HR Tech companies process employee data that has stricter GDPR protections than customer data due to the employer-employee power imbalance, and enterprise buyers will scrutinize how you handle their employees’ information before signing.
Key takeaways
- Employee consent is generally not a reliable lawful basis under GDPR due to the employer-employee power imbalance
- AI used in recruitment and performance evaluation is classified as high-risk under the EU AI Act
- HR data requirements vary between EU member states, adding country-specific complexity
- You work directly with a senior DPO. Experience across 100+ companies including Amazon, Coinbase, and Robinhood.
You work directly with a senior DPO. Experience across 100+ companies including Amazon, Coinbase, and Robinhood. We understand the specific challenges of employee data at scale. Note: outsourced DPOs are also referred to as external DPO, virtual DPO, fractional DPO, or DPaaS.
Why HR Tech privacy is different
HR Tech companies process some of the most sensitive personal data there is: employee records, payroll data, performance reviews, health information, diversity data, background checks. Your enterprise customers have strict requirements about how their employees’ data is handled, and EU works councils add another layer of complexity.
The key difference from other tech verticals: employee data has additional protections under GDPR because of the power imbalance between employer and employee. Consent is generally not a reliable lawful basis for processing employee data because it’s hard to argue an employee can freely consent to their employer. This means you need alternative legal bases and more careful governance.
What we handle for HR Tech
- DPO appointment and notification to the supervisory authority
- Employee data privacy frameworks (GDPR requirements are stricter for employee data than customer data)
- Cross-border HR data transfers (EU employees, US payroll, global operations)
- Works council engagement and data protection agreements
- Vendor risk management for payroll processors, benefits providers, and recruitment platforms
- Enterprise deal support for clients with strict employee data requirements
- AI compliance for AI-powered recruitment, performance analytics, and workforce planning
- Data minimization and retention policies for employee records
- Background check and pre-employment screening compliance
Common HR Tech compliance scenarios
HRIS platforms processing employee data across multiple EU countries need country-specific compliance because employment data rules vary between member states.
Recruitment platforms using AI for screening or ranking candidates face high-risk AI classification under the EU AI Act plus GDPR automated decision-making requirements.
Payroll platforms transferring employee data between EU and US need robust transfer mechanisms plus alignment with local employment law.
Performance management tools collecting and analyzing employee behavioral data need careful legal basis assessment and transparency about profiling.
Regulations
GDPR (employee data provisions), UK GDPR, CCPA/CPRA and other US state privacy laws (Virginia, Colorado, Texas, and more, including employee-data provisions), local labor laws affecting data processing, EU AI Act (high-risk AI in employment), and cross-border transfer requirements across 30+ jurisdictions worldwide with local counsel support where required. These rules apply wherever your company is based, to any company serving people in the EU or UK, not only European companies.