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UK business owners must comply with the UK General Data Protection Regulation (UK GDPR), which sets strict rules for handling personal data. When you hire a freelancer as an independent contractor or consultant, you must determine their role in data processing activities. If a freelancer acts as a data processor, various UK GDPR rules will apply. This article explores whether freelancers are data processors and the key steps businesses should take when working with freelancers to comply with UK GDPR rules.
When Are Freelancers Data Processors?
As a business, you may work with freelancers to handle particular types of work. Freelancers are not your employees but rather independent contractors or self-employed consultants.
Understanding whether freelancers are data processors is crucial to UK GDPR compliance.
To determine if a freelancer acts as a data processor under the UK GDPR, it is essential to understand what a data processor is and how it differs from other roles. A data processor is an independent business or third party that processes personal data on behalf of a data controller according to their specific instructions.
Freelancers are not employees and they operate independently. Therefore, you must assess whether they will handle personal data during their role. For instance, if you grant a freelancer access to your client list, staff information, or other personal data to perform their tasks only and for no other purpose, they will likely act as a data processor. Freelancers will act as data processors when they handle personal data strictly according to your instructions, with no other freedom to make decisions about using your personal data.
Some examples include the following:
- suppose you hire a freelancer to provide IT support and access staff personal data only to perform maintenance or troubleshoot issues for your team. In that case, they will likely act as a data processor; or
- if a freelance marketer sends out email campaigns using a contact list you provide and follows specific data processing guidelines when using your contact list, they are likely a processor.
In these cases, the freelancer does not decide the purposes or means of data processing but follows your explicit instructions as the data controller.
What Are Your Responsibilities When Working With Processors?
When you hire freelancers who act as data processors, you must set clear guidelines and use contracts to ensure compliance with the UK GDPR.
Here are some important obligations to consider:
Data Processing Agreement
You should put a Data Processing Agreement (DPA) in place with freelancers who are data processors. This agreement should set out the scope, nature, and purpose of data processing and confidentiality and security requirements. The DPA will ensure both parties understand their roles and responsibilities regarding data protection. You could also include data processing clauses within your freelancer or consultancy agreement to ensure compliance.
Due Diligence
Before you engage a freelancer, you should seek to assess their data protection practices to ensure they meet UK GDPR standards.
Your business should thoroughly evaluate its data protection policies and procedures. This due diligence will help determine whether the freelancer can protect personal data and comply with UK GDPR requirements. You should also regularly audit the freelancer’s data processing activities to maintain compliance by promptly identifying and addressing potential issues.
Clear Instructions, Policies and Training
When freelancers act as data processors, your business should give them detailed instructions on handling personal data. Clear instructions will help ensure the freelancer processes data in line with your organisation’s data protection policies and UK GDPR requirements. You should ensure freelancers fully understand and follow your data protection policies and procedures. Your business can do so by sharing your policies with them and providing training and resources to help them understand and implement them effectively.
You may also offer training sessions to freelancers so they understand their data protection obligations. Training programs should cover UK GDPR basics, specific requirements relevant to the freelancer’s role, and your organisation’s data protection policies.
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Can Freelancers Be Data Controllers?
Commonly, freelancers act as data processors. Freelancers can act as data controllers when determining the purposes and means of processing personal data. In these cases, the freelancer would have autonomy over processing decisions and assume the role of a data controller.
This factsheet sets out how your business can become GDPR compliant.
These scenarios can be complicated, and you should seek legal advice if you are unsure whether a freelancer acts as a data controller and the obligations arising from this.
Key Takeaways
Identifying whether freelancers are data processors is crucial for UK GDPR compliance. A range of legal obligations will apply if a freelancer acts as a data processor. For instance, your business should enter into a DPA with the freelancer to ensure they protect any personal data you share during their role. If you need advice on whether your freelancer acts as a data processor, you should seek legal advice to ensure UK GDPR compliance.
LegalVision’s experienced Data, Privacy and IT lawyers can assist as part of our LegalVision membership if you need advice on data protection compliance. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
1. Are Freelancers Data Processors?
Freelancers can be data processors if they process personal data on behalf of a business according to its instructions. This depends on the freelancer’s role and whether they will have access to any personal information.
2. Do I Need a Data Processing Agreement with Freelancers?
Yes, under UK GDPR, a Data Processing Agreement setting out the scope and terms of data processing is mandatory if a freelancer acts as a data processor. You can also include data processing clauses within the contract with the freelancer.
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