Employee Data Privacy

Hungary - Employee Consent

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Do I have to obtain employees' consent in order to collect their personal data?

The processing of any personal data may impose obligations to the individuals the data is related to, the data subjects. Some jurisdictions only recognize processing personal data as lawful if the data subject has provided express consent. Other jurisdictions require a legal obligation to process the data and may not require consent. The processing of HR personal data has raised questions and court decisions in a few countries, and interpretations may vary based on data privacy and labor law requirements.  


The concept of employee consent has been increasingly criticized because there is doubt as to whether consent can be given freely in the subordinate employee/employer relationship. There are more prescriptive requirements for obtaining consent under the General Data Protection Regulation, including the ability to withdraw consent at any time.  


The legitimate interest of employers can sometimes be invoked as a legal ground for processing personal data, but only if the processing is strictly necessary for a legitimate purpose and the processing complies with the principles of proportionality and subsidiarity. A proportionality test should be conducted in order to consider whether all data collected is truly necessary, and measures must be taken to keep personal data processing limited to the minimum necessary.


Clear communications should be provided to employees, informing them how their personal data is being processed. Where possible, such as in the event of monitoring technologies, employees should be given the option to prevent their data from being captured. Where employees are expected to use online applications which process personal data, they should consider enabling employees to designate certain private spaces to which the employer may not gain access under any circumstances, such as a private mail or document folder.


Hungarian Labour Code

scott-webb-199458Under the Hungarian Labour Code, there are additional rules and regulations relating to processing personal employee data:

  • Employers can only request personal employee data if that data is necessary to establish, perform, or terminate employment. It can also be requested when necessary to litigate a claim relating to the employment relationship;
  • Works Council and Trade Unions are permitted to request personal data in order to exercise their rights, as outlined in the Labour Code;
  • Employers must seek the opinion of the Works Council 15 days in advance of implementing new data processing measures or policies which would affect a large group of employees (note that trade unions may initiate consultations on the data processing measures);
  • Employers can require the presentation of personal documents (ID, address card, diploma, etc.) but cannot make copies of those documents;
  • Biometric data can only be processed when necessary to protect life/limb/health or significant interests that are protected by law (ex., safeguarding nuclear materials);
  • Employers can only request an employee’s criminal record if specifically required under statute or, if the employer can prove a legitimate interest and has set up the rules for processing criminal record data in writing prior to the request.


HR Best Practices: As consent on its own might not be enough to justify lawful processing of employee personal data, other processes should be documented and implemented. Consider legitimate requirements, such as processing bank account numbers for purposes of payment, or, processing personal data for health insurance. Commit to properly informing employees, documenting legal rationales for data collection and offering consent/correction/deletion where possible. 

UKG's HR Compliance Assist team relies on a network of internal and external compliance experts and lawyers to provide clients with best practices and recommendations on topics such as HR document retention, employee data privacy, and HR electronic records. HR Compliance Assist also provides local compliance monitoring and alert services in select countries where UKG's customers have employees. HR Compliance Assist is a service exclusively available to UKG customers.

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