If you handle client information, you likely act as a data processor. This is a key legal role with specific responsibilities under data protection laws.
What is Data processor?
A data processor is any person or entity that processes personal data on behalf of another party, known as the data controller. The controller determines the 'why' and 'how' of data use, while you, the processor, follow their instructions to perform the actual handling, storage, or analysis of the data.
Why is this important?
This distinction is crucial for legal compliance, especially under regulations like the GDPR. If you process client data, you have contractual obligations to protect it. Misunderstanding your role can lead to significant legal and financial risks for your freelance business.
How does it work?
Your client, the data controller, gives you a lawful purpose and instructions for handling data. You then process that data accordingly, for example, by entering it into a system, analyzing it for a report, or storing it securely. Your relationship is governed by a data processing agreement (DPA).
Pros and cons
The main benefit is clarity; a DPA defines your duties and limits liability. However, it adds administrative work and requires you to implement strong security measures. You must also be prepared for audits and report any data breaches promptly to your client.
Conclusion
Understanding your role as a data processor is non-negotiable in today's digital freelance landscape. Always clarify data handling responsibilities with clients and use a DPA. This protects both you and the individuals whose data you are trusted with.
Ready to freelance?
Download the HFS Freelancers app and discover flexible shifts in your area. Or explore more terms in our knowledge base.
