Subsidiary Of Worldline SA Embroiled In Complex Litigation

Payone and former employee Jerry Logo were before the High Court on 19 May 2023 in injunction proceedings.

In a multiple case legal dispute, Payone GmbH, a subsidiary of Worldline SA and a prominent card payments company, finds itself entangled in a fiercely contested legal battle. As the eagerly awaited judgments from the Watford Employment Tribunal and the London Central Employment Tribunal (awaiting trial) loom on the horizon, an unexpected development in the High Court has added a new twist to this unfolding saga.

The legal proceedings have been likened to a David versus Goliath battle, with the former employee representing himself against Payone GmbH’s legal team from Orrick, Herrington and Sutcliffe (UK) LLP, led by Counsel. During the hearing at the High Court King’s Bench Division in May 2023, the former employee argued his position, as he had done during the injunction proceedings.

Following the hearing in May 2023, written exchanges took place between the parties regarding the drafting of the Order.

The ex-employee raised technical issues concerning the deletion of a substantial number of confidential documents attached to emails he had sent. The former employee claimed that he lacked the necessary software to delete these documents from at least one of his email accounts. Based on the information available, the court made a modification to its initial order, which allowed the former employee to retain the documents attached to emails sent after the termination of his employment. This modification, viewed from another perspective, can be seen as a refusal of the claimant’s injunction application, as it did not grant the requested relief. The relevant relief sought included whole deletion but only partial.

The unexpected turn of events in the High Court decision sheds light on the complexity of the case and the challenges faced by all parties. It is noteworthy that Payone GmbH’s delay in initiating the legal proceedings influenced the court’s decision. As a result, the former employee was allowed to retain the confidential documents subject to the order, with a restriction on disclosing their contents. This outcome emphasises the importance of timely action in legal matters and its impact on the court’s rulings.

Within the context of the upcoming judgments, the Watford Employment Tribunal and the London Central Employment Tribunal trials hold significance in determining the overall outcome of the litigation. The Watford Employment Tribunal’s judgment (3303093/2021) will address the alleged incidents of race discrimination, including the presence of a blackface character at a Payone GmbH Christmas party and an allegedly racist joke made by Florian Risch. Although he denies it constituted racial harassment and was not a joke, Payone GmbH supports his position. Conversely, the London Central Employment Tribunal trial, scheduled for 27 June 2023, focuses on protected disclosures detriment (2206197/2022). The decisions reached in these tribunals carry substantial weight and may significantly impact the wider litigation, with ramifications extending to all parties involved. Observers keenly await the outcomes, as they may provide valuable insights and potentially reveal any underlying connections to the timing of the injunction application.

Keep following Loopline on Linkedin to receive our coming article delving into the background between Payone GmbH, their former employee and Loopline media.
While the injunction presented challenges for both parties, the court ordered the former employee to a delivery up of hard copy documents and deletion of confidential electronic documents.

Loopline Media has engaged in discussions with the legal representatives of Payone GmbH, who have acknowledged receipt of the article. However, despite these communications, no mutual agreement could be reached regarding the publication of the article in its current form.

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Post-Brexit: data protection
Card processor sends sensitive data to wrong address
24 August 2022

Worldline SA subsidiary Payone GmbH has been accused of breaching data protection rules after it sent sensitive employee payroll information to the wrong address by accident. The Worldline Group holdS a 60% stake in the Frankfurt based company who have a small UK market presence.

In June 2021, one of Payone GmbH’s ex UK employees (the data subject) received a “potential data breach notification” from the firm advising him that his salary, National Insurance data, nationality (Special Category Data) was amongst various bits of information sent to an incorrect home address.

This included personal information such as the former employees name, age and address.  It also included details such as the date of birth and the amount of annual work bonus he received in his bank account amongst other identifiable data.

Payone GmbH confirmed that this document was sent out in error following an employee making a mistake when re-entering data processed by their third-party payroll provider.  The error arose when the employee was fulfilling an Article 15 GDPR request. The error was spotted by the data subject when he noticed in an email version of the document that the postal address was incorrect. An attempt to notify Payone GmbH of the error went in vain as the document was already irretrievably despatched.

The data subject was alarmed with the incident which exposed him to the possibility of fraudulent activity, amidst reasonable fears his data could end up on the dark web and used by criminals.  Habitually resident in the UK he complained to the Information Commissioner’s Office (ICO) in June 2021. He similarly raised the concern in Germany via The Hessian Commissioner for Data Protection and Freedom of Information (HBDI).

The ICO reprimanded Payone GmbH for the error in their final decision letter.
Similarly, the HBDI cited a violation of Article 5(f) of the General Data Protection Regulation (GDPR) relating to integrity and confidentiality.

The ICO stated in their July 2021 findings that Payone GmbH, “should take steps to ensure that all personal data records are accurate and up to date. Holding inaccurate information, such as addresses, does increase the risk of personal data breaches and poses risks to the security of information”.

The HBDI confirmed in their October 2021 findings that Payone GmbH had taken remedial action. They concluded that a monetary fine would not be imposed on Payone GmbH as they had taken technical and organisational steps in response to the data breach. Data subjects could now request their data in an autonomous portal.

The GDPR, which came into effect in 2018, gave the Information Commissioner’s Office greater powers to tackle data breaches. The new ‘UK GDPR’ charts its own course after Brexit whilst seeking to maintain EU GDPR adequacy.  In extreme scenarios, organisations face penalties of up to £20m or 4 per cent of their global worldwide turnover, whichever is more.

In the years prior to GDPR, the ICO fines were capped at £500,000.

The data subject said: “I am just glad I spotted it; they were going to resend the document again to another wrong address. Prior to Brexit the process would have been commenced via the ICO who in turn would liaise with the HBDI on the data subjects’ behalf; but I found myself communicating with both authorities separately which was an additional step but in the end was surprisingly
effective. Unfortunately, Payone GmbH again sent my incorrect address to the
Workers Pension Trust in January 2022, and documents yet again went to the wrong address. In my opinion they have not learned from the first time and my complaint is sitting with the ICO yet again”.

The former employee is pursuing a remedy under Article 82 UK GDPR via
the Court’s of England & Wales.

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