Under which condition is processing sensitive employee data acceptable?

Processing sensitive employee data is acceptable when it is necessary for the data controller to fulfill their obligations under employment law. This legal basis is particularly relevant in contexts where strict data protection regulations apply, such as the General Data Protection Regulation (GDPR) in Europe. Employment law may require employers to process sensitive data, such as health information, to comply with duties related to workplace safety, employee health and well-being, or compliance with anti-discrimination laws.

While other options might seem plausible in certain contexts, they do not specifically align with the stringent requirements for processing sensitive data. For example, while performance of a contract may involve personal data, it is typically not sufficient to justify the processing of sensitive data unless it directly relates to the duties defined in employment law. Additionally, pursuing interests of the data controller or both parties, without legal obligations tied to employment law, does not meet the strict criteria set by data protection regulations regarding the processing of sensitive data. This makes the reference to obligations under employment law the most robust justification for processing sensitive employee data.