Which contracts need to be changed for PDPL?

To ensure compliance with Saudi Arabia’s or UAE’s Personal Data Protection Law (PDPL), it’s crucial to review and update any contracts that involve the collection, processing, storage, or transfer of personal data. Failure to update these contracts can lead to significant fines, liabilities, and reputational damage. Here’s a guide to the contracts that need to be changed for PDPL compliance, so you can take action before it’s too late.

1. Vendor and Service Provider Contracts

Why They Need Changes: Third-party vendors often process or store personal data on your behalf. You are responsible for ensuring that they comply with PDPL requirements.

Key Contracts:

• IT Service Agreements
• Cloud Computing Contracts
• Outsourcing Agreements
• Data Processing Agreements (DPAs)

2. Employment Contracts and HR Policies

Why They Need Changes: Employees handle personal data as part of their duties, and they need to be aware of their responsibilities under PDPL.

Key Contracts:

• Employment Contracts
• Employee Confidentiality Agreements
• HR Policies

3. Client and Customer Contracts

Why They Need Changes: These contracts govern the collection and processing of personal data from your clients and customers.

Key Contracts:

• Service Agreements
• Client Engagement Letters
• Customer Terms and Conditions

4. Data Processing Agreements (DPAs)

Why They Need Changes: DPAs govern the relationship between data controllers and data processors, ensuring that personal data is processed in compliance with PDPL.

Key Contracts:

• Agreements with Third-Party Data Processors
• Contracts with IT Service Providers

5. Cross-Border Data Transfer Agreements

Why They Need Changes: PDPL imposes restrictions on the transfer of personal data outside Saudi Arabia. Contracts governing these transfers must ensure compliance with these rules.

Key Contracts:

• International Data Transfer Agreements
• Cloud Service Agreements (involving foreign servers)

6. Marketing and Advertising Contracts

Why They Need Changes: Marketing activities often involve collecting and processing personal data for targeted campaigns, requiring explicit consent from data subjects.

Key Contracts:

• Marketing Service Agreements
• Advertising Contracts
• Affiliate Agreements

7. Partner and Joint Venture Agreements

Why They Need Changes: Partnerships and joint ventures often involve sharing personal data between organizations, necessitating clear agreements on how that data will be handled.

Key Contracts:

• Joint Venture Agreements
• Partnership Contracts

8. Non-Disclosure Agreements (NDAs)

Why They Need Changes: NDAs involving personal data must include provisions that reflect PDPL’s confidentiality requirements.

Key Contracts:

• Confidentiality Agreements
• NDAs for Data Access

9. Outsourcing Agreements

Why They Need Changes: Outsourcing certain business functions may involve processing personal data, and it is essential that outsourcing contracts comply with PDPL.

Key Contracts:

• Business Process Outsourcing (BPO) Agreements
• Outsourcing of IT, HR, or Payroll Services

10. Software Licensing and SaaS Agreements

Why They Need Changes: Software providers may have access to personal data through their platforms, requiring compliance with PDPL.

Key Contracts:

• Software Licensing Agreements
• SaaS Contracts

Next Steps for Contract Updates

1. Conduct a Contract Audit:
   • Identify all contracts that involve the processing of personal data.
   • Prioritize high-risk contracts, such as those involving large amounts of personal data or cross-border transfers.
2. Engage Legal Counsel:
   • Work with legal experts specializing in Saudi data protection law to review and update contracts.
   • Ensure that all new contracts meet PDPL standards and that existing contracts are amended accordingly.
3. Implement Internal Policies:
   • Establish or update internal data protection policies to ensure that all staff handling personal data understand their obligations.
   • Train employees on the new contractual obligations and PDPL compliance.
4. Monitor and Review:
   • Regularly review and audit contracts to ensure ongoing compliance with PDPL.
   • Keep track of any changes to PDPL or guidance from regulators and adjust contracts as needed.

Conclusion

Ensuring that your contracts comply with Saudi Arabia’s PDPL or UAE’s PDPL is essential to avoid hefty fines, legal liabilities, and reputational damage. By updating contracts with vendors, employees, clients, partners, and service providers, you can ensure that personal data is handled in a manner consistent with PDPL’s requirements. Taking proactive steps now will help protect your organization from future risks and ensure compliance with Saudi Arabia’s or UAE’s evolving data protection landscape.

Don’t wait until it’s too late—start reviewing and updating your contracts immediately to stay ahead of the regulatory curve. To know more or discuss further reach out to us on dataprivacy@amlegals.com