Employee Biometrics In India: Privacy Concerns And Legal Safeguards
Introduction:
Biometric data, derived from unique physical traits like fingerprints, voiceprints, iris scans, and DNA, is widely used for identification due to its precision[1]. The increased use of biometric systems in the Indian workplace for reasons like attendance management, security, and access control (in the form of fingerprint scanning or facial recognition) can produce enhanced efficiency and minimize issues of fraud. However, collecting and processing employees’ biometric information generates significant and relevant legal and ethical issues, particularly regarding personal privacy and data security of employees. In India, employees have rights over their personal information that imposes strict compliance obligations with data protection laws. Employers are obligated to take reasonable and justifiable measures when processing employees’ biometric information in order to reasonably secure it from misuse or loss of data. Legal obligations may be serious in nature and carry heavy penalties, such as damages or fines or influence reputational costs.
Table of Contents
Ethical and Privacy Concerns of Using Biometrics in the Workplace:
The integration of biometric technology in workplaces has raised significant ethical and privacy concerns[2]. Although biometric authentication increases security and makes access control easier, it also introduces the risks of data privacy, consent, surveillance, and potential misuse. Organizations need to balance their need for security and the employees’ right to privacy and ethical treatment. One of the most significant ethical issues is informed consent.
Employees must be informed of the type of biometric data that is being collected, its intended purpose, and who will have access to it. In many situations, however, consent is given out of formality rather than true consent, as many employees may feel obligated to comply with biometric policies to be retain employment. Also, biometric data are irreplaceable like a password since it is a part of you, making acquiring clear voluntary consent necessary. Lack of transparency concerning data collection and storage create additional legal and ethical problems and prohibitions concerning unauthorized use.
Another major concern is data security and privacy risks. Because biometric data is immutable, it cannot be changed or reset, like a typical password, when stolen. An organization’s database of biometric information, can expose employees to identity theft, fraud and unwarranted surveillance. Cybercriminals can also use stolen biometric information to launch spoofing attacks that circumvent attempts at authentication, using deepfake technology, AI-generated voice mapping or fingerprint duplication. Biometric databases must be encrypted and stored securely to mitigate unauthorized access; still, even state-of-the-art technology cannot guarantee to be completely secure.
The absence of a common standard for security and privacy within specific industries creates uncertainty regarding how organizations will manage biometric data and protection. In addition, the intrusive nature of surveillance systems and extreme monitoring of employees raises additional ethical concerns. Employers may utilize a biometric system not just for security purposes, but also for tracking productivity and attendance, or tracking behavioral patterns. Excessive monitoring can leave employees feeling violated and distrustful; in other words, feeling as though they are under constant observation. This kind of monitoring can create undue psychological stress and contribute to a poisonous company culture, as employees feel they are under constant pressure to complete work to unreasonable expectations of productivity. Additionally, facial recognition software has shown racial bias which can create ethical issues regarding discrimination and treating employees unfairly in workplaces that allow their decisions to be made based on an algorithm.
A key issue is whether biometric data is collected secretively or non-consensually. Some businesses are utilizing facial recognition, eye-tracking, or behavioral biometrics to track employees’ movements unobtrusively, not permitting the employees’ prior knowledge or consent to such data collection. In some situations, the biometric data is shared with third-party vendors and even law enforcement officials. Again, that data is being used without the employee’s permission and violates acceptable ethical standards.
When it comes to these situations, employees are not in a position to “opt-out” of data collection or exert control of their personal data. Legal and ethical compliance is another significant factor in biometrics. Biometric use raises serious ethical and privacy questions surrounding consent, risk of data security, life-long surveillance and potential for discrimination. Organizations have an obligation to address these safety and ethical and privacy issues with real policies and procedures, encrypt the data, obtain informed consent from employees, and evaluate the legal and ethical implications regularly. A viable proportional approach can allow a business to benefit from the substantial advantages that biometrics can provide, while protecting employee’s rights and maintaining trust in the workplace.
Laws Safeguarding Biometrics:
Legal considerations in India apply to collecting and using biometric data, such as collecting employee fingerprints, face recognition, and iris scans, in a manner that protects privacy and security. There are a number of laws related to collecting, processing, and storing biometric data, including: Information Technology Act, 2000 (IT Act) and IT Rules, 2011, Digital Personal Data Protection Act, 2023 (DPDP Act), and the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (Aadhaar Act). These statutes outline the obligations of the employer, as well as the rights of the employee, in all dealings with biometric data. The IT Act, 2000, the parent statute, concerns primarily data protection in India. Of particular concern, Section 43A of the IT Act imposes obligations on the employer such that a biometric data can only be utilized after an employer has applied reasonable security practices to store or process the biometric data. If an employee suffers an injury due to misappropriation of the biometric data, the employee may claim damages resulting from such use.
Under the IT (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, biometric data is classified as Sensitive Personal Data (SPD). Employers must obtain explicit consent before collecting biometric data and inform employees about its purpose, storage, and security measures. Organizations must also implement strong security protocols, such as encryption and access control, to prevent unauthorized use of biometric data.
The DPDP Act is India’s main data protection legislation that replaces the out-dated IT Rules. The DPDP Act recognises biometric data as Personal Data, and it must be processed lawfully, fairly, and transparently. Employers must seek explicit and informed consent from an employee prior to processing their biometric data. Employees have the right to withdraw that consent, and once the consent is withdrawn, the employer must stop processing the biometric data immediately. The Act contains strict obligations around retention of data and security measures. Biometric data may only be held for as long as is reasonable, and once the specific purpose has been fulfilled, it must be securely erased. Employers are obliged to have adequate security measures to prevent unauthorized access, breaches or misuse. Employees also have the right to access and amend their biometric personal data and to request it be erased. If the employer fails to comply with these processes, the employee may lodge a complaint with the Data Protection Board.
The Aadhaar Act of 2016 governs the collection and use of Aadhaar biometrics any fingerprint or iris scan. Aadhaar authentication is limited to government subsidies and services, and it does not allow private employers to require Aadhaar biometrics as part of employment eligibility verification or attendance, or payroll practices. The Act prohibits unauthorized use, sharing, and/or storage of Aadhaar biometric data. Employers are obligated to secure any Aadhaar data voluntarily provided by employees.
At workplaces employees must provide free and informed consent to the collection of biometric information and employers cannot require employees to collect biometrics. Employees also have the right to withdraw consent and demand their employers permanently delete, anonymize, or deidentify any data collected from them, with reasonable alternative means of authentication provided, through an ID badge, for example. Employers are responsible for securing stored biometric data collected using encryption and security measures. If biometric data is misused, employees are entitled to make a complaint to the Data Protection Board or seek any compensation allowed under the IT Act.
Conclusion:
The use of biometric data in workplaces in India affords benefits and drawbacks. Biometric data is implemented to increase security and efficiency pertaining to employees, but raises legal and ethical issues involving privacy, consent, and data management. Legal instruments in India, such as the IT Act, DPDP Act, and Aadhaar Act, effectuate and encompass a legal framework to regulate the collection and utilization of biometric data, such that the rights of employees are upheld.
Employers can mitigate legal and ethical risks by ensuring informed consent from employees, having appropriate data practices in place for the protection of data, and offering other alternatives to the use of biometrics for employee identification. Employees should know that they have rights to privacy, data protection and remedies for misuse. Arguably an effective approach is to consider how to engage and maintain a proper balance between employee rights and workplace security concerns, while continuing to optimize the utility biomarkers provide, gain from legal compliance and ethical obligations, while building trust, preserving privacy, and enjoy transparency in the workplace.
[1] BC Civil Liberties Association (2019) Biometrics: Legal, Ethical and Policy Challenges. Available at: https://bccla.org/wp-content/uploads/2019/02/Biometrics.pdf (Accessed: 28 March 2025).
[2] Observer Research Foundation, 2024. Ethical and Regulatory Considerations in the Collection of Biometric Data. [online] Available at: https://www.orfonline.org/research/ethical-and-regulatory-considerations-in-the-collection#_edn99 [Accessed 28 March 2025].
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