GDPR: the workplace equivalent of flossing.
Nobody loves doing it, but ignore it long enough and you’ll regret it.
As a reminder, the General Data Protection Regulation (GDPR) is a UK and EU law that covers how organisations collect, store, and use personal data. It gives individuals more control over their information and requires businesses to handle the data transparently, securely, and lawfully. In practice, that means following strict rules around data access, retention, and consent.
If you handle employee data – and that could mean anything from a pay slip to a sick note – GDPR applies to you. And non-compliance can lead to hefty fines, reputational damage, and a loss of employee trust. Ugh, no thanks.
None of us want the fallout that comes with not adhering to GDPR HR compliance – but not all of us are compliance experts either.
And that, our friends, is exactly why we’ve written this blog post. Coming up: what you’re responsible for, and how to handle employee data securely.
The TL;DR? Look after GDPR like you do your teeth. Prioritise care and consistency, and you’ll avoid expensive problems later. Simple.
What is employment data according to GDPR?
First things first: what does employment data mean in a GDPR context?
Let’s break it down. Employment data refers to any personal information a business collects or stores about its employees. This could look like:
- Basic personal details: name, address, date of birth, contact info
- Employment history: CVs, references, qualifications, right-to-work checks
- Contractual data: salary, job title, working hours, benefits
- Performance records: appraisals, disciplinary actions, absence notes
- Sensitive data: health information, diversity data, trade union membership
- Criminal offence data: DBS checks, if relevant to the role
Sensitive data is especially important. There are stricter rules and regulations around why and how you handle it, because of the risks of individual harm should it be released.
Got it? Good.
Risks of non-compliance
Sorry to put a downer on things, but the risks of failing to comply with GDPR are pretty heavy. And non-compliance doesn’t always come from something huge like being hacked – it could be as simple as leaving a sensitive document in your downloads folder, or sharing performance data with the wrong manager.
Let’s take a closer look at the consequences:
- Financial: fines can reach up to £17.5 million, or 4% of annual global turnover (whichever is higher). Plus, you might lose business if you can’t prove you take good care of data.
- Reputational: a data breach or investigation can seriously harm your employer brand, which is bad for hiring and bad for team morale.
- Operational: investigations and legal action take time and resources from other initiatives.
- Employee relations: think about it. How would you feel if you knew your sensitive data had been accidentally shared or mishandled? Exactly.
Want a real-life example? In 2024, Irish debt purchaser Cabot Ireland suffered a cyberattack that compromised 394,000 data files holding sensitive information like medical data. The kicker? Some of these files included people who had left the company over a decade ago.
Keeping hold of personal data for longer than you should do violates GDPR – and makes you more exposed to a breach. At the time of writing, the attack is still under investigation. Ouch.
What employers and HR teams are responsible for
Ok, so we definitely want to avoid non-compliance. That’s a no-brainer – but how?
Let’s start by taking a look at what you and your business are responsible for:
Lawful basis for data processing
This basically means you must have a clear and legal reason to collect, use, or store an employee’s personal data.
For example, under the new Economic Crime and Corporate Transparency Act (ECCTA), employers might have to undertake enhanced due diligence on directors or key hires. That would form a valid lawful basis under GDPR.
Transparency and information obligations
When you’re collecting an employee’s personal data, you must clearly tell them what you’re collecting, why, how it’ll be used, stored, and shared, how long you’ll keep it, and what their rights are over it.
Think of it this way: if you didn’t understand what personal data your employer was collecting or why they were doing it, you’d find it hard to trust your employer. And (spoiler) a lack of trust is not what we want.
Important note: this might be obvious at the point of hiring, but it doesn’t stop there. UK employment law changes *a lot*. To stay compliant, you might need to make changes to how you look after the data you already have as the law develops.
Need help? Here’s a rundown of the upcoming 2025 UK employment law changes.
Data minimisation and purpose limitation
Here’s a thought: you might be collecting more data than you need, and keeping it longer than you should. GDPR isn’t necessarily about gathering more to be safe - it’s about collecting less to stay compliant.
Now, let’s break down the two principles that guide this mindset:
- Data minimisation: this means you should only collect the data that’s necessary for your stated purpose. No extras!
- Purpose limitation: this means you should only use the data for the specific, explicit purpose the individual knows about. In other words, at a later date you can’t think “Oh great, I already have that on file – I’ll just reuse it”. Sorry.
If figuring all this out sounds like a headache waiting to happen, there are codes of practice to help you.
Let’s take an example. You work in a regulated sector like finance and need to run a background check. You’re not sure which data is essential or how long to keep it under GDPR compliance.
Enter: BS7858, a UK code of practice designed to help you. Happy days!
How to ensure data security and what you need to do
Ok, we know how to gather and handle personal data – but how do we keep it safe?
There are two types of data security measures:
- Technical measures are tools and systems that physically protect the data: think encryption, access controls, two-factor authentication, and data backups, to name a few.
- Organisational measures are policies and practices that guide your people: think data protection policies, staff training, onboarding and offboarding, and audits.
Helpful tip: that clever HR chatbot or auto-screener might be learning more than you realise – and that might not be compliant. Make sure your AI tools are as privacy-savvy as your people with this guide to choosing and implementing AI.
HR GDPR compliance and employee rights
Next up: what happens if an employee queries about their data?
No need to panic – employees have core data rights under GDPR, and as an employer, you’re legally required to understand and respond to them. So, without further ado:
- Right to access (or subject access request): this one’s pretty easy. Say an employee asks to see a copy of their performance reviews. They might want to know where it came from, what it’s used for, who it’s shared with, and how long you’ll keep it. You need to provide this info in one month.
- Right to rectification: if an employee spots a mistake (like an out-of-date job title or an old address), they can ask you to correct it. You need to do this promptly.
- Right to erasure: employees can ask for you to delete their personal data, if it’s not needed any more or wasn’t processed lawfully.
- Right to object: if an employee isn’t a fan of a certain type of data processing, they can object to it. If this happens, you need to stop processing the data until you can prove there’s a legitimate reason to continue.
If a request is submitted, it’ll usually be HR who carries out the response – though you may need help from line managers, and/or IT, Legal, and Compliance teams to make sure it’s done properly.
Processes vary business to business, but you’ll want to acknowledge and clarify the request to start. Next, you’ll gather the data and check you’re not about to send anything you shouldn’t, before delivering it to the employee. Log this process every time you undertake it - it keeps you and your team compliant.
As for timing? You have to respond to a request within a month. If it’s complex or one of several, you can ask for up to two additional months to process it.
It’s worth noting here that the upcoming Digital Information and Smart Data Bill proposes changes that could impact how you handle Data Subject Access Requests (DSARs). One to keep an eye on – and update your processes if necessary, too.
Data retention and deletion
You’re only allowed to keep hold of employee data for as long as you need it. While the employee is working for you, you’ll need to keep hold of various data for things like payroll and benefits.
After they leave the company (sob), you can generally keep certain pieces of data for legal, contractual, or regulatory reasons, but it must be justifiable.
Create a data retention policy. It’ll save you time – and protect you later. You’ll want to:
- Categorise your data
- Define retention periods for each
- Explain the reason for keeping it
- Plan for secure deletion
Plus, keep it accessible and review it regularly. You don’t want your hard work to go to waste.
Best practices for HR GDPR compliance
Before we finish up, let’s run through some best practices.
Work for a public authority or body? Carry out regular and systematic monitoring of individuals at scale? Process special category data or criminal offence data on a large scale?
If you answered yes to any of these, you might need to appoint a Data Protection Officer (or DPO). This role must have expert knowledge of data protection law and practice and can be internal or external.
Run regular audits (as we’ve mentioned, the law changes a lot), and update contracts and policies where necessary. Plus, record everything to keep you and your business extra-safe.
Combine these with a bit of care and common sense, and you’ll do just fine.
After all, GDPR is really about building a culture that takes care of your employees. And that’s what you’re an expert in, right?
Managing GDPR compliance across hiring, screening, and employee data handling can feel like a juggling act. Zinc keeps your checks fast, compliant, and out of the headlines – so you can stop worrying about what’s lurking in your downloads folder. Book a demo now to learn more.
