GDPR requires one for each data processor, but a DPA also shows businesses that the processor is capable and understands the legal requirements for handling your data. What is a data processing agreement?ĭata processing agreements are a type of legal contract that covers the rights of everyone involved, as well as the expectations on how they will handle data.
In addition to their service agreements and contracts, they would also need a DPA to protect the privacy of their employees and applicants.
For example, a services company (the controller) may use an HR and payroll management company (the processor) to handle part of their business. The data processing agreement (DPA) is how data controllers and data processors ensure that all parties are meeting the data privacy expectations that the European Commission has established. If your company has customers in the EU or processes the data of individuals in the EU, you need to have GDPR compliance in mind. From data storage to customer management, third party data processors are a nearly unavoidable part of any organization. While there may still be the occasional team that handles everything themselves, most software products are made up of a variety of services from different vendors.
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