cyber securityData PrivacyYour HR’s Employee Data Policy May Be Illegal

Why 95% of Companies Are Accidentally Violating the DPDPA with Their HR Practices?

The Silent HR Crime Wave

Your HR team collects Aadhaar numbers, biometric attendance logs, health records, performance reviews, etc. The list can be surprising.

Under the DPDPA, this is“personal data” and your current HR policies likely violate the law because:

• No Explicit Consent: Most companies process employee data under “contractual necessity” but fail to define exactly how they will use it. That is illegal under DPDPA.
• Forever & Forbidden: Storing employee data indefinitely? The DPDPA forces you to delete it post-resignation unless legally required to keep it.
• Background Check Blunders: Third-party verification vendors often hoard data without employee consent.

You are liable for their breaches.

What is at Stake?

• Penalties up to ₹250 crore for non-compliance.
• Employees can sue you for damages if you share their data without consent (e.g., with insurers or payroll vendors).

Reputation nuke– Data Protection Board investigations will be known, publically.

The Usual Matrix of 4 Illegal Clauses Your HR Policy Probably Has

1.“We retain employee data for business purposes” ➜Vague

2.“By joining, you consent to data processing”➜Blanket consent

3.“We share data with verified third parties”➜ Illegal

4.“Data anonymized for analytics”➜ Anonymization does not entitle you as an exception

These are a Few of the DPDPA’s HR Trap: Who is Already Falling?

This article is an academic initiative brought to you by the Data Privacy Pro team, India’s leading source for cutting-edge insights in data privacy. Stay updated, stay compliant.