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How to Manage Employees’ Data Under Singapore’s Personal Data Protection Act (PDPA)

Singapore enacted the Personal Data Protection Act (the “PDPA“) in 2012, which came into force in different phases; the provisions concerning data protection were enforced on 2nd July 2014. The PDPA applies to any organization that deals with the collection, use, and/or disclosure of personal data (stored in electronic and non-electronic forms) from individuals in Singapore, whether the organization is located in Singapore or not. Recruitment companies, employment agencies, head-hunters, and other similar organizations are also subject to the Data Protection Provisions of the PDPA.

Collecting Personal Data of Job Applicants and Employees:

As per Sections 13 and 14 of the PDPA, an organization must obtain the consent of the individual before collecting, using, or disclosing his/her personal data for a purpose. However, in the employment context, an employer can process its employees’ data without consent if:

 

  1. Such processing is reasonable for managing or terminating the employment relationship. This includes using an employee’s bank details for payroll processing, administering staff benefits, and monitoring their use of company-issued devices; or
  2. The processing is for evaluative purposes, which include determining the suitability of an individual for employment, a promotion, or termination of employment.

 

When an individual voluntarily provides his personal data to an organization in the form of a job application, he may be deemed to consent to the organization collecting, using, and disclosing the personal data for the purpose of assessing his job application.

If the individual is subsequently employed, it would be reasonable for the employer to continue to use the personal data provided by the individual/employee in the job application form for the purpose of managing the employment relationship with the individual.

If the employer wishes to use the personal data for purposes for which consent may not be deemed or to which there is no applicable exception under the PDPA, the employer must then inform the employee of those purposes and obtain his/her consent.

Social Networking Sources and Data Collection:

The PDPA does not require organizations or recruitment agencies to obtain the consent of the individual when collecting or using personal data that is publicly available. Where the personal data is not publicly available but is voluntarily made available by the individual on a job-search portal for being contacted for prospective job opportunities, the individual may be deemed to have consented to the collection, use, and disclosure of his personal data for such purpose. So it would be right to state that where social networking sources (e.g., Facebook, Twitter, or Linkedin) are publicly available, the PDPA does not prohibit organizations from collecting personal data about the individual without his consent.

Notification and Purpose Limitation Obligations:

As per Sections 18 and 20 of the PDPA, an employer must notify the job applicant or employee of the purpose(s) for which the employer intends to collect, use, or disclose his/her personal data on or before such collection, use, or disclosure, and may only collect, use, and disclose personal data for such purposes. An employer also needs to inform employees of the purpose for managing and terminating the employment relationship. This can be done by way of drafting relevant provisions in the employment contracts.

However, this obligation won’t apply if:

  1. The individual is deemed to have consented to the collection, use, or disclosure, as the case may be under the PDPA; or
  2. The employer collects, uses, or discloses the personal data without the consent of the individual in accordance with section 17 of the PDPA (that is, in the circumstances like managing and terminating the employment relationship, or processing for the evaluative purposes.

 

Section 18 of the PDPA requires organizations to only use collected data for the purpose it was intended for. Employers must refrain from asking applicants for personal data that is not relevant to the job. Also, an employer has an obligation to make a reasonable effort to ensure that the personal data collected is accurate and complete.

Retention Limitation Obligation:

Section 25 allows organizations to only retain information that is necessary to store or if there is a valid business or legal purpose of storing the personal data. After an organization has decided which job applicant to hire, the personal data that the organization had collected from the other job applicants should only be kept for as long as it is necessary for business or legal purposes.

Data Protection Obligations and Data Protection Impact Assessment:

As per Section 24 of the PDPA, employers must protect the personal data of employees in their possession or under their control in order to prevent unauthorized access, collection, use, disclosure, copying, modification, disposal, or similar risks.
The HRM team of an organization should consider adopting security arrangements that fit the nature of the personal data held by their organization and the possible harm that might result from a security breach.

As good practice, organizations should conduct risk assessments (e.g., Data Protection Impact Assessments) to assess the risks to the personal data they possess or control to determine appropriate security to control or mitigate these risks.

Data Breach Management:

As per Section 26C of the PDPA, once an employer has credible grounds to believe that a data breach has occurred (whether through self-discovery, alert from the public, or notification by your data intermediary), then the employer is required to take reasonable and expeditious steps to assess whether the data breach is notifiable under the PDPA.

And where the employer assesses that a data breach is a notifiable data breach, the employer must notify the PDPC as soon as it is practicable. On or after notifying the PDPC, the employer must also notify each affected employee affected by a notifiable data breach in any manner that is reasonable in the circumstances.

Data Sharing with Vendors and Cross-Border Transfers

While sharing an employee’s personal data with external third parties and vendors such as HR services, security contractors, or medical insurance services, the employer must assess their privacy practices and their third-party/vendor’s compliance with the PDPA’ ‘s requirements.

Under Section 26 of the PDPA, an employer who transfers personal data of employees out of Singapore is required to take the following appropriate steps to:

  • Ensure that it complies with the obligations under the PDPA;
  • Ensure that the recipient is bound by legally enforceable obligations to provide the personal data a standard of protection that is comparable to the PDPA. Employers may consider using binding contracts for inter-corporate transfers and binding corporate rules for intra-corporate transfers.
  • Ensure that the employee whose personal data is to be transferred gives consent to such transfer

Rights of employees:

Under sections 16, 21, and 22, current and former employees are given rights over their personal data which can be exercised, and the employer is required to fulfill these requests in a stipulated time frame. These rights include:

  1. Employees may withdraw their consent to the collection, use, or disclosure of their personal data by the employer at any time.
  2. Employees have the right to request access to their personal data. An employee may request to access any CCTV footage that they appear in.
  3. Employees have the right to request the correction of their personal data.

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