How Using Fingerprint Scanners for Time Recording May Violate the DPDPA

In India, the Digital Personal Data Protection Act (DPDPA), 2023 has introduced stringent regulations regarding the use of personal data, particularly biometric data. Biometric identifiers like fingerprints are classified as sensitive personal data, demanding higher levels of protection and legal compliance. Using fingerprint scanners for time recording systems in workplaces can potentially lead to violations under the DPDPA. Here’s why:

Biometric Data and Its Sensitivity

Biometric data, including fingerprints, is classified as sensitive personal data because it uniquely identifies individuals. The DPDPA mandates specific conditions for processing such data, which must be justified by a legal basis and aligned with principles like purpose limitation and data minimization.

Challenges of Using Fingerprints in Timekeeping

1. Validity of Consent in Employment Contexts

The DPDPA emphasizes that consent for processing sensitive personal data must be:

• Informed: Employees should be fully aware of how their biometric data will be processed.
• Specific and Clear: Consent must be explicit and recorded clearly.
• Freely Given: Consent obtained under pressure or implied from an employment relationship may not be valid due to the power imbalance between employers and employees.

In an employment setting, employees may feel coerced to provide consent, undermining its validity. Employers cannot assume that the absence of objections equates to free consent.

2. Purpose Limitation and Data Minimization

Organizations must clearly define and disclose the purpose of collecting biometric data, such as attendance tracking. The DPDPA prohibits using more intrusive measures if less invasive alternatives (e.g., access cards or PIN-based systems) are available.

3. Risk of Non-Compliance Without DPIA

The DPDPA requires a Data Protection Impact Assessment (DPIA) for processing sensitive personal data like biometrics, especially when it poses a high risk to the individual’s rights and freedoms. Employers using fingerprint scanners without conducting a DPIA may be in violation of the Act.

4. Security Concerns and Data Transfers

If biometric data is stored or processed by third parties, especially in foreign jurisdictions, the DPDPA’s cross-border data transfer restrictions come into play. Employers must ensure data localization or seek approval for transfers, ensuring equivalent protection in recipient countries. Key Takeaways for Employers

• Evaluate Necessity: Assess whether fingerprint-based timekeeping is essential or if alternatives suffice.
• Obtain Valid Consent: Clearly communicate the purpose, obtain explicit and voluntary consent, and offer alternatives for employees who choose not to use biometric systems.
• Conduct DPIAs: Proactively analyze the impact of biometric data processing to mitigate risks.
• Ensure Secure Data Storage: Safeguard biometric data using encryption and restrict access to authorized personnel only. Penalties for Non-Compliance

Violations of the DPDPA, such as improper consent or lack of a DPIA, can lead to hefty fines and reputational damage. Upholding employees’ rights is not just a compliance requirement but also a step toward building trust and accountability.

Conclusion

Using fingerprint scanners for attendance tracking may seem efficient but poses significant risks under the DPDPA. Employers must carefully evaluate their systems, prioritize less invasive alternatives, and comply with the law to avoid penalties. By adopting a proactive approach, businesses can ensure data protection while fostering a secure and respectful workplace environment