GDPR sets standards for collecting, storing and processing any personal data related to individuals. Failure to comply can result in financial penalties and damage to trust and business reputation. Let’s look at GDPR compliance in the workplace and the steps organisations operating in the UK need to take to maintain compliance.
Understanding GDPR in the workplace, UK
All organisations operating in the UK as well as those outside the UK that offer goods or services to UK residents or monitor their behaviour must comply with the UK GDPR rules. These cover the following areas:
- HR practices: Employee data is to be handled in accordance with the UK GDPR.
- Employee rights: GDPR for employees guarantees certain rights, such as access to data and objection to certain types of data processing.
- Data protection policies: Businesses have to regularly review and update their data protection policies to reflect any changes in regulations.
The Information Commissioner’s Office (ICO) governs these principles and oversees compliance with the UK GDPR.
GDPR and employee data: key strategies
Remaining compliant with the UK GDPR requires a strategic approach. The following strategies are essential for UK businesses seeking to build a culture of data protection in the workplace.
1. Data minimisation and purpose limitation
Gathering only necessary data for HR functions is crucial for companies. While big data is often helpful in business, in this instance, it is recommended to hold the least amount of data possible to fulfil the necessary functions.
This is important to understand in the context of purpose limitation. Minimising data collection doesn’t mean organisations must avoid collecting data altogether. However, any data gathered should have a specified, explicit and legitimate purpose. This guarantees that organisations collect only relevant and necessary data and process it in a way aligned with these core purposes.
2. Lawful basis for processing
Under the UK GDPR, processing employee data requires a lawful basis. These include contractual necessity, legal obligation, vital or public interest, and legitimate interest. The latter means that an organisation can process data if it has a genuine and legitimate reason, provided that this interest does not override the rights and freedoms of the employee (the subject of the data). It is always beneficial to document the legitimate interest to demonstrate this balance and ensure compliance.
3. Transparency and communication
Organisations are required to provide clear and concise information to employees about their data, including purposes, legal bases, recipients, and storage periods. This requirement fosters good data processing practices and also builds trust. Employees must be aware of their rights under the UK GDPR, including access to their data and the right to lodge a complaint with the ICO.
4. Data security and breach procedures
The government’s survey on data breaches in April 2024 showed that half of businesses (50%) in the UK had experienced some form of cybersecurity breach or attack in the last 12 months. Their research estimates that the cost of an average of £1,205, jumping to £10,830 for medium and large businesses.
A proactive approach to data security is much better than reacting to breaches. Companies must have a clear procedure for reporting and handling data breaches, ensuring timely notification of affected employees and the ICO if necessary.
Organisations also need to consider robust security measures when selecting HR software. All tools in use should have high-level encryption and access controls.
5. International data transfers
The EU has granted the UK an adequacy decision, which recognises the UK’s data protection standards as essentially equivalent to the EU’s. This decision allows personal data to flow freely from the EU to the UK. The adequacy decision is currently valid until June 2025 and may be reviewed at that point.
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GDPR for employees: Rights and responsibilities
Individuals’ data rights are central to the UK GDPR in the workplace, and UK organisations are required to understand these rights to ensure compliance.
Employee rights under GDPR
- Right to access — Employees have the right to request access to their personal data held by the employer (Data Subject Access Request DSAR), and employers must respond within one month. This is extendable by two months for complex requests.
- Right to rectification: Employees can request employers to correct inaccurate personal data.
- Right to erasure (right to be forgotten) — Employees can request the erasure of personal data with certain exceptions, such as when the data is needed for legal obligations, exercising or defending legal claims, or for reasons of public interest. The right to erasure is not absolute.
- Right to restrict processing: Employees can request that their data processing be restricted under certain conditions.
- Right to object: Employees can object to the processing of data for direct marketing or other purposes. However, the right to object to processing based on legitimate interests is not absolute and can be overridden if the organisation demonstrates compelling legitimate grounds which override the interests, rights, and freedoms of the data subject.
- Right to data portability: Employees have the right to receive their personal data in a structured, commonly used format and to transfer it to another controller.
- Right not to be subject to automated decision-making: Employees have the right not to be subject to decisions based solely on automated processing, such as profiling.
The above summary is a comprehensive overview of employee rights. However, it’s crucial to remember that these rights are not always absolute. The UK GDPR includes specific conditions and exceptions that may apply to each right.
Employee responsibilities
- Awareness and compliance: Employees need to be aware of GDPR principles, and their role in maintaining data protection at work.
- Reporting breaches: If employees have any concerns or information about data breaches, they must report it to their employer.
- Cooperation with DSARs: Employees should cooperate with their employer in responding to DSARs and other GDPR-related requests.
GDPR in HR: implementing best practices for compliance
GDPR in the UK workplace involves many moving parts. To ensure compliance, the following three core strategies enforce best practices:
1. Data processing
At the heart of GDPR compliance in the workplace is how organisations process and deal with the data. UK businesses must:
- Identify a valid legal basis for processing employee data.
- Avoid relying solely on consent to its potential limitations.
- Collect and retain only the minimum amount of necessary and purposeful data to cover core HR functions.
- Establish clear, well-documented policies that outline timeframes for retaining the different categories of employee data.
- Ensure data is not kept longer than necessary.
- Choose third-party solutions for HR functions that are GDPR-compliant and have appropriate contractual arrangements in place.
- Maintain detailed records of all processing activities to demonstrate compliance.
2. Data security
Organisations must prioritize security in data processing to strengthen GDPR compliance and foster a culture of strong privacy. This can be achieved by:
- Implementing robust measures covering encryption and access controls.
- Performing regulated data security audits to protect employee data.
- Implementing strong access controls, including strong password policies and locking unattended electronic devices.
- Establishing clear procedures for reporting and handling data breaches.
3. Data awareness
To ensure these policies and procedures have the desired impact, businesses must also have a strong strategy for ensuring and increasing data awareness around GDPR compliance. This means it is important to:
- Provide clear, detailed privacy notices to employees at the outset of their employment and update them regularly regarding how their personal data is used, what data is collected, and its purpose.
- Ensure employees understand GDPR principles and their rights under the law.
- Provide regular training to HR staff and employees to ensure they understand their role in maintaining data privacy.
- Develop processes to handle data subject requests, like DSAR.
Conclusion: ensuring compliance with professional solutions
Respecting GDPR in the workplace in the UK requires more than just strict policies for compliance. The best approach for companies is to create a structured framework, integrating best practices into daily operations. By prioritising data security, employee awareness and clear communication, businesses can build a strong culture of data protection at work.
Selecting the right HR tools that support and enhance this framework is a must. Our comprehensive HR and payroll solutions help support the organisation’s GDPR compliance journey. With secure data management tools, robust privacy frameworks, and industry-leading expertise, we can help businesses navigate complex data regulations. Organisations can strengthen their data protection while ensuring a seamless employee experience. Learn more about simplified compliance solutions by getting in touch with our experts.