What Do I Need to Know About Self-Employed Contractors and UK GDPR Compliance?

When your business needs support, self-employed contractors can help bring flexibility, specialised skills, and cost-efficiency. However, you must follow the UK General Data Protection Regulation (UK GDPR) rules when your business engages contractors. This article explores vital points your company should know about UK GDPR compliance considerations when hiring self-employed contractors.

What Is Considered Personal Data Under UK GDPR?

The UK GDPR is a crucial law designed to protect individual’s data and give them more control over the use of personal information. Businesses must ensure that any personal data they and their staff handle, including that processed by self-employed contractors, complies with these strict rules. The UK GDPR applies to data controllers (organisations who determine the purpose and means of processing personal data) and data processors (organisations who process data on behalf of controllers). 

Personal data refers to any information that can identify an individual, either directly or indirectly. This includes names, email addresses, phone numbers, and IP addresses. If contractors have access to any such personal data of your business (for instance, your staff or client personal information), you must comply with the UK GDPR when sharing such data with them. 

What Should Your Business Consider When Hiring Contractors?

Hiring self-employed contractors brings flexibility and specialised skills to your business. However, such contractors often handle personal data, making it essential for your business to comply with UK GDPR. Your company and its contractors must meet data protection law rules and standards to avoid negative consequences of non-compliance, such as significant fines and reputational damage.

Here are some critical considerations for your business when hiring contractors who will process personal data as part of their role: 

Are Contractors Processors or Controllers?

If you, as a controller, give the personal data of your customers, clients, and staff to a third-party contractor, various UK GDPR requirements will apply. 

You should assess whether your contractors act as data processors or controllers. Contractors acting under your authority and strict instructions when processing your data will likely qualify as processors. If they are processors, you must include specific data processing clauses in their contracts.

Your contracts will need to detail what personal data the contractor will process, the groups of individuals the data relates to, the duration of processing, and the nature of the processing. Your contracts should also outline the contractor’s data protection obligations, including maintaining confidentiality, implementing security measures, and notifying you of any data breaches. These agreements should clearly define responsibilities to avoid any ambiguity and ensure that the contractor safeguards personal data.

How Should You Train Contractors on Data Security and Policies?

You can train your contractors on UK GDPR requirements to help them safeguard personal data. This will help you ensure they understand how to handle personal data securely and recognise potential data breaches. 

You can provide them with your company’s data protection policies and highlight the importance of confidentiality.  

Should You Verify Contractors’ Security Measures?

You should ensure your contractors have adequate security measures to protect personal data. This includes technical measures such as encryption and secure storage, as well as organisational measures like access controls and regular audits. You should regularly review and approve any changes to these measures. 

You might also need to conduct a Data Protection Impact Assessment (DPIA) for high-risk data processing activities. This assessment helps identify and mitigate risks to personal data. If your contractors are involved in high-risk processing activities, you may need to complete a DPIA. 

What if the Contractor is a Data Controller?

Determining whether a self-employed contractor is a data processor within the meaning of the UK GDPR rules is fact-specific. 

The fact that a self-employed contractor may provide services to an organisation does not necessarily mean that they are a data processor as they may be a data controller. Whether the self-employed contractor is a data controller or data processor will depend on their particular role, responsibilities, and autonomy in the processing. Professional service providers (for instance, accountants) will generally be data controllers.

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Different obligations will apply if a contractor acts as a data controller, and you should take specific legal advice on the requirements should you require support with understanding them. 

What are Your Compliance Obligations?

Your business should also consider its compliance obligations when working with contractors. Your business will likely act as a data controller when collecting and processing personal data about individual contractors. For instance, you may collect their personal information to start your business relationship and pay them. If you collect personal data from contractors, you should provide them with a staff privacy notice. 

You should ensure contractors respect data subjects’ rights under the UK GDPR, including their right to access their personal data. 

Key Takeaways

Working with self-employed contractors can give rise to several UK GDPR compliance requirements despite these individuals being not employees. Where you are working with third-party contractors who are data processors, you will need to implement robust contracts with data processing clauses and regularly monitor compliance to ensure they handle your data under UK GDPR rules. If you are concerned that a contractor may be a data controller, you should seek legal advice on your obligations when engaging a contractor on this basis. 

If you need help with UK GDPR compliance, our experienced data, privacy, and IT lawyers can assist as part of our LegalVision membership. 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. What is the UK GDPR?

The UK GDPR law aims to protect personal data and give individuals control over its use. As a business, you must comply with its rules when processing personal data.

2. Are Self-Employed Contractors Processors?

To determine if self-employed contractors are processors, you should assess their role and how they process personal data. Contractors acting under your authority and following your rules likely qualify as processors. If so, you must include specific data processing clauses in their contracts.