Non Disclosure Agreement Gdpr

In today`s digital age, protecting sensitive information has become more important than ever. Many businesses rely on non-disclosure agreements (NDAs) to keep their trade secrets, customer data, and other confidential information safe. However, with the new General Data Protection Regulation (GDPR) in effect, businesses must ensure that their NDAs comply with the data protection requirements set forth in the regulation.

GDPR and NDAs: What You Need to Know

The GDPR is a European Union regulation that went into effect in May 2018. Its purpose is to protect the privacy and data of EU citizens and residents by regulating how businesses collect, store, and process personal data. The regulation applies not only to businesses based in the EU but also to any business that processes the personal data of EU citizens or residents.

This means that if your company uses NDAs to protect sensitive information, you must ensure that your NDAs comply with the GDPR. Failure to do so could lead to hefty fines and reputational damage.

What to Include in Your NDA to Comply with GDPR

To ensure that your NDA complies with GDPR, there are a few things you need to include:

1. Clear and Specific Language: Your NDA should clearly state what information is considered confidential and how it should be handled. This will ensure that all parties understand the scope of the agreement.

2. Lawful Basis for Data Processing: The GDPR requires that businesses have a lawful basis for processing personal data. Your NDA should specify the lawful basis for why the information is being collected and processed. This can include legitimate interest, contractual obligation, or consent from the individual.

3. Data Protection Obligations: The GDPR imposes specific obligations on data controllers and processors. Your NDA should outline these obligations and ensure that both parties understand their responsibilities.

4. Data Subject Rights: The GDPR also grants certain rights to individuals whose personal data is being processed. Your NDA should outline these rights and specify how they will be fulfilled.

Why Complying with GDPR is Important

Complying with GDPR is crucial for protecting personal data and avoiding costly fines. The regulation imposes fines of up to 4% of a company`s global annual revenue or €20 million (whichever is greater) for non-compliance. Additionally, failing to comply with GDPR can lead to reputational damage and loss of trust from customers.

In conclusion, if your company uses NDAs to protect sensitive information, it`s important to ensure that they comply with GDPR. By including clear and specific language, specifying the lawful basis for data processing, outlining data protection obligations, and outlining data subject rights, your company can protect personal data and avoid costly fines.