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Navigating the Digital Personal Data Protection Act 2023 in Recruitment

A Revised Guide for Large Organizations
Sandilya Venkatesh

Data Protection

 

The Digital Personal Data Protection Act 2023 ushers in a new era of privacy and data protection in India, particularly impacting HR and recruitment within large organizations. This article explores the Act's implications for recruitment, emphasizing the necessity of incorporating OTP-based authentication for accessing public or government databases.

Understanding the Act

The Act focuses on safeguarding individual privacy rights, categorizing personal data, and setting stringent guidelines for data fiduciaries and processors. For recruiters, this translates to a more accountable and transparent handling of candidate data. 

Compliance Framework for Recruitment:

Key to compliance is the principle of obtaining explicit consent from candidates and ensuring data minimization. However, a significant process change is the integration of OTP-based access systems for verifying candidate information from databases like Aadhaar, EPFO, and credit scores. This ensures that candidates personally authenticate the access to their data, aligning with the Act's emphasis on privacy and security. 

Risks and Liabilities:

Non-compliance carries hefty penalties, including financial fines and reputational damage. Organizations must prioritize secure data handling practices to maintain trust and comply with legal standards. 

Best Practices for Secure Recruitment:

Organizations should adopt secure data storage, conduct regular compliance audits, and train HR teams on data protection laws. Emphasizing the importance of candidates personally entering OTPs for data verification is a critical step towards compliance. 

Technology's Role in Complying with the Act:

Investing in technology that supports OTP-based authentication and secure data handling can simplify compliance, ensuring that recruitment practices meet the Act's requirements. 

Conclusion:

The Digital Personal Data Protection Act 2023 necessitates a thoughtful revision of recruitment practices, particularly the adoption of OTP-based authentication for data verification. By embracing these changes, organizations can ensure compliance, enhance data security, and foster a culture of privacy and trust in the recruitment process.