EU Safe Harbor Judgment Brings Uncertainty to US Global Mobility and Payroll Operations

The Court of Justice of the European Union (CJEU) handed down a decision this past October determining the level of US Safe Harbor data privacy protection scheme offered by companies subscribing to it no longer meets the strict requirements of the EU Data Protection Directive. The impact the CJEU judgment has had on the global mobility and payroll industry cannot be understated.

Prior to the CJEU decision, the European Commission recognized US Safe Harbor and assured European businesses that personal data transferred to Safe Harbor affiliated companies in the US satisfied the legal requirement to adequately protect personal data transferred outside the EU. The CJEU judgment effectively removes that assurance.

The CJEU judgment was brought about mainly by complaints from EU members regarding the absence of any legislative or judicial body being behind US Safe Harbor. The lack of governance and oversight resulted in an absence of any real judicial recourse or legal ramifications being in place to punish non-compliant U.S. companies.

Currently, an effort to create a “Safe Harbor 2.0” is underway, with the responsibility for doing so placed squarely on the United States. Just when and how this new and improved Safe Harbor scheme will be enacted is a point of great debate and uncertainty in the global mobility industry. As for now, the EU has officially rejected Safe Harbor and negotiations to find a replacement continue.

Fortunately the CJEU decision regarding US Safe Harbor has had no impact on GS3‘s business and customers. We bring an entirely different value to the Global Mobility and Payroll industry. Through our role as a Registered Data Controller and legal responsibility, we ensure global processes (not just EU) are based on, and 100% compliant to, the requirements of the EU Data Protection Directive.

GS3 stands ready to answer your questions and assist you in bringing your company’s global mobility and payroll operations into EU compliance.

Give us a call today or CLICK HERE to learn how we can bring the GS3 advantage to your business.

2018-08-09T14:58:38+00:00