5 Ways an HR System Helps with GDPR Compliance
Stay GDPR Compliant with an HR Software Solution

Introduction to GDPR

The General Data Protection Regulation (GDPR) is a regulation designed to protect the privacy of individuals residing in the European Union (EU). GDPR compliance is critical for businesses operating within the EU or handling EU residents' personal data. In addition, GDPR also applies to companies based outside the EU that offer goods or services to individuals in the EU, making GDPR compliance a global concern for businesses that process EU citizen data. The HR department of an organisation holds a substantial amount of sensitive data, making GDPR compliance essential for HR operations. In this blog, we will discuss how an HR software solution can help businesses meet GDPR requirements.

Understanding GDPR requirements for organisations

The GDPR imposes a number of requirements on organisations that collect, process, and store personal data. Here are the key requirements of GDPR:

1. Data protection principles

  • Personal data must be processed lawfully, fairly, and in a transparent manner.
  • The purposes for which personal data is collected and processed must be specified and explicit.
  • Personal data must be adequate, relevant, and limited to what is necessary for the purposes for which it is processed.
  • Personal data must be accurate and kept up to date.
  • Personal data must be kept in a form that permits the identification of data subjects for no longer than necessary.

2. Rights of data subjects

  • Right to access personal data.
  • Right to rectification of inaccurate personal data.
  • Right to erasure of personal data.
  • Right to restrict processing of personal data.
  • Right to data portability.
  • Right to object to the processing of personal data.
  • Right not to be subject to automated decision-making.

3. Consent

  • Consent must be freely given, specific, informed, and unambiguous.
  • Consent must be given by a clear affirmative action.

4. Data breaches

  • Organisations must implement appropriate technical and organisational measures to ensure a level of security appropriate to the risk.
  • In the event of a data breach, organisations must notify the relevant supervisory authority and data subjects without undue delay.

5. Data protection officers

Organisations must appoint a Data Protection Officer (DPO) if their core activities involve regular and systematic monitoring of individuals on a large scale, or if they process special categories of data on a large scale.

6. International data transfers

Organisations must ensure that personal data is transferred to countries outside the EU in compliance with GDPR.

7. Penalties

Authorities may impose fines of up to 4% of a company's annual global revenue or €20 million, whichever is higher, for non-compliance with GDPR.

Common GDPR violations in HR operations

  • Failure to obtain valid consent from employees for the processing of their personal data.
  • Collecting and processing unnecessary personal data of employees.
  • Retaining the personal data of employees for longer than necessary.
  • Sharing employee personal data with third-party service providers without proper safeguards.
  • Failing to inform employees of their rights under GDPR, such as the right to access their personal data or the right to object to processing.
  • Not having appropriate technical and organisational measures in place to secure employee personal data.

Challenges for HR departments/managers

Complying with GDPR is challenging for HR departments and managers who handle the personal data of employees. Non-compliance can lead to fines and reputational damage. HR departments and managers need to be aware of the challenges and implement policies to ensure compliance. Here are some common challenges for HR departments when it comes to GDPR compliance:

  • Reporting data breaches to the relevant supervisory authority and affected employees within the required timeframe.
  • Implementing appropriate technical and organisational measures to ensure the security of employee personal data.
  • Ensuring that third-party service providers who process employee personal data on behalf of the company comply with GDPR.
  • Providing employees with information about their rights under GDPR and responding to requests from employees to exercise those rights.
  • Obtaining valid consent from employees for the processing of their personal data, and keeping a record of that consent.
  • Ensuring that all employee personal data is accurate, up-to-date, and relevant to the purposes for which it is processed.
  • Keeping track of all personal data processed by the HR department, including data collected during the recruitment process and throughout an employee's tenure with the company.
5 ways an HR system can help you with GDPR compliance

As businesses collect and process more personal data, the General Data Protection Regulation (GDPR) has become a critical compliance requirement for businesses in the European Union (EU) and those that process EU citizen data. While GDPR compliance can be a complex and challenging task for businesses, HR software solutions can simplify the process by offering robust data protection and security features. Here are five ways in which HR software solutions can help you achieve GDPR compliance for your business.

1. Data protection and security

HR software solutions offer data protection and security features that can help businesses meet GDPR requirements. These features include data encryption and secure data backups. Encryption is a method of encoding data to prevent unauthorised access. HR software can encrypt employee data both during transmission and storage, ensuring that only authorised personnel can access it.

Secure data backups ensure that employee data is recoverable in case of a data breach or loss. HR software solutions can automate data backup processes, ensuring that data backups are conducted regularly and securely.

Access controls limit access to employee data to only authorised personnel. Access controls can be configured in HR software to ensure that employee data is only accessible by authorised personnel who have a legitimate need to access it.

2. Data processing and storage

GDPR requires that personal data be processed and stored lawfully, fairly, and transparently. HR software solutions can help businesses achieve this by offering features such as data retention policies and secure cloud storage.

Data retention policies can help businesses comply with GDPR requirements for data minimisation and storage limitation. HR software can be configured to automatically delete employee data after a specified period, ensuring that data is not stored longer than necessary.

Secure cloud storage ensures that employee data is stored securely, reducing the risk of data breaches. HR software solutions store employee data in secure cloud storage environments that comply with GDPR requirements for data protection and security.

3. Reporting and documentation

GDPR requires businesses to maintain documentation and reporting of data processing activities. HR software solutions meet these requirements by providing features such as audit trails and compliance reporting.

Audit trails record all activities related to employee data, such as who accessed it and when. Audit trails can be used to monitor employee data access and ensure compliance with GDPR requirements.

Compliance reporting provides businesses with reports that can be used to demonstrate compliance with GDPR requirements. Using an HRMS, companies can generate compliance reports that include information on data processing activities, data retention policies, and access controls.

4. Employee data management

HR software solutions can facilitate employee data management by providing features such as onboarding and offboarding workflows. These workflows can help businesses obtain employee consent, provide access to employee data, and ensure data accuracy by providing standardised processes for managing employee data.

5. Consent management

Consent management is a critical GDPR requirement for HR operations. HR software solutions can help businesses comply with these requirements by providing features such as e-signatures and employee consent tracking.

Companies can request consent from their employees and using e-signatures employees can provide consent to data processing activities electronically, reducing the need for paper-based consent forms.

Moreover, with HR software, businesses can easily manage employee consent by providing a centralised platform for consent tracking.

Benefits of using HR system for GDPR compliance

HR software can provide a range of benefits when it comes to GDPR compliance. These benefits include:

1. Improved data protection and security

An HRMS offers comprehensive data protection and security features that help businesses comply with GDPR regulations. Your HR team can have peace of mind knowing that their employee data is secure and protected from data breaches and cyberattacks.

2. Streamlined and automated HR processes

HR software solutions automate many HR processes, from onboarding to offboarding, time and attendance, and payroll, among others. This automation reduces the risk of human errors and ensures compliance with GDPR regulations, such as data retention periods and employee consent management.

3. Better visibility and control over employee data

HRM systems provide better visibility and control over employee data, allowing for real-time monitoring and reporting of data-related activities. This helps identify potential GDPR violations and enables effective management of data retention periods, deletion, and employee consent.

4. Reduced risk of GDPR violations and fines

An HR management system helps businesses reduce the risk of GDPR violations and fines by providing robust data protection and security features and automating HR processes. By reducing the risk of GDPR violations and fines, businesses can protect their reputation, avoid legal liabilities, and maintain customer trust.

in HRMS
Ahsan Khan 7 March, 2023
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