Article
6 min read
Author
Jemima Owen-Jones
Published
November 29, 2023
Last Update
July 09, 2024
Table of Contents
Be aware of jurisdictional differences
Effectively manage data transfer across borders
Uphold robust security measures
Deel’s solution to GDPR compliance
GDPR compliance is crucial for global teams to protect personal data and maintain trust among international stakeholders and customers. Since the regulation was officially applied in 2018, compliance has become compulsory. Failing to comply can cost a company up to 4% of worldwide annual revenue or €20 million (whichever amount is higher).
But what is GDPR, how does it work, and what do global teams need to comply?
GDPR, or the general data protection regulation, is a comprehensive data privacy and security regulation in the European Union (EU). It is intended to safeguard personal data and provide control over how organizations collect and process information. It applies to organizations in Europe and foreign entities that engage with EU citizens.
Global companies have a legal obligation to uphold the following key requirements:
HR and legal professionals representing global companies often grapple with challenges when navigating GDPR compliance. For example, jurisdictional differences, managing cross-border data transfers, obtaining explicit consent, and ensuring robust data security measures.
Deel helps thousands of companies expand globally with speed and flexibility while ensuring GDPR compliance and avoiding costly non-compliance mistakes.
Global companies work with employees and clients across borders, introducing the challenge of understanding different jurisdictions. Consider that over 100 versions of GDPRs have emerged in jurisdictions worldwide, adding to the complex and high-cost compliance challenge for international businesses.
When workers are located in various jurisdictions, legal differences have implications for global teams, such as the following:
The legal and reputational risks of non-compliance demand particular attention. The most immediate concern for non-compliance is hefty fines, which can reach €20 million depending on the severity of non-compliance. Even minor infringements can cost up to €10 million when violating articles governing controllers and processors, certification bodies, and monitoring bodies.
Regular investigations and audits can be initiated by various means, including data protection authorities, supervisory authorities, individuals, and self-reporting. For example, affected individuals may take legal action hoping to get compensation for privacy breaches, which costs the company money while introducing the risk of reputational damage as news of GDPR violations erodes trust among customers, partners, and the public.
Deel empowers global companies to hire internationally and manage a global team under strict GDPR policies and practices integrated into the platform.
Deel ensures a legal basis for processing personal data, adhering to the seven principles of data processing as outlined by article 5 of the GDPR:
To help companies further, Deel offers a comprehensive and globally relevant data processing addendum to help meet the requirements for GDPR (and beyond). The agreement regulates several aspects of the data processing of two parties, including data transfer safeguards and the purposes of processing.
The GDPR imposes strict restrictions on transferring personal data outside the EU, demanding careful consideration and compliance. Organizations must employ specific legal mechanisms and ensure personal data protection when conducting international business or hiring internationally.
Companies have options of legal mechanisms available to facilitate the GDPR-compliant transfer of personal data outside of the EU, such as the following:
The choice of the legal mechanism depends on the specific circumstances of the data transfer and the countries involved, so organizations should carefully assess their data transfer needs and consult legal experts to determine the best option.
Learn more: How to Navigate Data Protection and Privacy Across Borders.
Transferring personal data outside the EU without a valid legal reason opens the organization to significant legal risks. For example, hefty GDPR fines imposed by data protection authorities may cripple the enterprise financially. There is also the risk of affected individuals taking legal action against the company, seeking financial compensation for privacy breaches or damages incurred by unauthorized data transfers.
Data protection authorities have the ability to investigate and enforce GDPR compliance. An investigation can lead to reputational damage, regulatory sanctions, and a loss of trust from customers, partners, and the public.
Deel offers a convenient solution to manage data transfer compliantly, incorporating legal mechanisms to ensure that organizations follow the necessary procedure for legal data movement.
By ensuring that the appropriate safeguards are in place for personal data transfer out of the EU, Deel aligns organizations with GDPR requirements.
The platform is designed to protect personal data privacy. It supports the exercise of data subject rights, including the rights to access, rectify, erase, and restrict processing personal data, the right to data portability, and the right to object to processing.
The GDPR strives to protect personal data against unauthorized access, use, disclosure, alteration, or destruction. Robust security measures and proactive data protection strategies are required by organizations to align with this requirement.
Security measures should be implemented comprehensively and in conjunction with each other to create a strong defense against data breaches and maintain privacy according to data privacy laws in Europe (and beyond).
Common security measures to protect personal data include:
Failing to implement adequate security measures can lead to repercussions for both the enterprise and the individual.
For example, data breaches due to inadequate safeguards can expose sensitive personal information about an individual and lead to financial losses or harm. Enterprises may receive regulatory penalties that impact the organization’s financial health and receive a public record of non-compliance, tarnishing the business’s reputation.
Reputational damage stemming from data breaches also erodes trust among customers, partners, and the public, potentially leading to a loss of business, decreased shareholder confidence, and long-lasting harm to an organization’s brand.
As a platform, Deel employs technical and organizational measures for data processing, including encryption, two-factor authentication, ISO 27001 certification, and SOC 2 compliance.
Deel also incorporates a rigid data breach procedure, which ensures a quick response and notification in the event of a data breach, ensuring that data transfer is intentional and by the book.
These features, combined with Deel’s legal expertise in global GDPR compliance, demonstrate a commitment to ensuring all personal data is protected and processed compliantly.
All of Deel’s internal staff undergo regular mandatory data privacy training.
Expanding a global company demands precision regarding legal requirements and GDPR compliance. Navigating jurisdictional differences, managing cross-border data transfers, and implementing reliable security measures are all details that global teams must prioritize.
As a global third-party data processor, Deel operates by example and upholds GDPR requirements. For instance, Deel complies with the obligations of data controllers and processors as outlined in the data processing addendums and implements transparent data processing according to GDPR transparency obligations so that any data you process through Deel is upheld to the same robust standards.
Learn more about Deel’s global GDPR compliance and how it can help you uphold data protection and privacy, or book 30 minutes with a product expert to get started.
Solutions
© Copyright 2024. All Rights Reserved.