Understanding Data Processor Obligations Under the UK GDPR
The UK General Data Protection Regulation (UK GDPR) sets out strict rules on how personal data must be handled. While much of the focus is placed on data controllers, data processors— entities that process personal data on behalf of controllers—also have significant legal obligations.
Non-compliance can lead to severe penalties, making it crucial for businesses to understand their duties.
This article outlines the core responsibilities of data processors under UK GDPR and provides practical steps to ensure compliance.
Who Is a Data Processor?
A data processor is any organisation that processes personal data on behalf of a data controller. This is a very broad category an includes: cloud service providers, payroll companies, marketing agencies, and IT service providers that handle personal information as part of their services.
Unlike controllers, processors do not determine the purpose or means of data processing but must still follow strict rules under UK GDPR.
Key Obligations of Data Processors Under UK GDPR
1. Only Process Data Under Controller Instructions
Processors must only handle personal data in line with the controller’s documented instructions. Any unauthorised processing may result in penalties and liability for both parties.
2. Implement Appropriate Security Measures
Processors must ensure the confidentiality, integrity, and availability of personal data by implementing appropriate technical and organisational security measures. This includes:
Data encryption
Access controls
Regular security audits
Secure data disposal practices
Failure to take reasonable steps to protect data can result in hefty fines.
3. Maintain Records of Processing Activities
Processors handling data regularly must keep detailed records of processing activities, including:
Categories of processing activities
Types of personal data processed
Security measures in place
Transfers of data outside the UK
This documentation is essential for demonstrating compliance and may be requested by the Information Commissioner’s Office (ICO).
4. Notify Data Controllers of Data Breaches
If a personal data breach occurs, processors must notify the controller without undue delay so that appropriate action can be taken. Controllers are responsible for reporting serious breaches to the ICO, but processors play a key role in timely detection and response.
5. Enter Into a Data Processing Agreement (DPA)
A Data Processing Agreement (DPA) is a legally required contract between a controller and processor. It must outline:
The nature and purpose of processing
The duration of processing
The types of personal data involved
Security obligations
Responsibilities in case of data breaches
Processors must ensure these agreements are in place before handling any data.
6. Do Not Engage Sub-Processors Without Permission
If a processor intends to outsource any processing activities, they must first obtain explicit written consent from the data controller. Any sub-processor must also comply with UK GDPR requirements.
7. Assist the Controller with Compliance Obligations
Processors must support controllers in fulfilling their GDPR obligations, including:
Assisting with Data Subject Access Requests (DSARs)
Helping with Data Protection Impact Assessments (DPIAs)
Enabling compliance with security obligations
Ignoring these requirements can result in liability for both parties.
Consequences of Non-Compliance
Failure to meet processor obligations under UK GDPR can lead to severe penalties, including:
Fines of up to £8.7 million or 2% of annual global turnover, whichever is higher
Reputational damage and loss of business
Potential legal action from data controllers or data subjects
How Data Processors Can Stay Compliant
To ensure compliance with UK GDPR, data processors should:
Conduct regular GDPR training for employees
Perform security audits and update safeguards accordingly
Keep detailed processing activity records
Review and update Data Processing Agreements with controllers
Establish incident response procedures for data breaches
By proactively addressing these obligations, data processors can mitigate risks and maintain compliance.
Final Thoughts
The UK GDPR places significant responsibilities on data processors, making compliance a top priority. By understanding and fulfilling these obligations—such as maintaining security, keeping records, and assisting controllers—processors can protect personal data while avoiding legal and financial consequences.
If your organization processes personal data on behalf of others, ensure you have the right policies, contracts, and security measures in place. Need expert guidance on UK GDPR compliance? Contact Hemisphere Consultants today.