Legal Compliance for HR in Data Privacy in the UK

In the UK, HR departments must comply with strict data privacy regulations, primarily governed by the General Data Protection Regulation (GDPR) and the Data Protection Act 2018 (DPA 2018).

These laws state how organisations should collect, store, use, and protect personal data, including that of employees. We will discuss the key areas of legal compliance that the most successful HR managers focus on and look at factors they consider with regard to data privacy.

Factors to consider regarding data privacy

We will begin by looking at individual areas HR managers should consider to ensure data privacy compliance.

Lawful basis for data processing

HR teams must establish a lawful basis for collecting and processing employee data. Under GDPR, common lawful bases include consent, contractual necessity, and legal obligation. For example, processing payroll data might be considered a contractual necessity, while health and safety data could be processed under a legal obligation​

For most HR purposes, relying on these contractual necessities or legal obligations is often more appropriate than seeking consent, as employees may feel pressured to consent, undermining the voluntary nature of consent required by GDPR.

Data minimisation and purpose limitation

HR should only collect and retain personal data that is relevant and necessary for specific purposes. Specific purposes may include payroll, benefits, or performance reviews. If new purposes arise, HR must either ensure these are compatible with the original purpose or seek additional legal justification​

Employee rights and data subject access requests (DSARs)

Under GDPR, employees have a range of rights regarding their personal data, including the right to access, rectification, erasure, restriction of processing, and data portability. The most efficient HR managers ensure their teams have clear processes for handling Data Subject Access Requests (DSARs). They also ensure employees know their rights through clear and regular communications.

Response to data breaches

Protecting employee data from unauthorised access, accidental loss, or theft is critical. Therefore, top HR managers ensure their teams implement robust security measures, including encryption, secure storage, and access controls. They also recognise that they are required to report a data breach to the Information Commissioner’s Office (ICO) within 72 hours.

Data privacy training and awareness

To ensure compliance within the organisation, efficient HR managers ensure employees receive regular data privacy training. This especially applies to employees who handle sensitive employee data. Training covers GDPR principles, data handling practices, breach response procedures, and how to maintain privacy compliance.

Documentation and accountability

GDPR emphasises accountability, requiring organisations to document their data processing activities and demonstrate compliance. HR professionals understand this necessitates the maintenance of Records of Processing Activities (RoPA). These records detail how employee data is collected, stored, and shared.

Today’s HR managers play a pivotal role in data privacy compliance, which is crucial for safeguarding employee information, building trust, and avoiding legal penalties. They focus on lawful processing, transparency, data security, and employee rights to help their organisations meet UK privacy standards and foster workplace awareness and compliance.