By the Pietos Research Desk – June 26, 2025
DPDP Rules for HR in India: What the New Data Law Means for Hiring & Background Verification
Introduction: The Law HR Can’t Ignore:
The DPDP Rules for HR in India are about to transform how organisations handle employee and candidate data. With the release of the Draft Digital Personal Data Protection Rules 2025, HR teams must now rethink how they collect, store, and verify personal information—especially during background verification and hiring processes. The stakes are high, with penalties reaching ₹250 crore for non-compliance.
View the Draft DPDP Rules on MeitY’s Official Site
What Are the DPDP Rules for HR in India?
The Digital Personal Data Protection Act 2023 (DPDPA) sets the foundation for privacy compliance in India. The new 2025 draft rules now fill in the gaps by specifying:
- Breach reporting timelines
- Consent formats and language
- Data retention limits
- Cross-border data transfer policies
- Fines for non-compliance
The law shifts accountability squarely onto employers and their vendors—including background verification (BGV) providers.
Key HR Compliance Requirements Under DPDP Rules
1. Informed, Language-Specific Consent
Employers must obtain clear, written consent in plain language—and in regional languages if operating pan-India.
2. 24-Hour Breach Reporting
Any data breach involving candidates must be reported to the regulator within 24 hours. No grace periods.
3. Purpose-Linked Retention
Candidate documents must be deleted within 180 days of exit unless required by law (e.g., financial or legal recordkeeping).
4. Age Verification for Minors
Hiring interns or apprentices under 18? You must verify age and obtain guardian consent, with proof.
5. Consent Manager API Integration
If you use Aadhaar, facial ID, or biometric data during hiring, integration with a Consent Manager is mandatory.
8. Vendor & BGV Accountability
You remain liable for privacy violations by third-party screeners. Contracts must include flow-down obligations and audit rights—something Pietos already supports.
How DPDP Impacts Background Verification in India
Here’s how hiring workflows will change:
| Traditional BGV Flow | DPDP-Compliant BGV Flow |
|---|---|
| Resume pulled after offer | BGV begins pre-offer |
| Static PDFs stored indefinitely | Data auto-deleted after exit |
| No access logs for reports | Role-based access controls |
| Generic risk flags | Custom risk indicators |
| Limited audit trail | Full digital audit logs |
Encrypted Data Vaults – All candidate artefacts (IDs, education certificates, court records) stored with AES-256 encryption and geo-fenced within India.
- Role-Based Access – Recruiters see only what they need (e.g., employment history) while compliance teams can drill deeper when required.
- Auto-Redaction Engine – Masks PAN/Aadhaar numbers in final reports to minimise exposure.
Result: You get DPDPA-ready background verification without rebuilding your tech stack.
Checklist: Is Your HR Team Ready for the DPDP Rules in India?
- Map Data Flows – Document every touchpoint where candidate or employee personal data enters your system.
- Update Privacy Notices – Align wording with the draft Rule templates; embed on career pages and offer letters.
- Review Third-Party Contracts – Ensure BGV vendors, payroll firms and insurance TPAs adopt equivalent controls.
- Enable One-Click Consent Withdrawal – Use verified Consent Managers or your HRIS provider’s API.
- Train Recruiters & Hiring Managers – No unofficial résumé hoarding on personal drives.
- Appoint a DPO-HR – Even if not yet mandatory, early designation speeds incident response.
- Pilot Privacy-First BGV with Pietos – Cut verification TAT while staying compliant.
Final Thoughts: Turn Compliance into a Competitive Advantage
DPDP Rules for HR in India aren’t just a legal burden—they’re an opportunity. Organisations that lead with trust, transparency, and compliance will not only avoid penalties but also attract stronger talent in an era where candidates care about how their data is used.
Want to See What DPDP-Ready BGV Looks Like?
Book a 15-minute demo with us and discover how Pietos makes compliant hiring effortless.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult your legal counsel for specific guidance.
