Data Privacy in HR
Table of Contents
Data privacy in HR implies safeguarding employee/candidate personal data from unnecessary exposure, abuse, theft, or disclosure. The HR department deals with highly confidential data such as identity proof, financial details, salary history, attendance details, medical history, family information, tax information, exit reports, etc.
In other words, data privacy in HR can be described as the use of personal data for the proper purposes, by the right individuals and maintaining security of records.
Why HR teams need to treat employee data carefully
Employee data is utilized in numerous HR operations. The recruitment team captures resume and identification proofs. The payroll team handles the data related to salary, taxes and banking information. The attendance team tracks shift, leave and presence details. HR teams also maintain documentation for onboarding, perks, performance, disciplinary actions and separations.
However, improper management of such data may pose some risks not only to the employees but also to the organization itself. The employees may be exposed to any risks related to their personal information, whereas the business may experience risks associated with regulatory violations, internal conflicts and exposure to threats.
For the processing of digital personal data in India, the Digital Personal Data Protection Act, 2023 has been enacted. As per this Act, personal data must be processed while acknowledging the right of the person concerned to protect his personal data, as well as the necessity of processing such data for any legitimate purpose.
What HR data privacy covers
HR data privacy does not just mean password protection of files alone. HR data privacy entails the collection, storage, retrieval, sharing, updating, retention, and destruction of employee data.
For instance, the manager requires information regarding team attendance and authorization for leaves, but not salary information. The payroll staff require salary information and tax details, but not interview feedback. The employee can access his/her payslip and other relevant information, but no one else’s information.
It is for this reason that HR data privacy goes hand-in-hand with access control, authorization, audit trail, and secure self-service procedures for employees.
Common HR data privacy risks
HR data privacy problems normally occur due to the overexposure of confidential employee information. They include emailing of salary records, saving employees’ records in unprotected folders, providing extensive access rights to systems, storing old candidate records without any validation, and leaking personal information to third-party vendors without control mechanisms.
In big corporations where HR departments, IT specialists, payroll departments, financial analysts, management, vendor companies, and locations may get involved in working with employees’ records, HR data protection issues become much more serious.
Key takeaway
Data protection in HR ensures that companies safeguard their employees’ trust and have greater control over sensitive information. In human resources, it refers to acquiring minimal data, utilizing the information for specific purposes, controlling the use of the data, securing it and examining the flow of information throughout different processes within the organization.
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