As the world becomes increasingly digital and reliant on technology, the importance of protecting personal data has become a top priority for businesses. The General Data Protection Regulation (GDPR) and other privacy laws require companies to implement measures to ensure the security and integrity of personal data. One of the ways to achieve this is through a data processor agreement.
A data processor is a third-party organization that processes personal data on behalf of a data controller. This could be a cloud service provider, payroll processor, or any other organization that handles personal data. As per GDPR, a data processor agreement is necessary whenever a data processor is used by a data controller.
A data processor agreement is a legally binding document that outlines the terms and conditions of the relationship between the data processor and the data controller. It lays out the responsibilities of the data processor in terms of data protection and security, and outlines the measures that will be put in place to ensure that data is protected.
Here is an example of a typical data processor agreement:
1. Definitions
— The terms defined in this agreement shall have the same meaning as those given in the GDPR.
2. Scope and Purpose
— This agreement shall apply to the processing of personal data by the data processor on behalf of the data controller.
3. Obligations of the Data Processor
— The data processor shall only process personal data on the instruction of the data controller.
— The data processor shall implement appropriate technical and organizational measures to ensure the security of personal data.
— The data processor shall ensure that any subcontractors it engages are bound by the same data protection obligations as set out in this agreement.
4. Obligations of the Data Controller
— The data controller shall provide clear and specific instructions to the data processor for the processing of personal data.
— The data controller shall ensure that it has the necessary rights to provide personal data to the data processor for processing.
— The data controller shall be responsible for ensuring that the processing of personal data is lawful.
5. Security Measures
— The data processor shall implement appropriate technical and organizational measures to ensure the security of personal data.
— The data processor shall notify the data controller without undue delay if it becomes aware of a security breach.
6. Data Subject Rights
— The data processor shall assist the data controller in fulfilling its obligations with regard to data subject rights.
— The data processor shall provide the necessary cooperation for the data controller to carry out data protection impact assessments and consult with the supervisory authority.
7. Liability and Indemnification
— The data processor shall be liable for any damage caused by the processing of personal data in breach of the GDPR.
— The data processor shall indemnify the data controller for any claims arising out of a breach of this agreement.
8. Term and Termination
— This agreement shall remain in force until the end of the processing period.
— Either party may terminate this agreement if the other breaches its obligations under this agreement.
By having a data processor agreement in place, businesses can ensure that personal data is protected and that they are fulfilling their legal obligations. It is important to work with legal and data protection experts to ensure that the agreement is tailored to the specific needs of the business and compliant with applicable laws and regulations.