October 14, 2015

What Does the Recent European Union Safe Harbor Ruling Mean to Your Relocation Program?

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Oct

14

What Does the Recent European Union Safe Harbor Ruling Mean to Your Relocation Program?

By now, you may have heard of the recent decision by the Court of Justice for the European Union (“ECJ”) regarding Safe Harbor. Back in June of 2005, in the U.S., Cartus voluntarily agreed to meet the very high European Union data protection requirements by obtaining its Safe Harbor Certification. Recently, the topic of Safe Harbor Certification has been the subject of much discussion in Europe, and on Tuesday, October 6, the ECJ ruled that Safe Harbor no longer meets the EU’s data protection requirements.

What does this mean, and how is Cartus responding? In order to continue to deliver the high level of data security that our clients have come to expect from Cartus, and in order for all parties to remain in full compliance with the European Union’s requirements, we are utilizing the European Union’s model contractual clauses and making them a part of our service agreements with our clients. This will ensure that Cartus, and by extension, our clients that have relocation volume into, out of, or within the European Union, or that move European citizens on behalf of their European business units, will abide by the laws of European jurisdiction(s). In addition, we are entering into processor agreements with our suppliers, as appropriate.

As always, Cartus will continue to make the security of our clients’, and their relocating employees’, information a top priority. If you have any questions, please feel free to contact your Cartus representative or email us at trustedguidance@cartus.com. You can also read a recent Worldwide ERC® announcement for more background information on this ruling. We will continue to provide updates as more information becomes available.

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Posted By

Bruce Perlman

About Bruce

Bruce joined Cartus in 1991 and was named senior vice president and general counsel in 2001. He has lectured extensively and written many articles on tax and legal topics related to global relocation issues.

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