What does a South African HR software needs to be internationally compliant

What does South African Human Resources Software need for compliance internationally?

South African businesses operating internationally need to be aware of regulations with regards to privacy and confidentiality globally. What does South African Employee Software need for compliance?

As companies operate on the cloud, they need to be aware of and comply with the regulations such as:

• The Personal Information Protection and Electronic Documents Act of Canada
• Cyber Security Law of China
• General Data Protection Regulation (GDPR) and ePrivacy in the European Union
• Personal Data Protection Bill 2018 of India
• California Consumer Privacy Act (CCPA) and The California Online Privacy Protection Act (CalOPPA) of the USA
• The Privacy Act 1988 of Australia
• Personal Data Protection Bill 2018 of India

South African Human Resources (HR) software providers aiming to comply with international data protection regulations such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA) should consider the following key areas:

1. Data protection compliance:

GDPR Applicability: This law is very similar to the POPIA in South Africa and applies to organizations processing personal data of individuals within the European Union, regardless of the organization’s location. South African companies handling EU residents’ data must adhere to GDPR standards.

HIPAA is a U.S. regulation focusing on the protection of health information. While primarily applicable within the U.S., South African companies dealing with U.S. patients’ health data, especially in sectors like medical tourism or telemedicine, should consider HIPAA compliance. Companies in contact with these companies need to ensure they keep up to date with relevant developments in the US, however the basics apply – People’s information is confidential and private, not allowed to be accessed without the persons express permission and in certain circumstances.

2. Alignment with POPIA:

POPIA Overview: South Africa’s Protection of Personal Information Act (POPIA) aligns closely with GDPR principles, emphasizing lawful processing, data minimization, and individuals’ rights. Compliance with POPIA can serve as a foundation for meeting GDPR requirements.

3. Key compliance measures:

• Data security: Implement robust security measures to protect personal and health information from unauthorized access, breaches, or leaks.
• Data minimization: Collect only the data necessary for specific HR functions and ensure it’s used solely for its intended purpose.
• Consent management: Obtain explicit consent from individuals before collecting or processing their personal or health information.
• Data subject rights: Establish procedures to address individuals’ rights, such as access to their data, correction of inaccuracies, and requests for deletion.
• Data breach response: Develop and maintain a data breach response plan to promptly address and report any incidents.

4. South African HR software needs to allow for internal and international legal compliance, ensuring the protection of personal and health information in line with international standards.

4. Regular audits and training:

Compliance audits: Conduct regular audits to assess compliance with relevant regulatory bodies in identifying and addressing any gaps.

Employee training: Provide ongoing training for staff on data protection principles and the importance of safeguarding personal and health information.

Comparative table of major global data privacy and cybersecurity laws:

Aspect	POPIA (South Africa)	GDPR (EU)	HIPAA (US)	Cybersecurity Law (China)	PDP Bill 2018 (India)	Privacy Act (Australia)	PIPEDA (Canada)
Full Name	Protection of Personal Information Act	General Data Protection Regulation	Health Insurance Portability and Accountability Act	Cybersecurity Law of the People’s Republic of China	Personal Data Protection Bill, 2018	Privacy Act 1988	Personal Information Protection and Electronic Documents Act
Scope	Personal data of SA citizens & residents	Personal data of EU residents worldwide	Health data in the U.S. healthcare sector	Personal and business data handled in China	Personal data of Indian citizens	Personal information of Australian residents	Personal data collected in commercial activities
Sector Focus	All industries handling personal data	All industries handling personal data	Healthcare & health insurance	All industries, particularly tech & critical sectors	All industries handling personal data	All industries handling personal data	Businesses engaged in commercial activities
Data Types Covered	Personal information (name, ID, contacts, etc.)	All personal data, including special categories (health, biometric, religious, etc.)	Protected Health Information (PHI)	Personal, financial, and critical infrastructure data	Personal data, sensitive personal data	Personal information (name, address, health, etc.)	Personal information used in commercial activities
Legal Basis for Processing	Consent or legal justification required	Lawful basis required (consent, legal obligation, etc.)	Permitted for healthcare operations only	Consent-based but with state oversight	Consent-based processing with strict regulation	Implied or explicit consent needed	Consent-based processing but with some exemptions
Data Subject Rights	Access, correction, deletion	Access, correction, deletion, portability, restriction	Limited rights (mainly access and correction)	Limited rights, with government access allowed	Right to access, correction, and erasure	Right to access, correction, and opt-out	Access, correction, and withdrawal of consent
Consent Requirement	Required in most cases	Explicit consent for sensitive data	Not always required	Required but with government exemptions	Explicit consent required for processing	Implied for general data, explicit for sensitive data	Required for collection, use, and disclosure
Data Breach Notification	Mandatory notification to regulators & individuals	Must notify authorities within 72 hours	Required for breaches affecting 500+ people	Strict reporting rules for critical sectors	Mandatory for sensitive data breaches	Mandatory for serious breaches	Mandatory for significant breaches
Cross-Border Data Transfer	Allowed with adequate protection	Restricted unless adequate safeguards	Allowed with safeguards	Highly restricted (data localization laws)	Restricted unless safeguards are in place	Allowed with privacy protections	Allowed if comparable protection is ensured
Government Access to Data	Requires legal process	Requires legal process	Allowed under US laws (e.g., PATRIOT Act)	Broad government access to all data	Allowed for national security reasons	Requires legal basis	Requires legal basis but some exemptions exist
Penalties for Non-Compliance	Fines up to ZAR 10M or imprisonment	Fines up to €20M or 4% of global turnover	Fines up to $1.5M per violation	Severe fines and business restrictions	Penalties up to 2% of global turnover	Fines up to AUD 2.1M for serious violations	Fines up to CAD 100,000 per violation
Enforcement Authority	Information Regulator of SA	Data Protection Authorities (EU)	US Dept. of Health & Human Services (HHS)	Cyberspace Administration of China (CAC)	Data Protection Authority of India (proposed)	Office of the Australian Information Commissioner (OAIC)	Office of the Privacy Commissioner of Canada
Unique Features	Aligns with GDPR, includes criminal liability	Strictest global law, broad extraterritorial reach	Healthcare-specific, with strong security requirements	Mandates data localization (must store data in China)	Modeled after GDPR but less strict enforcement	Allows some exemptions for small businesses	Covers commercial organizations, not all industries

Key elements:

• GDPR remains the strictest, with global applicability and the highest fines.
• China’s Cybersecurity Law is the most restrictive on cross-border data transfers and government data access.
• HIPAA is the only law focused specifically on healthcare data, whereas others apply broadly to all industries.
• India’s PDP Bill is modelled after GDPR but still evolving in enforcement.
• Australia and Canada offer privacy protections but with more exemptions for businesses