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Free policy template · Word

Data Privacy Policy

A data privacy policy explains how the company collects, uses, stores, shares and deletes personal data of employees, candidates and other individuals, in line with the Digital Personal Data Protection Act, 2023. It sets purposes, consent or legitimate uses, security, retention, rights requests and breach handling.

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Preview of the policy

[Highlighted] = fill in
[Company Logo][Company Name]

DATA PRIVACY POLICY

Policy No.:
[Reference Number]
Version:
[Version Number]
Effective Date:
[Date]
Policy Owner:
[Privacy Officer / HR Head]

1. Purpose

[Company Name] respects the privacy of its employees, candidates and others whose personal data it handles. This policy explains how such data is processed lawfully, fairly and securely, in line with the Digital Personal Data Protection Act, 2023 and other applicable laws.

2. Scope

It applies to personal data of current and former employees, candidates, interns, contractors, nominees and dependants, processed by the company or by vendors on its behalf.

3. Definitions

  • Personal data: any data about an individual who is identifiable by or in relation to it.
  • Data principal: the individual to whom the data relates.
  • Data processor: a vendor that processes personal data on the company's behalf.
  • Personal data breach: unauthorised processing, loss or disclosure of personal data.

4. Policy

  1. Personal data is collected only for specified purposes: recruitment, employment administration, payroll and benefits, statutory compliance (PF, ESI, tax), safety, and performance management.
  2. Individuals receive a clear notice at the time of collection describing the data, purpose and how to contact us.
  3. Only necessary data is collected. Aadhaar is collected as a masked copy (last 4 digits) unless a law requires the full number.
  4. Health and other sensitive information is accessed only by authorised HR staff.
  5. Data is shared with processors only under written agreements requiring security and confidentiality.
  6. Data is kept as per the retention table below and then deleted or anonymised.
  7. Individuals may request access, correction or erasure, or raise a grievance, by writing to [Privacy Email]; requests are answered within [Number] days.
  8. Personal data breaches are handled under the Information Security Policy and notified to the Data Protection Board and affected individuals as required.
Data CategoryPurposeRetention
Candidate CVs (not hired)Recruitment[Number] months
Employee master and payroll recordsEmployment, statutory compliance[Number] years after exit
Medical certificatesLeave, insurance[Number] years
CCTV footageSecurity[Number] days

5. Procedure

  1. HR maintains a register of HR data processing activities.
  2. New tools or vendors handling personal data are reviewed by the Privacy Officer before use.
  3. Retention reviews are carried out every [Number] months.

6. Responsibilities

  • Privacy Officer: oversee compliance and requests.
  • HR and managers: handle personal data only for stated purposes.
  • IT: security controls.
  • Employees: keep their data updated and protect others' data.

7. Non-compliance

Unauthorised access to or disclosure of personal data is serious misconduct and will be dealt with under the Disciplinary Policy.

8. Review & Approval

This policy will be reviewed annually and whenever rules under the DPDP Act are notified or amended.

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]
Acknowledged by
[Employee Name]
Date: [Date]

What this template includes

  • Categories of personal data — identity, contact, payroll, health, performance
  • Purposes of processing — employment, payroll, statutory compliance, safety
  • Notice and consent — what individuals are told and when
  • Data minimisation — masked Aadhaar, only needed fields
  • Retention schedule — how long each record is kept
  • Individual rights and grievance contact — access, correction, erasure

When to use it

  • Preparing HR processes for the Digital Personal Data Protection Act, 2023
  • Collecting Aadhaar, health or bank details from employees
  • Sharing employee data with payroll vendors, insurers or BGV agencies
  • Employees ask what data the company holds about them

How to customise this template

  1. 1Fill the data categories and retention table for your HR records
  2. 2Name the person responsible for privacy and the grievance contact
  3. 3List your data processors (payroll, HRMS, insurer, BGV)
  4. 4Align breach steps with your Information Security Policy
  5. 5Check the latest DPDP rules and timelines with legal counsel

HR tips

  • Collect only masked Aadhaar unless the full number is legally required
  • Sign data processing terms with every HR vendor
  • Restrict access to medical and salary records
  • Delete old candidate CVs on schedule

Obligations under the Digital Personal Data Protection Act, 2023 depend on the rules notified under it and their commencement. This template is a starting point; review it with a privacy or legal adviser before adoption.

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Frequently asked questions

Does the DPDP Act apply to employee data?+

Yes, the Act applies to digital personal data, including data of employees and candidates. It recognises certain legitimate uses for employment purposes, but notice, security and other duties still apply.

Should we collect a full Aadhaar copy from employees?+

Collect only what is necessary. For most HR purposes a masked Aadhaar showing the last four digits is enough; collect the full number only where a law specifically requires it.

How long should HR keep employee records?+

As long as needed for the purpose and as required by labour, tax and social security laws. Set a retention schedule and delete or anonymise records after it expires.

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