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How GDPR Affects HR Compliance In Background Screening
GDPR has revolutionized the way organizations handle personal data in all aspects of the business and HR is no different, especially when conducting a background screening.
As HR professionals seek to navigate the complexities of data protection in Europe, understanding the key principles and practical implications of GDPR compliance becomes essential—and a best practice.
The Foundation of GDPR
GDPR, which came into effect more than six years ago, applies to all organizations processing personal data of EU citizens, regardless of where the organization is located. The regulation aims to provide individuals with greater control over their personal data, ensure transparency in data processing, and create uniformity in data protection.
GDPR is not just a legal requirement; it’s about respecting individuals’ privacy and building trust. For HR professionals, this means handling employee data with the utmost integrity.
Data Controllers vs. Data Processors
Because background screening involves collecting and processing a wide array of personal data, from employment history to criminal records, it requires stringent compliance measures to protect the rights of the data subjects.
In this context, HR departments typically act as data controllers, determining the purposes and means of processing personal data. On the other hand, background screening companies act as data processors, processing data on behalf of the controller. Both roles have distinct obligations under GDPR.
Controllers must ensure that they have a legal basis for processing personal data and are responsible for upholding the rights of data subjects.
Meanwhile, processors are required to process data only under the controller’s instructions and implement appropriate technical and organizational measures to safeguard the data.
The distinction between controllers and processors is crucial under GDPR. HR professionals must understand their role and responsibilities in maintaining compliance throughout the data processing lifecycle.
Key GDPR Requirements for HR in Background Screening
- Legal Basis for Processing: HR must establish a legal basis for processing personal data. This can include consent from the employee, necessity for the performance of a contract, or compliance with a legal obligation. The choice of legal basis must be clearly communicated to the data subjects.
- Data Minimization: GDPR mandates that only the necessary personal data should be collected and processed for specific, legitimate purposes. For HR, this means carefully selecting the data required for background checks and avoiding collecting excessive information.
- Transparency and Consent: Employers must be transparent about the data they collect and the purpose of its processing. When used as the legal basis, consent must be freely given, specific, informed, and unambiguous. This is particularly important in the case of background checks, where sensitive data such as criminal records may be involved.
- Data Subject Rights: Employees have the right to access, rectify, and erase their personal data, among other rights. HR departments must have processes in place to facilitate these requests promptly. Failure to comply with these rights can result in significant penalties under GDPR.
- Data Protection Impact Assessments (DPIAs): For high-risk processing activities, such as large-scale background screening, GDPR requires the conduct of a DPIA. This assessment helps identify potential privacy risks and implement measures to mitigate them.
- Data Breach Notification: In the event of a data breach involving personal data, HR departments must notify the supervisory authority within 72 hours and inform the affected individuals if the breach poses a high risk to their rights and freedoms.
Practical Steps for GDPR Compliance In Background Screening
HR professionals should map out the data they collect, store, and process. Understanding the flow of data within the organization helps identify potential compliance gaps and areas that need strengthening.
Contracts with background screening providers should be reviewed and updated to include GDPR-compliant clauses. This ensures that data processors are also adhering to GDPR requirements.
HR staff must regularly receive training on GDPR and data protection. They should be aware of the importance of data privacy, the rights of data subjects, and the procedures for handling personal data.
Protecting personal data with robust security measures is critical. This includes encryption, access controls, and regular security audits to prevent unauthorized access and data breaches.
Under GDPR, organizations involved in the large-scale processing of personal data must appoint a data protection office (DPO). The DPO acts as an independent advisor, ensuring that the organization complies with GDPR and addressing any data protection concerns.
Compliance + Integrity = Background Screening Success
GDPR has set a new standard for data protection, affecting how HR departments handle background screening. By understanding the regulation and implementing best practices, HR professionals can ensure compliance while maintaining their employees’ trust and confidence.
Compliance with GDPR is not just about avoiding fines; it’s about fostering a culture of respect for privacy and making data protection a cornerstone of your HR practices.