible infringements.
Beyond financial penalties, the damage to the company’s reputation can be considerable. A personal data breach can lead to a loss of trust among employees and business partners, which undermines long-term economic viability. Investing in data security and compliance with the GDPR is not only a legal constraint; it is also a beneficial strategic approach for the organisation’s long-term future.
Challenges and solutions for achieving compliance
Complying with the GDPR is a major challenge for HR departments, mainly because of the complexity and diversity of the data they handle. Companies must invest in secure IT systems, train their staff continuously and develop an organisational culture focused on discretion and integrity.
Some effective strategies can be put in place to navigate the complex terrain of the GDPR:
- Regularly review employees’ confidentiality agreements.
- Set up a rigorous training cycle for HR teams.
- Use professional HR data management tools with suitable security features.
How do you build an effective GDPR framework?
Building a GDPR framework is a crucial step in aligning HR processes with regulatory requirements. A good framework identifies precisely which types of data are collected, how they are used and who has access to them.
Setting up a dashboard of the critical actions therefore not only clarifies everyone’s tasks but also gives an overview of the shared responsibilities for processing employees’ personal data.
| Process | Compliance measure | Person responsible |
|---|---|---|
| Recruitment | Create a clear privacy policy | HR manager |
| Training and development | Introduce GDPR training sessions | DPO |
| Payroll management | Ensure the accuracy and security of salary data | Accounting manager |
FAQs on GDPR compliance in HR
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For assistance: employment compliance and inspections lawyer (in French).
