MK – CJEU Judgment (Germany, 2024)

CJEU Judgment
Court of Justice of the European Union19 December 2024Germany
final
CJEU Judgment

CJEU judgment — not a DPA enforcement action

This is a Court of Justice ruling, not an enforcement action by a data protection authority. It is not included in cookie statistics or the Risk Calculator.

The Court of Justice ruled on a case involving a company that transferred employee data to its parent company in the USA without proper justification. This ruling clarifies the rules around transferring personal data in employment situations. Companies must ensure they have a valid reason for such transfers to protect employee privacy.

What happened

The company transferred personal data of its employees to a server in the USA without necessary justification.

Who was affected

Employees whose personal data was transferred to the parent company's server.

What the authority found

The Court held that the company lacked a valid legal basis for processing the employee's personal data under GDPR.

Why this matters

This decision emphasizes the importance of having a legitimate reason for transferring employee data, especially across borders. Companies should review their data transfer practices to comply with privacy regulations.

GDPR Articles Cited

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Art. 88(1) GDPR
Art. 88(2) GDPR

Original data from scraper before AI verification against source document.

National Law Articles

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§ 26(4) BDSG
Decision AuthorityCJEU
Reviewed AuthorityBAG (Germany)
Source verified 20 March 2026
articles corrected
national law identified
Full Legal Summary
Detailed

The data subject is employed by the controller, a company governed by German law. In 2017, the group of companies to which the controller belongs introduced a cloud-based new software as a personnel information management system. In that context, the controller transferred personal data of its employees from the to-be-replaced software to a server of the group’s parent company in the USA. The controller and its works council had concluded an agreement confirming acquiescence to the introduction of the new software, which limited the transfer of data to certain categories. In that context, the data subject brought applications before the Labour Court (Arbeitsgericht Ulm - AG Ulm) and then before the Higher Labour Court (Landesarbeitsgericht - LAG Baden-Württemberg) for access to certain information, erasure of data concerning him, and compensation. Not fully satisfied in the course of these procedure, the data subject brought an appeal before the Federal Labour Court (Bundesarbeitsgericht - BAG), claiming that the transfer of his personal data to the parent company’s server was neither necessary for the purposes of the employment relationship (as the controller still used the to-be-replaced software) nor for the purpose of testing the new software, since the use of dummy data would have been sufficient. Additionally, the data subject claimed that, even if the works agreement confirming acquiescence could constitute a valid basis for that processing, the authorisation contained therein was exceeded, since the controller transmitted data other than those provided for. The Federal Labour Court stayed the proceedings and referred the following questions to the CJEU: # Is a national legal provision that has been adopted pursuant to Article 88(1) GDPR – such as [https://www.gesetze-im-internet.de/bdsg_2018/__26.html Paragraph 26(4) of the German Federal Data Protection Act] (Bundesdatenschutzgesetz - BDSG) – and which provides that the processing of personal data, includin

Outcome

CJEU Judgment

A judgment by the Court of Justice of the European Union, typically on a preliminary reference from a national court.

Details

Judgment Date

19 December 2024

Authority

Court of Justice of the European Union

About this data

Data: GDPRhub (noyb.eu)
Licensed under CC BY-NC-SA 4.0
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Cite as: Cookie Fines. MK - Germany (2024). Retrieved from cookiefines.eu

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