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Data sharing agreement

Data sharing agreement is a contract that says who may use which personal data, for what purpose, with what security, and what happens on exit.

How it works

Use one between you and the EOR, and think about subprocessors (tools). Purpose limitation is the point. A vague ‘we share data as needed’ clause is not a DSA. For a U.S. company hiring one Filipino teammate, write this into the brief, the employment contract, and the peso payroll file before the start date. Slack habits do not override the Labor Code, BIR, or NPC. If the local employer of record holds the paper, they run the statutory step; you still owe a clean operating definition so the seat does not fail in week three. Put a number on the example when you budget loaded cost, because a nameless allowance always returns as a December surprise or a missed SLA.

Example: DSA: EOR sees employee data only. EA sees customer data only on company systems. Exit: access cut same day.

How it differs

Cross-border transfer is the geography problem. Confidentiality clause is broader and weaker if it never names data.

Common errors

Pasting a U.S. DPA and never naming Philippine law.

In practice

Treat Data sharing agreement as a week-one operating object. Name the system of record, the device, and who can still log in on the last day. If the answer is a shared password, stop. Write an owner - founder, local employer, or worker - and a date you will look at it again: first cutoff, first holiday, or first miss. If nobody can show a contract clause, a payslip line, a calendar block, or a checklist box, you do not have data sharing agreement yet. You have a conversation. Convert the conversation before the person starts, while changing the deal still costs a paragraph rather than a resignation. Re-read the worked example above against the actual hire in front of you. If the numbers in that example cannot be swapped for this seat’s pesos, hours, and start date, the brief is still unfinished.

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