AVG audit checklists for HR departments

GDPR audit checklists for HR departments

The Dutch Data Protection Authority issued fines of up to €830,000 in 2023 to organizations that inadequately protected employee privacy. For HR departments, this is no longer an abstract risk, but a concrete threat that requires structural attention. At the same time, HR teams process sensitive information daily: from medical data and social security numbers to payroll administration and performance reviews. It’s precisely this combination of high risk and intensive data processing that makes a thorough GDPR audit indispensable.

Why HR departments are particularly vulnerable

HR departments occupy a unique position. They not only manage large volumes of personal data, but also special categories of personal data that fall under stricter protection. Think of health data related to sick leave, criminal records when screening new employees, or trade union membership. Additionally, many HR teams work with external parties such as payroll administrators, recruitment agencies, and occupational health physicians. Every external party with access to personnel data poses a potential risk if agreements aren’t properly documented. Practice shows that many data breaches result from human error: an incorrectly sent email with salary information, an unsecured USB stick with personnel files, or an outdated HR system without adequate access security.

The seven principles of GDPR for HR

The GDPR has seven core principles that form the basis of every audit. For HR departments, these principles translate into concrete requirements that apply daily. The first principle is lawfulness. HR may only process personal data with a valid legal basis: a legal obligation, performance of the employment contract, or in specific cases, employee consent. For example, you may only request a social security number if this is legally required for payroll administration. Purpose limitation means you may only use data for the purpose for which you collected it. You can’t simply retain data from a recruitment process for future vacancies, unless the applicant explicitly gave consent for this. Data minimization requires restraint: only collect what is strictly necessary. Do you routinely ask for a copy of a driver’s license from every new employee, while this is only relevant for positions with driving duties? Then you’re violating this principle. The fourth principle is accuracy. Personnel files must be current and correct. Outdated address information or non-updated job descriptions can lead to problems. Storage limitation means you don’t retain data longer than necessary. For applicants you don’t hire, a retention period of four weeks usually applies. For personnel files of former employees, many organizations maintain seven years due to tax obligations, but medical data often must be destroyed sooner. Integrity and confidentiality require technical and organizational measures: access security, encryption, and clear agreements about who may view which data. The final principle is accountability. You must be able to demonstrate that you comply with all requirements. Documentation is essential here.

The processing register as foundation

Every GDPR audit starts with the processing register. This overview must contain all processing activities that HR performs: from recruitment and selection to exit interviews. For each processing activity, you document which data you collect, why you do so, who has access, how long you retain the data, and with which external parties you share the data. This sounds administratively heavy, but in practice you prevent ambiguity and risks. A good processing register also helps when responding to employee requests. When someone asks which data you process about them, you can quickly provide a complete overview. Many HR departments underestimate how many different processing activities they perform. In addition to the obvious administration around contracts and salaries, also consider camera surveillance, access security with badges, monitoring of email or internet, and the use of HR software in which behavioral data is recorded.

Confidentiality obligations and access management

While HR doesn’t have an absolute duty of confidentiality like doctors or lawyers, it does have an extensive duty of care for confidential information. The GDPR requires organizations to implement appropriate technical and organizational measures. In practice, this means you must strictly determine who has access to which data. Does the recruiter need access to salary data of current employees? Can the HR advisor focused on learning and development see who is on long-term sick leave? Often not. Therefore, implement role-based access in your HR systems. Ensure employees only have access to the data they need for their work. Log who views which data when, so you can trace what happened in case of an incident. Don’t forget physical security either. Are personnel files lying open on desks? Can employees walk into HR spaces where sensitive information is visible? Are confidential documents securely destroyed or do they end up in the regular waste bin?

External parties and processing agreements

Most organizations work with external HR service providers. Every party that processes personal data on behalf of your organization is a processor in GDPR terms. You must conclude a processing agreement with every processor. This agreement stipulates what the processor may and may not do with the data, which security measures apply, how long data is retained, and what happens upon termination of the collaboration. Many HR departments do have processing agreements, but often these aren’t current or are incomplete. Regularly check whether your external parties comply with the agreements. Ask about their security measures, certifications, and how they handle data breaches. A payroll administrator who stores your data on unsecured servers poses a direct risk to your organization. Also be careful with international service providers. Data transfer outside the EU requires additional safeguards. The European Commission’s standard contractual clauses provide a solution for this, but must be correctly implemented.

Employee rights in practice

Employees have various rights under the GDPR: access, rectification, erasure, restriction of processing, and data portability. HR departments must handle these requests within one month. Access requests occur regularly, often in conflict situations or upon termination. Ensure your process for this is in order. Which data do you provide, in what format, and how do you verify the requester’s identity? The right to erasure is complex in an employment relationship. Employees can’t simply demand that all data be deleted, because you have legal retention obligations. But after the end of the employment relationship and the legal retention period, you must indeed delete data. Data portability mainly applies to recruitment and selection. Applicants can request their data in a structured, commonly used format so they can reuse it. Practice these processes regularly. Simulate an access request and check whether you can deliver a complete overview within the set deadline. This prevents stress and errors when a real request comes in.

Preventing and reporting data breaches

A data breach is any situation where personal data unintentionally becomes accessible to unauthorized parties, is lost, or is altered. An email with salary data to the wrong recipient is a data breach. A stolen laptop with personnel files is too. Prevention starts with awareness. Train your HR team regularly on handling personal data securely. Use encryption for sensitive files. Don’t send confidential information via unsecured email, but use secure sharing solutions. Yet data breaches can happen. What’s crucial is having a clear process to respond. Who must be informed? When must you report to the Data Protection Authority? Which affected individuals must you warn? For data breaches with probable high risks to the privacy of data subjects, you must report to the DPA within 72 hours. Think of leaked medical data or social security numbers. Document every data breach, even if you don’t have to report it. This demonstrates that you take the situation seriously and helps prevent recurrence.

Conducting the GDPR audit in practice

A thorough GDPR audit for HR requires a systematic approach. Start by updating your processing register. Review all HR processes: from recruitment to exit, from absence management to performance management. Then check your technical measures. Are all HR systems adequately secured? Are backups made? Is there a disaster recovery plan? Who has which access rights and are these still current? Assess your organizational measures. Are employees trained? Are there clear procedures for handling privacy-sensitive situations? Do employees know what to do in case of a data breach? Review all processing agreements. Are they complete and current? Do your external parties meet the agreed security requirements? Test your processes for handling data subject requests. Can you handle a complete access request within one month? Is it clear who is responsible for which steps? Document all findings and create an improvement plan with concrete actions, responsible parties, and deadlines. An audit isn’t a one-time exercise, but part of continuous improvement.

From compliance to strategic HR policy

GDPR compliance is more than checking off a checklist. It’s about a culture where privacy and careful handling of data are self-evident. Organizations that arrange this well notice that employee trust increases. Modern HR platforms like Deepler help safeguard privacy by design. Data is only collected when necessary, access is strictly regulated, and reports are designed so that individual employees aren’t identifiable unless necessary. By integrating privacy and data protection into your HR processes, you not only prevent fines. You also create a safe environment where employees feel comfortable giving honest feedback and sharing sensitive information. Start today with a thorough inventory of your current situation. Use the principles and checkpoints from this article to update your processing register, test your security measures, and train your team. The investment in good GDPR compliance pays off in avoided risks and increased trust.