D: Solvency of KiK employees was reviewed on a quarterly basis

The textile discount company KiK-Textilien & Non-Food GmbH systematically reviewed its employees through the credit bureau 'Creditreform' on a regular basis.

The district attorney's office in Dortmund initiated an investigation to examine the suspicion that KiK unlawfully reviewed the solvency of its employees through the credit bureau.

According to recent reports, KiK reviewed the solvency of its employees up to four times a year with the credit bureau.

The supervisory authorities for data protection also support the opinion that a review of employee solvency is permitted any time a valid interest factor is present.

In accordance with Section 28 (1) sentence 1 number 2 of the German Federal Data Protection Act, not only must the data processor - in this case KiK - have a justified interest, but such interest must also be essential to the realization of the business purpose. The criminal prosecution authorities are currently investigating the extent to which this applies in this particular case. KiK, however, argues that only employees in sensitive (cash point) areas are subject to review and a message is sent to area and sales mangers only in the absence of solvency.

Employees may not be reviewed as a matter of course and without suspicion. In exceptional cases, i.e. employees in sensitive areas such as cash and bank windows, a one time review may be permissible. However, after the review has been conducted, the employees must be notified of the fact that they were reviewed and the result must be disclosed.