GDPR & nFADP Guidefor Pros
GDPR & nFADP Guide for Pros Download for free GDPR & Swiss nLPD Compliance for SME IT Infrastructures WHY IT MATTERS Swiss SMEs must comply with both the EU GDPR and the Swiss Federal Act on Data Protection (nLPD). These laws apply to all organisations processing personal data, regardless of size. Non-compliance risks fines (up to €20M under GDPR, CHF 250k under nLPD) and reputational damage. KEY LEGAL PRINCIPLES Principle Description Data Minimisation Security & Confidentiality Accountability Lawfulness & Transparency Inform users clearly about data use and obtain valid consent. Collect only what’s necessary. Protect data with encryption, access controls, and breach response plans. Keep records, assign responsibility, and train staff. I T COMPLIANCE CHECKLIST Step Action Owner Assign Responsibility Map Data & Risks Legal Basis & Consent Update Policies Implement Security Measures Retention & Minimisation Manage Vendors Enable Rights Requests Train Staff Breach Response Plan Appoint a privacy lead or DPO. Management IT + Privacy Legal + IT Legal IT Security IT + Legal Procurement HR + IT IT + Privacy Audit data flows and assess gaps. Justify each data use (consent, contract, etc.). Publish privacy notice and internal guidelines. Encrypt data, enforce MFA, monitor systems. Delete unnecessary data, set retention rules. Sign Data Processing Agreements (DPAs). Allow users to access, correct, or delete their data. IT + Support Educate employees on privacy and security. Prepare and test incident response procedures. TECHNICAL MUST – HAVES Encryption: For data at rest and in transit. Access Control: Role-based permissions, MFA. • Retention Policies: Automate deletion of outdated data. • Monitoring: Detect and respond to breaches swiftly. SWISS VS EU DIFFERENCES Swiss law protects individuals only, not companies. • Breach notification must be done ASAP, not within 72h. • Fines target individuals, not just companies. • Legal basis is flexible, but must not infringe privacy. RGDP Guide for the Professionals A GDPR Compliance Guide for IT Infrastructures in Swiss SMEs (including Swiss nLPD) Overview: GDPR and Swiss nLPD in a Nutshell GDPR (General Data Protection Regulation) – An EU-wide privacy regulation effective since 2018, setting strict rules on how organisations handle personal data. GDPR has extraterritorial reach: it applies to companies outside the EU (including Swiss SMEs) if they offer goods/services to EU residents or monitor their behaviour online. GDPR mandates principles like lawfulness, transparency, data minimisation, purpose limitation, accuracy, storage limitation, integrity/confidentiality, and accountability (Article 5 GDPR). It introduced obligations such as data protection by design and by default, mandatory breach notifications within 72 hours, and substantial fines for non-compliance (up to €20 million or 4% of global turnover). For IT infrastructure, GDPR translates to ensuring that systems and processes protect personal data at all stages – from collection and storage to transfer and deletion Swiss nLPD (new Federal Act on Data Protection, 2023) – Switzerland’s updated data protection law (in force since 1 September 2023) aligns closely with GDPR’s principles to maintain EU adequacy. The nLPD (revised FADP) strengthens individuals’ rights and introduces Privacy by Design and Default into Swiss law. Key points: it applies to personal data of natural persons (the new law, unlike the old one, no longer protects data on legal entities). Swiss SMEs handling personal data must comply with nLPD requirements even if they are not under GDPR scope. Notably, nLPD requires maintaining a record of processing activities (with some exemptions for low-risk SMEs) and “prompt” breach notification to the regulator. However, there are some differences from GDPR (detailed later): for example, fines under nLPD are capped at CHF 250,000 and typically target responsible individuals, and breach reports must be made “as soon as possible” rather than within a fixed 72-hour window. Overlap and Importance: Both GDPR and nLPD seek to protect personal data and give individuals control over their information. For a Swiss SME’s IT department, this means building a compliant IT infrastructure that meets both sets of requirements. Fortunately, a company that is GDPR-compliant will meet most nLPD obligations, as the Swiss law was designed to be compatible. The following sections outline the core compliance requirements and practical steps for IT teams, and highlight where GDPR and nLPD converge or diverge. Key Compliance Requirements for IT in SMEs Lawful and Transparent Data Processing Every personal data processing activity must have a lawful basis and be transparent to the individual. GDPR defines six lawful bases (consent, contract, legal obligation, vital interests, public task, legitimate interests) for processing (Article 6 GDPR). Swiss nLPD similarly requires justification for data processing. Action for SMEs: Document all categories of personal data your IT systems collect and process (customer data, employee data, etc.), and note the legal basis for each. Provide clear privacy notices to users explaining what data is collected and why (transparency). Avoid collecting data you don’t need (data minimisation) and only use it for the stated purposes. For instance, if an SME’s website tracks user behaviour with analytics, GDPR likely requires user consent or another valid basis for that tracking. Both laws also enshrine individuals’ rights (access, correction, deletion, data portability, etc.), so IT systems should be prepared to fulfil data subject requests – e.g. allowing extraction or deletion of a user’s data upon request. Data Storage and Retention Personal data should be stored securely and not retained longer than necessary. Under the GDPR’s “storage limitation” principle, data must be deleted or anonymised once it’s no longer needed for the purpose collected. Swiss nLPD similarly expects you not to keep personal data indefinitely without reason. Action for SMEs: Implement retention policies in IT systems – e.g. automatically delete or archive data after a certain period if it’s not needed. For example, logs containing personal data might be purged after X months. Ensure that backups and archives are also covered by these retention limits (so old personal data doesn’t live forever in backup files). If your SME uses cloud services or data centers abroad, confirm that international storage complies with GDPR/nLPD transfer rules – i.e. either the country has an adequacy