Data Breach

Meaning & Definition 

A data breach can occur when someone accesses, discloses, or steals data that contains sensitive, confidential, and personal information without the authority to do so. An example of a data breach in HR would include an employee’s or a candidate’s data, such as their Aadhaar number or identification card, bank account information, salary history, and other contact information in an HRMS system.

Importance in HR & Data Security

• Safeguards the employee and applicant’s personal data.
• Prevents money loss, legal action, and reputation damage.
• Ensures the integrity of HRMS, payroll, and recruitment systems.
• Emphasizes the need for strong data security and access controls.
• Supports compliance with the Data Protection Act (and GDPR).

Legal & Regulatory Considerations

• The Digital Personal Data Protection Act 2023 (DPDP Act) mandates data protection and requires organizations to report breaches.
• Information Technology Act 2000 and IT Rules 2011, these laws cover the obligations of organizations to implement security measures and to compensate for negligent data breaches.
• Organizations must have internal policies covering information security and data privacy.
• If a data breach occurs, organizations will have a legal obligation to report the breach to either the affected individuals or the appropriate authority.