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Data Breach in EOR Cases: Challenge in enforceability

One of the key concerns of organisations while outsourcing work is data confidentiality. Any misuse of data...

One of the key concerns of organisations while outsourcing work is data confidentiality. Any misuse of data- whether it is the internal data of the organisation or that with sensitive client information-by employees has the potential of causing immense damage to not only the business but also the credibility. Needless to say, this almost always translates to quantifiable financial loss to the organisation. 

In a lot of cases, the misuse of data goes unredressed as the victim organisation finds the cost of pursuing legal remedies unattractive.  In a case where it has outsourced certain functions and the breach has been perpetrated at the end of the contractor/external service provider (e.g., an employer-of-record (EOR) which hired the errant employee), that too in a foreign jurisdiction, things become even more complicated. In all such cases, the external partner’s cooperation becomes sine qua non. Further, the outsourcing partner’s ground presence and local practical knowledge become imperative.

Therefore, it is very important to have in place, at the very inception of the relationship (with the outsourcing partner), proper documentation in place which would ensure that the outsourcing partner would render the required cooperation to the client, in pursuit of the best possible legal remedy. To this end, it must always be ensured that the outsourced employees are always legally bound (as part of their employment agreements or under non-disclosure agreements) to maintain confidentiality, as also have as part of the service agreement with the outsourcing partner adequate covenants to require the said partner’s cooperation in case any legal proceedings are required be prosecuted. 

Futueor endeavours to always have its ear to the ground and provide the necessary information and cooperation so its clients’ interests are always protected.