Your data security is our top priority: Employment Hero is now SOC 2 Type II compliant

At Employment Hero, trust is the cornerstone of our relationship with our customers. Knowing you entrust us with sensitive company and employee data, we made a commitment to validate our security controls against the industry’s toughest standards.

In October 2025, Employment Hero achieved SOC 2 Type II compliance, a stringent certification verified by the independent auditors at Global Compliance Certification (GCC). This isn’t just a badge; it’s confirmation of our dedication to your security.

But what exactly is SOC 2, and why does it matter? We’ll break it down in this blog.

What is SOC 2?

SOC 2 stands for System and Organization Controls 2. It’s a set of standards developed by the American Institute of Certified Public Accountants (AICPA) to assess the security, availability, processing integrity, confidentiality, and privacy (all part of the Trust Service Principles) of a service provider.

There are two main types of SOC 2 reports:

• Type 1: This report provides a point-in-time snapshot of a service organization’s controls. It essentially says, “Yes, we have these security measures in place.”
• Type II: This more in-depth report goes beyond design, evaluating how effectively those controls operate over a period of time. It answers the question, “Are these controls working as intended?”

SOC 1 vs. SOC 2

SOC 1 and SOC 2 are both auditing standards developed by the AICPA. While they both focus on control, they have different areas of emphasis. Here’s a breakdown of their key differences.

SOC 1 concentrates on a service organization’s controls over financial reporting. It’s typically used by organizations that process financial data for their clients. The goal is to assure the client that the service organization’s controls won’t negatively impact the accuracy of their financial statements.

SOC 2 has a broader scope, focusing on a service organization’s controls relevant to the Trust Service Criteria (TSC). These criteria encompass:

• Security: Safeguarding information systems and data from unauthorized access
• Availability: Ensuring systems and data are accessible to authorized users when needed
• Processing Integrity: Guaranteeing data is processed accurately, completely, and timely
• Confidentiality: Protecting the privacy of sensitive information
• Privacy (optional): Demonstrating adherence to specific privacy regulations

Who needs SOC 1 and SOC 2 certifications?

SOC 1 is typically needed by organizations that outsource financial reporting tasks, like payroll processing or bookkeeping, to a service organization.

SOC 2 is more widely applicable. Any organization that uses a service provider that handles their data can benefit from a SOC 2 report. It’s particularly important for companies that deal with sensitive data or are subject to strict data privacy regulations.

Why SOC 2 matters 

In today’s digital world, data security breaches are unfortunately common. These breaches can have serious consequences for businesses, including financial losses, reputational damage, and regulatory fines. By achieving SOC 2 Type II compliance, we’re demonstrating our commitment to protecting our clients’ data from these threats.

Here are some of the specific benefits that SOC 2 compliance brings to our clients.

Enhanced security

Our rigorous SOC 2 audit process ensures we have identified and addressed potential security risks. This translates to a more secure environment for company and employee data, reducing the likelihood of a data breach.

Increased trust

The independent audit verification provided by SOC 2 compliance gives clients peace of mind. They can be confident that their data is in safe hands and that we’re taking all necessary steps to protect it.

Improved compliance

Many regulations require businesses to work with vendors who meet certain security standards. SOC 2 compliance can help clients demonstrate that Employment Hero meets these standards, simplifying their own compliance efforts.

Raising the bar for vendor trust and compliance

With privacy legislation like PIPEDA and provincial equivalents shaping the way businesses manage data, SOC 2 compliance is no longer a “nice to have” — it’s a baseline requirement in vendor selection. When companies partner with third-party platforms, they don’t offload responsibility for data security — they extend it. If a provider mishandles sensitive data, the client can still be held accountable.

By achieving SOC 2 Type II compliance, Employment Hero helps clients reduce legal and compliance risks, speed up vendor approvals, and meet the expectations of regulators, customers, and internal stakeholders. Key benefits include:

• Faster vendor approvals by meeting security due diligence requirements
• Stronger procurement support for regulated industries like finance, healthcare, and education
• Reinforced disaster recovery and uptime standards to protect business continuity
• Simplified third-party risk assessments, easing audits and capital raises

Canadian clients can also request a summary of Employment Hero’s SOC 2 audit results to complete their own governance checks with confidence. For growing organizations, SOC 2 adds weight in board-level and legal reviews, helping champions inside the business fast-track decisions.

Employment Hero and SOC 2 Type II

By achieving SOC 2 Type II compliance, Employment Hero demonstrates that we:

• Have robust security controls in place to protect client data
• Regularly test and monitor those controls to ensure their effectiveness
• Maintain a secure environment for processing, storing, and transmitting data

This rigorous audit process gives our clients peace of mind knowing their data is secure. But it’s not just about compliance; it’s about building trust.

“This is a milestone achievement,” said Kevin Kliman, President of Canadian Business at Employment Hero. “Earning SOC 2 Type II compliance demonstrates our commitment to protecting customer data with the highest security standards. It means that Canadian businesses can trust that the processes behind our platform are secure and reliable — so they can focus on running and growing their business with confidence.”

Beyond compliance: Our promise of continuous data protection

At Employment Hero, achieving SOC 2 Type II compliance is just one step in our ongoing commitment to information security. We’re constantly working to improve our security by implementing new technologies, enhancing our internal processes, and staying up-to-date on the latest security threats. 

We take security seriously because trust is everything, and by achieving SOC 2 Type II compliance, we’re demonstrating our commitment to protecting client data and building trust with our clients. 

For a deeper dive into Employment Hero’s commitment to data security, visit our Trust Centre.