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Compliance

HR Data Residency in the EU: What CHROs Need to Sign Off in 2026

February 11, 2026 · 8 min read

Schrems II is now five years old. The transatlantic data framework is wobbling again. Here's what EU-headquartered employers need from their HR vendors right now.

Where the law sits

GDPR Article 44 + recent court rulings have tightened the practical interpretation of adequacy. Even with a valid framework, EU regulators are increasingly asking for technical guarantees, not just contractual ones.

What to demand from vendors

EU-resident primary storage. EU-resident backups. Sub-processors disclosed and EU-residency-attested. Encryption keys held in-EU or HSM-bound. SCC + TIA on file.

The contractual layer

DPA, sub-processor list, breach notification timelines, deletion-on-request workflow, data portability format. Don't accept 'we comply with GDPR' as an answer — ask for the artefacts.

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