2 Years After The GDPR Was Introduced - How Has It Affected The World of Payroll?

4th Aug 2020
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We’ve all opened emails in our inboxes and/or received phone calls from companies we’ve never heard of and wondered, “Where did these people get my contact information from?” The EU General Data Protection Regulation, or the GDPR, set out to address those concerns and enforce a set of guidelines that companies must follow in order to protect consumers and their data. But two years later, what has this meant for payroll administrators and software providers?

On May 25th 2018 the GDPR came into effect. Instantly we knew that these new regulations would heavily impact how payroll administrators work, but little did we know to what extent. In the two years since its introduction, the GDPR has meant that many of us have had to make significant changes to how we work in order to remain compliant. And this, in turn, has required that payroll software facilitate these changes and challenges that they created. 

The GDPR was introduced with the aim of regulating how companies collect, store and use data. Data security has long been a legal concern, especially for customers who are wary of how their data is being collected (often without their permission) and what it is being used for (again, often without their permission). The GDPR aimed to create a legal framework by which businesses could be held accountable and consumers could be protected. 

Since that time, all companies have been obliged to undertake a complete overhaul of their data policies and the systems that they use to gather, maintain and use data. And payroll departments have been front and centre of this process. Let’s take a look at some of the ways that payroll managers, accountants and bureaus have had to adapt and evolve in order to comply with these new regulations. 

How The GDPR Has Changed Payroll

One of the biggest elements of the GDPR is the fact that it requires that employees have access to whatever personal data their employer keeps on them. This is important for payroll providers because, if an employee requests to see their personal data, the provider must comply. Different payroll software packages have responded to this in different ways. At BrightPay, we’ve developed an employee self-service app as part of our BrightPay Connect add-on. Through the app, employees can view their data and change things like their phone number or postal address. This ensures that employers or bureaus are not withholding data from employees. 

The GDPR has also meant that payslips must be distributed more securely as these contain employee data such as National Insurance numbers, bank details and other personal information. BrightPay has made this easier than ever for payroll administrators, whether it's in-house or outsourced payroll. With the payroll software, password-protected payslips can be emailed to employees or sent directly to their smartphone or tablet via the Connect employee app. This means replacing old paper-based printing and distribution with fully encrypted distribution and secure cloud storage.

Book A Free Demo Today

If you’d like to learn more about how BrightPay protects your business and ensures compliance with the GDPR, then why not book a free demo with a member of our team today? Not only will they be able to answer your questions, they’ll also be able to walk you through the various ways that you can get the most out of the payroll software and streamline your business.