CIPP/E Study Guide
Ch 18.3 - The processor contract

Mandatory Article 28(3) contract terms

Processing by a processor must be governed by a written contract (or other binding legal act). Article 28(3) sets out the mandatory terms. From the controller's point of view these should be as explicit as possible. The core terms: process only on documented instructions; ensure confidentiality; implement appropriate security (Article 32); respect sub-processor authorisation rules; assist the controller with data-subject rights and Articles 32–36; at the controller's choice delete or return all data at the end; make available all information to demonstrate compliance; and allow for and contribute to audits.

Processing by a processor must be governed by a written contract or other binding legal act. Article 28(3) lists the mandatory terms. The strength of bargaining power affects wording, but from the controller's side the obligations should be as explicit as possible.

Mandatory Article 28(3) processor-contract terms
#TermWhat it requires
1Documented instructionsProcess personal data only on the controller's documented instructions, including for international transfers, unless required by EU/member state law (then inform the controller first, unless that law prohibits it)
2ConfidentialityEnsure persons authorised to process are committed to confidentiality or under a statutory duty of confidentiality
3Security (Art 32)Take all appropriate technical and organisational security measures
4Sub-processor authorisationRespect the Art 28(2)/(4) conditions for engaging sub-processors (prior authorisation, flow-down, liability)
5Assist with data-subject rightsHelp the controller respond to individuals exercising their rights, by appropriate technical and organisational measures, insofar as possible
6Assist with Arts 32–36Assist the controller in meeting security, breach notification, DPIA and prior-consultation obligations, given the nature of processing and information available
7Deletion or returnAt the controller's choice, delete or return all personal data at the end of services and delete existing copies, unless EU/member state law requires storage
8Demonstrate complianceMake available all information needed to demonstrate compliance with Article 28
9AuditsAllow for and contribute to audits by the controller or an appointed auditor
Memory hook

Article 28(3) terms: Instructions, Confidentiality, Security, Sub-processors, Assist (rights), Assist (Arts 32–36), Delete/Return, Demonstrate compliance, Audits.

Two related practical clauses: employee vetting (ensuring the reliability and training of employees and subcontractor personnel and that they treat the data as confidential), and reliance on the supplier's skill and knowledge to decide what security is 'appropriate' to the harm and to the nature of the data, having regard to the state of technological development and cost of implementing the measures.

Key terms - quick answers

What is “Article 28(3)”?
GDPR provision listing the mandatory clauses a processor contract must contain.
What is “Documented instructions”?
Written instructions from the controller; the processor may process only on these (including for international transfers) unless required otherwise by EU/member state law.
What is “Confidentiality”?
Obligation that persons authorised to process the data are committed to confidentiality or under a statutory duty of confidentiality.
What is “Articles 32 to 36”?
Cover data security, breach notification, data protection impact assessments and prior consultation with DPAs; the processor must assist the controller with these.