In recent years, India has witnessed a surge in the deployment of biometric technologies, particularly facial recognition and biometric scans, across both public and private sectors. Government agencies, from union to state levels, are increasingly utilizing these technologies for attendance recording in public offices, buses, hospitals, and schools, extending even to visitor management. The Andhra Pradesh Government's 2022 mandate for a facial recognition-based attendance system and Telangana's "Geo Attendance" requirement for government school staff exemplify this trend.
Simultaneously, corporate HR departments are actively revising their data collection practices to align with the Digital Personal Data Protection (DPDP) Act 2023. This legislation, governing the rights of Data Principals (employees), is crucial in an environment where many employers (Data Fiduciaries) neglect proper employee data management. The persistent retention of data beyond legitimate use—a common practice—underscores the urgent need for robust data processing policies. While the IT Rules mandate privacy policies for customers, the absence of similar regulations for employees necessitates a proactive approach to data protection within organisations.
Understanding Biometric Data Regulations in India: The DPDP Act 2023
Biometric data, encompassing fingerprints, retina scans, facial recognition, iris scans, and other unique physical identifiers, is pivotal for authentication. The DPDP Act 2023 introduces comprehensive guidelines with significant implications for HR practices in Indian companies. In remote working environments, tools like keystroke logging, screen monitoring, webcam-based verification, and automated activity trackers may also fall under these regulations. Employers must ensure compliance with the Act's provisions on explicit consent, data minimisation, security measures, and lawful processing to mitigate legal risks.
Why Employers Must Establish Data Processing Policies: Compliance and Transparency
Under Section 4 of the DPDP Act 2023, employers can process employee data only if explicit consent has been provided. This means employees must clearly agree to the specific use of their data, such as consenting to share payroll information with a third-party payroll processor or allowing the use of biometric data for attendance tracking. However, Section 4(1)(b) of the DPDP Act introduces an important exception under "Legitimate Uses." This provision allows employers to process employee data even without direct consent, provided it falls under certain legitimate purposes. The specifics of these legitimate uses will be further clarified in the Rules framed under the Act.
While employers may not need to request consent for these legitimate uses, they are still obligated to ensure transparency. Employees must be informed about what data is being collected, how it will be used, and who it may be shared with. Thus, even in the absence of a formal consent process, employers must implement clear, accessible privacy policies that outline their data processing practices. This ensures compliance with the DPDP Act while fostering trust and transparency within the workplace.
Key Provisions of data processing policies
Clarify on the Duty of each Employee regarding data protection
While general employment agreements often mention adherence to applicable laws, it's crucial to have a specific clause dedicated to data protection. This clause should be clearly drafted and agreed upon by both the employer and the employee. It should explicitly state that employees must exercise their data rights responsibly and in compliance with all relevant laws. It must emphasise that data rights cannot be used to infringe upon the rights of others or to violate other legal obligations and provide clear examples, such as: "An employee cannot use a data access request to harass or intimidate another employee, which might violate harassment laws." This section should also cover the responsibility of the employee to keep their login credentials safe, and to not give out company information.
Enlist the "legitimate uses"
Employers must meticulously document and justify all data processing activities that fall under "legitimate uses" as defined by the DPDP Act, such as payroll processing, legal compliance (e.g., tax reporting, regulatory filings), workplace security (e.g., access control, surveillance), performance evaluations, and disciplinary actions.
By clearly defining and limiting these uses, employers can minimize the need for explicit consent and streamline data processing. Specifically for biometric data, it should only be collected for legitimate and necessary purposes, such as attendance tracking and workplace security. It is crucial that employers maintain records explaining why a particular data usage qualifies as a "legitimate use" under the Act.
Inform Employee Rights
As mandated by Section 5(1)(ii) of the DPDP Act, employers must inform employees about their data protection rights. These rights include:
The right to withdraw consent (when applicable).
The right to data erasure (under certain conditions).
The right to correction, completion, and updating of personal data.
The right to access information about their personal data being processed by the employer (Data Fiduciary).
The Employers must ensure that employees understand how to exercise these rights and whom to contact for assistance.
Specify the Data Retention Period
Employers must establish clear data retention policies that specify how long different types of employee data will be stored. Biometric data, in particular, should not be stored beyond its intended use and must be deleted once its purpose is fulfilled. Data retention periods should comply with legal and regulatory requirements and should be based on legitimate business needs. It is good practice to have a schedule of data deletion.
Complaint Mechanism for Data Protection Issues
Under Section 5(1)(iii) of the DPDP Act, organisations must establish a transparent complaint resolution mechanism. This includes:
Internal procedures for employees to raise concerns about data protection.
Steps for filing complaints with the Data Protection Board if internal resolutions are unsatisfactory.
Clear contact information and submission guidelines.
A policy ensuring no retaliation against employees who file valid complaints.
Conclusion
With the implementation of biometric data laws in 2025, businesses must reassess their data management policies. Employers should inform job candidates about biometric data collection during recruitment and onboarding and secure their consent where required. Attendance and monitoring systems, including Aadhaar-enabled biometric attendance in government offices, must align with data protection laws. Companies outsourcing biometric data management to third-party vendors must ensure these vendors comply with the DPDP Act to mitigate legal and security risks.
To ensure smooth compliance with biometric data regulations, organisations should:
Review and update their data collection, processing, and storage mechanisms.
Minimise biometric data collection to only what is necessary.
Implement timely data deletion practices once the data has served its purpose.
By taking proactive steps, companies can enhance employee trust, ensure compliance with legal mandates, and mitigate risks associated with biometric data processing.
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