Processing Agreement

Definition & Meaning:

A Processing Agreement is a legal document required when one party (the processor) processes personal data on behalf of another party (the controller).

This type of agreement is important in ensuring that the processing of personal data adheres to applicable data protection laws, such as the General Data Protection Regulation (GDPR) in the European Union.

The agreement outlines the specific responsibilities and obligations of the processor, including how to handle personal data, the purpose of processing, and the measures taken to protect the data.

For example, if you operate a website and use a third-party service to manage email marketing, you would need a Processing Agreement with that service to ensure they handle your subscribers’ data in compliance with privacy laws.

This document also specifies the rights of the data subjects (the individuals whose data is being processed), such as their right to access, correct, or delete their personal data.

It includes details on data transfer, especially if the data is moved across borders, ensuring such transfers comply with legal standards.

A key aspect of the Processing Agreement is the requirement for the processor to implement appropriate security measures to protect the personal data against unauthorized access, disclosure, alteration, and destruction.

This might involve encryption, regular security assessments, and incident response plans. In the event of a data breach, the agreement outlines the processor’s obligation to notify the controller without undue delay.

This allows the controller to take necessary steps, including informing the affected individuals and the relevant regulatory authorities.

By signing a Processing Agreement, both parties demonstrate their commitment to protecting personal data and complying with privacy laws.

This not only helps in building trust with users but also minimizes legal risks associated with data processing.