In recent years, data privacy and security have remained top priorities for businesses, especially in the wake of evolving regulations and the increased enforcement of the General Data Protection Regulation (GDPR). Recruitment agencies and businesses across all industries must continue to refine their data processing practices to stay compliant. To help you navigate GDPR, we’ve compiled answers to several frequently asked questions.
What Is GDPR?
The General Data Protection Regulation (GDPR) (Regulation (EU) 2016/679) is a pivotal data protection law that is designed to standardise data protection across EU member states and strengthen individuals’ rights regarding their personal data.
According to the EU’s GDPR framework, the legislation aims to “harmonise” data privacy laws across all EU nations while providing individuals with greater control over their data.
With the ever-growing reliance on digital platforms, AI and cloud-based services, GDPR remains critical in safeguarding data from misuse and unauthorised access. Businesses must continuously audit and adjust the way they process data to remain compliant with ongoing legal updates and technological advancements. No matter if there is an internal data controller, or a general awareness within a team, ensuring that any sensitive data, contact details or any data subject to GDPR is handled correctly is paramount.
When Did GDPR Come into Force?
GDPR officially came into effect on May 25, 2018, requiring all EU member states and businesses handling EU citizens’ data to comply. There was a transition period that allowed businesses time to align their internal processes with the regulation, but now, compliance is no longer optional, it’s a fundamental business requirement.
Who Enforces GDPR?
Each EU member state appoints a Supervisory Authority (SA) responsible for GDPR enforcement. These authorities operate under the European Data Protection Board (EDPB) and have the power to:
- Conduct audits and investigations on data processing
- Issue warnings and reprimands
- Impose bans on data processing
- Suspend international data transfers
- Levy substantial administrative fines
The enforcement of GDPR varies across member states, with some, like Germany and Spain, historically adopting stricter approaches than others. However, enforcement trends indicate that there is increasing scrutiny across all regions.
Does GDPR Replace the Data Protection Act (DPA)?
Not exactly. In the UK, GDPR and the Data Protection Act (DPA) work together.
When the EU’s GDPR came into force in 2018, it replaced the older Data Protection Directive (DPD). At the same time, the UK introduced the Data Protection Act 2018 (DPA 2018) to sit alongside GDPR and cover areas where EU laws allow member states some flexibility, such as exemptions, law enforcement processing and the powers of the Information Commissioner’s Office.
Following Brexit, the UK retained GDPR in domestic law, now known as the UK GDPR. This version mirrors most of the EU GDPR’s principles but has been tailored to the UK’s legal framework. Together, the UK GDPR and the DPA 2018 form the backbone of the UK’s data protection principles.
For recruitment agencies, this means:
- If you’re processing candidate data on UK citizens, you must comply with UK GDPR + DPA 2018.
- If you’re also handling data on EU citizens, you may need to restrict processing to comply with the EU GDPR as well.
What Are the Maximum GDPR Fines in 2025?
Under UK GDPR regulations, the Information Commissioner’s Office (ICO) has the power to impose substantial fines on organisations that fail to comply with data protection laws.
The maximum penalties are:
- Up to £17.5 million or 4% of annual global turnover (whichever is greater) for the most serious infringements, such as breaching data subjects’ rights or failing to have a lawful basis for processing data.
- Up to £8.7 million or 2% of annual global turnover (whichever is greater) for lesser infringements of data processing agreements, such as record-keeping failures or inadequate security measures.
While fines remain a powerful enforcement tool, the ICO stresses that penalties are not intended to be the first resort. Instead, the regulator often starts with warnings, reprimands or enforcement notices. However, in cases of severe or repeated non-compliance, the ICO has shown a willingness to issue significant financial penalties.
Are GDPR Fines Insurable?
In most cases, GDPR fines are not insurable. Insurers generally exclude coverage for regulatory penalties, as allowing businesses to claim against them would undermine the way that the law is supposed to act as a deterrent.
That said, many cyber insurance policies do provide coverage for:
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Legal defence costs
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Investigation and audit support
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Breach notification obligations
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Remediation expenses following a cyber incident
Recruitment agencies should therefore review their policies carefully to ensure they have the right protection in place for the indirect costs of a data breach, even if fines themselves are excluded. This might mean performing data protection impact assessments or looking at specific ways to store candidate data in a way which is compliant.
How Does GDPR Affect Recruitment Agencies?
Recruitment agencies can handle some of the most sensitive personal data for recruitment purposes, from CVs and interview notes to salary expectations and right-to-work documentation. GDPR directly impacts the way agencies operate, requiring them to embed compliance into their daily processes. Key considerations include:
- Consent and Transparency – Agencies must clearly explain how candidate data will be used, obtain explicit consent where required and update privacy policies to reflect current practices in how they are protecting candidate data.
- Data Minimisation – Only collect data relevant to the recruitment process. Holding unnecessary candidate personal data or outdated data increases compliance risks.
- Candidate Rights – Agencies must be prepared to respond quickly to Subject Access Requests (SARs) and provide candidates with the ability to update or delete data when appropriate.
- Technology and Security – With the rise of AI-driven recruitment tools and cloud-based systems, agencies must ensure their applicant tracking systems (ATS) and recruitment software are GDPR-compliant, with encryption and a secure talent database.
- International Recruitment – Cross-border placements often require transferring data outside the EU/UK. Agencies must use approved safeguards, such as Standard Contractual Clauses (SCCs), to remain compliant.
This is where Eclipse Recruitment Software supports agencies in meeting their GDPR obligations. With built-in compliance features, data security protocols and automated candidate consent tracking, Eclipse helps consultants manage sensitive information responsibly. By centralising candidate records and ensuring secure handling of personal data, recruitment agencies can reduce risk, maintain transparency and build trust with candidates.
Candidate Consent and the “Right to Be Forgotten”
The Right to Erasure, commonly known as the “Right to Be Forgotten,” allows individuals to request the deletion of their personal data when there is no longer a legitimate reason for its processing. Businesses must comply with such requests unless legal or regulatory obligations require them to retain the data.
Common scenarios where erasure may apply include:
- The data is no longer necessary for its original purpose.
- The individual withdraws consent.
- The individual objects to processing, and there is no overriding legitimate interest.
- The data was unlawfully obtained.
Ensure GDPR Compliance
GDPR compliance is not a one-time task, it requires ongoing vigilance, regular data audits and continuous updates to policies and processes. Recruitment agencies in particular, must keep data security and transparency at the core of their operations.
By leveraging GDPR-compliant tools such as Eclipse, training consultants and staying informed on legal changes, agencies can confidently navigate compliance requirements while maintaining efficiency and delivering a first-class candidate experience.
