Data Protection Violation Penalty: Awarded Compensation for Breach

Data Protection Woes: German Worker Wins Damages for Unauthorized Data Sharing

Data Protection Violation Result in Potential Financial Compensation - Data Protection Violation Penalty: Awarded Compensation for Breach

Ready to learn about a recent twist in data protection laws? This time, it's about an employee claiming damages after their employer shared personal information beyond what was agreed upon. Let's dive into the details.

In a landmark ruling, the Federal Labor Court in Erfurt, Germany, recognized that employees have the right to claim damages when their employer breaches data protection regulations. This decision was made in a case involving the cloud-based software "Workday" for human resources management (8 AZR 209/21). The plaintiff, an employee from Baden-Württemberg, was awarded €200, in addition to immaterial damages due to the loss of control over their personal information.

The employer in question had planned to implement Workday as a uniform HR information system across the company in 2017. In the process, the plaintiff's data, including more sensitive information than initially agreed, was transferred to the parent company. Data such as salary information, date of birth, private address, and tax ID were transmitted, beyond the agreed-upon details like the employee's date of entry, business phone number, and email address.

Initially, the plaintiff demanded €3,000 in damages, arguing that the employer had exceeded the limits of the works agreement, as per the General Data Protection Regulation. Lower courts in Baden-Württemberg rejected the claim. However, the Federal Labor Court believed the plaintiff had a case, at least to some extent. The court referred the case to the European Court of Justice (ECJ).

In this groundbreaking ruling, the Federal Labor Court of Germany has underscored the importance of employers safeguarding personal employee data and the potential consequences of breaching data protection laws. While the court didn't issue a specific ruling in the Baden-Württemberg locale (as it applies nationwide), general principles regarding data protection breaches and damages claims can be outlined:

1. Legal Grounds: The General Data Protection Regulation (GDPR) serves as the legal basis for claims associated with data protection breaches. It grants individuals the right to compensation for both material and non-material damages resulting from a breach (Article 82 GDPR).
2. Employer Responsibility: Employers can be held liable for data protection breaches if they fail to implement adequate measures to protect personal data, which includes securing employee data.
3. Lawsuits: While specific rulings may not be easily accessible, the Federal Labor Court frequently addresses employment law issues, including data protection. However, specific data protection breach cases might be more commonly handled under the GDPR in civil courts.
4. Damages Claim Process:
5. Material Damages: Claims for material damages, such as financial losses, can be made if the employer fails to protect personal data, leading to financial harm.
6. Non-Material Damages: Claims for non-material damages, such as distress or reputational damage, can also be made if the breach results in psychological harm or other non-material impacts.
7. Proof of Harm: To claim damages, the affected employee must prove that the employer breached data protection laws, that harm occurred, and there is a clear link between the breach and the harm.
8. Compensation: The amount of compensation varies based on the severity of the breach, the nature of the harm, and whether the employer made an effort to mitigate the breach.

So, there you have it! This case encourages businesses to prioritize data protection and minimizing unauthorized data exposure. Keep in mind that this article offers a general understanding of the situation. For specific details about a particular case or legal decision, it's best to consult a legal professional or access relevant court documents. Stay informed, and you'll be better equipped to navigate the ever-changing data protection landscape!

1. The employee from Baden-Württemberg was awarded damages by the Federal Labor Court in Erfurt, Germany, for unauthorized data sharing, with an additional €200 for immaterial damages due to loss of control over their personal information.
2. The ruling recognized that employees can claim damages when their employer breaches data protection regulations, as demonstrated in the case involving the cloud-based software "Workday" for human resources management (8 AZR 209/21).
3. In this case, the plaintiff's data, including more sensitive information than initially agreed, was transmitted beyond the agreed-upon details, including salary information, date of birth, private address, and tax ID.
4. The General Data Protection Regulation (GDPR) serves as the legal basis for claims associated with data protection breaches, granting individuals the right to compensation for both material and non-material damages resulting from a breach (Article 82 GDPR).

Read also: