Personal data must be stored in the EU!
The secure storage of personal data is not a marginal issue for companies in Germany and Austria, but a legal obligation. Especially in the area of HR software - from Time tracking about Travel expense report up to the Personnel management - decides the Server location in the EU legal certainty, trust and sustainability.
Data protection as a must: What the GDPR for companies in Germany and Austria means
The General Data Protection Regulation (GDPR)) has regulated the handling of personal data throughout the EU. It stipulates that companies may only collect and store data if there is a clear legal basis for doing so and the highest security measures are guaranteed.
For companies in Germany and Austria this means in concrete terms:
- Data minimization: Only the data required for the respective purpose may be collected.
- Transparency obligation: Employees must know at all times what data is being collected and processed.
- Right to erasure: Employees can request that their data be deleted as soon as the purpose has been fulfilled.
- Safety requirements: Data must be protected technically and organizationally in such a way that unauthorized access is impossible.
Violations are not only subject to high penalties, but can also permanently damage the company's reputation.
Focus on personal data - why HR systems in particular require maximum security
Particularly critical are HR systemsbecause they offer a wide range of personal data bundle. While customer data often "only" contains contact information, personnel data does:
- Wage and salary data
- Tax and social security information
- Sick notes, certificates and health data
- Travel details and Expense reports
- Attendance and Working time data
This information falls under the category of "particularly sensitive data". Loss or misuse could not only result in financial losses, but also lead to massive trust issues among employees.
Server location Europe: The advantages for companies
A Data center EU offers clear advantages:
- Legal certainty: The data is subject to the strict regulations of the GDPR.
- Reliability: European providers are subject to regular audits and certifications.
- Transparency: You can track where and how your data is stored at any time.
- Technical excellence: Many EU data centers are ISO 27001 certified and offer state-of-the-art security mechanisms.
- Shorter latencies: The physical location has a positive effect on the speed of Time recording APPs and cloud-based HR software from.
What can happen when Perdata relating to individuals is stored outside the EU
The server location outside the EU can have serious consequences. Providers with servers in the USA are particularly in the spotlight. Due to the Cloud Act US authorities can access data - even if it is stored on European servers, provided the provider is a US company.
Other risks:
- Less legal protection: Employees cannot fully assert their rights under the GDPR.
- Higher risk of data leaks: Other jurisdictions have less stringent requirements for encryption and backups.
- Compliance problems: During audits, companies may have difficulties proving their data protection measures.
Legal basis: DSGVO compliant work without risk
The GDPR only permits data transfers to third countries if:
- an adequacy decision has been issued by the EU Commission,
- suitable guarantees such as standard contractual clauses exist or
- explicit consent has been obtained from the data subjects.
Although the Trans-Atlantic Data Privacy Framework has been in place for the USA since 2023, it is controversial and does not offer absolute legal certainty. Companies that want to be on the safe side therefore consciously rely on providers with Server location EU.
Technical safety: Data center in the EU as guarantor for personal data
In addition to the legal requirements, technical measures must also be taken into account. A professional Data center EU offers:
- redundant systems for high reliability,
- regular backups,
- Access controls with multi-factor authentication,
- encrypted data transmissions,
- secured emergency plans.
These Standards are easier for providers in Germany and Austria to implement and prove.
Cloud provider in comparison: Why the Server location can be an exclusion criterion
Many companies initially choose software solutions based on function and price. But the Server location should be at least as important as the features. Especially with Time tracking, Personnel management software and Travel expense report are providers with Servers in Austria or Germany a clear advantage.
A Cloud providerstoring its data in the EU saves you time-consuming legal checks, minimizes risks and increases employee confidence.
Practical tips: How to recognize data protection compliant Software for HR processes
To make the right decision, you should ask the following questions:
- Where is the data center located?
- Is the provider certified to ISO 27001?
- Is there an ADV contract according to GDPR?
- Is data stored and transmitted in encrypted form?
- Does the solution support modern tools such as a Time recording APP or Cloud-based time tracking?
Checklist for software selection:
| Test criterion | Why it is important |
|---|---|
| Server location EU | Only by fully applying the GDPR possible |
| ADV contract | Regulates duties and responsibilities |
| ISO certification | Proves technical safety level |
| Transparency | Provider should clearly communicate where data is located |
| Integration | Simple connection to existing HR systems |
Safe, efficient and future-oriented
The storage of personal data in the EU is not a detail, but a basic prerequisite for safe and modern Personnel management. Companies in Germany and Austria that rely on Server location EU not only protect themselves legally, but also strengthen the trust of their employees.
With a data protection compliant Time trackinga safe Travel expense report and a flexible Personnel management software you not only save time, but also protect your most valuable data.
FAQ - Frequently asked questions about data protection and server location
Why is the server location so important for HR software?
Because only with a Data center EU the GDPR applies without restriction and the highest security standards must be met.
What risks arise when personal data is stored outside the EU?
Possible access by authorities, less legal protection, problems with audits and increased risks of data leaks.
Is it mandatory for companies in Germany and Austria to store personal data in the EU?
Yes, in practical terms, yes. Legally, the GDPR only allows data transfers to third countries under very strict conditions. For most companies, a provider with EU servers is therefore the only safe choice.
Which data is considered particularly sensitive in the HR sector?
Salary information, sick notes, time sheets, absence data and personal master data.
How do I recognize data protection-compliant software?
Pay attention to the Server location EUcertifications (e.g. ISO 27001), transparent communication and the option of concluding a commissioned data processing agreement.
