On August 25, 2010, the German government approved a draft law concerning special rules for employee data protection, originally proposed by the Federal Ministry of the Interior. A background paper on the draft law was published on August 25, 2010. The draft law would amend the German Federal Data Protection Act (theBundesdatenschutzgesetz or “BDSG”) by adding provisions that specifically address data protection in the employment context.
Read more on Hunton & Williams Privacy & Information Security Law Blog. The draft law also reportedly includes a data breach notification requirement:
Security Breach Notification: Employers must notify affected employees if it is determined that employee data has been unlawfully disclosed to a third party. In the event of a serious threat to the rights or protected interests of an employee, the employer must also notify the competent data protection authority.