GDPR in Europe: 11 Steps for International Businesses to Stay Compliant

Both European and non-European businesses who hire in the EU need to comply with the GDPR, but the legislation is fraught with nuances that could lead to compliance problems with a single misstep. 

Understanding GDPR compliance when hiring in Europe is crucial to ensure your business operates within the legal framework and maintains trust with employees and clients. This guide will provide an overview of GDPR compliance, who needs to follow it, and 11 steps international businesses should follow to remain compliant. 

What is GDPR Compliance?

The General Data Protection Regulation is a comprehensive data protection law that came into effect in May 2018. It was designed to protect and empower all EU citizens' privacy while harmonizing data privacy laws across Europe.

GDPR compliance means following a set of rules and principles that govern how personal data is collected, processed, stored, and transferred for all countries operating in the EU.

Key principles of GDPR include:

• Lawfulness, Fairness, and Transparency: Personal data must be processed lawfully, fairly, and transparently.

• Purpose Limitation: Data must be collected for specified, explicit, and legitimate purposes and not further processed in a manner incompatible with those purposes.

• Data Minimization: Data collected should be adequate, relevant, and limited to what is necessary in relation to the purposes for which they are processed.

• Accuracy: Personal data must be accurate and, when necessary, kept up to date.

• Storage Limitation: Data should be kept in a form that permits identification of data subjects for no longer than is necessary.

• Integrity and Confidentiality: Data must be processed in a manner that ensures appropriate security, including protection against unauthorized or unlawful processing and against accidental loss, destruction, or damage.

• Accountability: The data processor whose responsibility it is to collect and store data must ensure they are accountable for proper data processing. 

Fines for GDPR Non-Compliance

Non-compliance with GDPR can result in severe fines and penalties. There are two tiers of administrative fines based on the severity of the infringement:

1. Up to €10 million or 2% of the annual global turnover (whichever is higher) for violations related to internal record-keeping, data protection impact assessments, and other compliance matters.

2. Up to €20 million or 4% of the annual global turnover (whichever is higher) for more serious violations, such as breaches of data subjects' rights, unlawful data transfers, and failure to obtain consent.

Who Needs to Follow GDPR Compliance?

GDPR applies to all organizations operating within the EU, as well as organizations outside the EU that offer goods or services to, or monitor the behavior of, EU data subjects. 

This means that even if your business is based outside of Europe, you must comply with GDPR if you:

• Offer Goods or Services in the EU: If your business markets goods or services to EU residents, you are subject to GDPR.

• Monitor EU Residents' Behavior: If you track or monitor the online behavior of EU residents, for example through cookies or other tracking technologies, you must comply with GDPR.

• Employ EU Residents: If you have employees in the EU, their personal data must be handled in accordance with GDPR.

Another simpler option for international businesses is to work with a global employer of record provider like Justworks. Justworks EOR can help you avoid the headache of GDPR compliance by managing the complex regulatory requirements on your behalf, ensuring your business adheres to all data protection laws seamlessly.

11 Steps to Comply with GDPR

1. Appoint a Data Protection Officer (DPO)

Appoint a DPO to oversee GDPR compliance. The DPO will be responsible for monitoring compliance, informing and advising the organization and its employees, and acting as a contact point for data subjects and the supervisory authority.

2. Determine If You Need an EU Representative

If your business is based outside the EU but processes the personal data of EU residents, you’ll usually need to appoint an EU representative based in the country you process employee data. This representative acts as a point of contact for data subjects and employers within the EU, ensuring that your business meets its GDPR obligations effectively.

3. Conduct Data Protection Impact Assessments (DPIAs)

Conduct DPIAs to identify and mitigate risks associated with data processing activities. DPIAs are essential for understanding how data processing may impact the privacy of individuals and for implementing measures to mitigate identified risks.

4. Maintain Records of Processing Activities

Keep detailed records of all data processing activities. This includes documenting what data is collected, how it is used, who has access to it, and how it is secured. These records are crucial for demonstrating compliance with GDPR requirements.

5. Implement Data Protection by Design and by Default

Incorporate data protection principles into the design of new systems and processes. Ensure that data protection is considered at every stage of development and that privacy-friendly default settings are applied.

6. Obtain and Manage Consent

Ensure that you obtain explicit and informed consent from data subjects before processing their personal data. Consent must be freely given, specific, informed, and unambiguous. Provide clear information about how data will be used and allow individuals to withdraw their consent easily.

7. Enhance Data Security Measure 

Implement robust security measures to protect personal data. This includes encryption, access controls, regular security assessments, and training for employees on data protection practices.

8. Enable Data Subject Rights

Ensure that data subjects can easily exercise their rights under GDPR, including the right to access their data, the right to rectification, the right to erasure (the "right to be forgotten"), the right to restrict processing, and the right to data portability.

9. Establish Data Breach Response Procedures

Develop and implement procedures for detecting, reporting, and responding to data breaches. Under GDPR, data breaches must be reported to the relevant supervisory authority within 72 hours of becoming aware of the breach.

10. Review and Update Privacy Policies

Regularly review and update your privacy policies to ensure they comply with GDPR requirements. Make sure your policies are clear, transparent, and accessible, providing comprehensive information about data processing activities.

11. Train Employees on GDPR Compliance

Provide regular training to employees on GDPR compliance and data protection best practices. Ensure that all staff understand their responsibilities and the importance of protecting personal data.

How Justworks EOR can help with GDPR Compliance

Navigating GDPR compliance for foreign businesses can be daunting, but partnering with an EOR provider like Justworks can simplify the process. An EOR can manage the complexities of data protection regulations, making sure your business adheres to all GDPR requirements seamlessly.  An EOR helps handle HR compliance abroad, allowing you to focus on growing your business in Europe with peace of mind. Want to learn more? Get started with Justworks today!