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DPDP Insights › Manufacturing › Legal department

DPDP for the Legal department in Manufacturing

Reviewed by InfraVeritas360 ResearchFirst published Last reviewed

Sources: DPDP Act, 2023 and DPDP Rules, 2025 (MeitY) · Ministry of Labour and Employment (PIB) · India Code; PRS summary · PIB · Kerala Factories and Boilers Department (copy of the Rules)

Legal holds the contracts and the view on roles in shared flows.

Written for: Legal department, Manufacturing. Open this seat in the interactive tool

What is different here

Factories hold more personal data than most people think: large workforces and contract labour, gate passes, biometrics, medical checks, dealers and distributors, and in some industries, consumers and farmers. Most of it is collected at the gate, the medical centre and the dealer counter, not in head office. DPDP does not change your safety or labour duties. It asks you to know what you hold about each person, keep it safe, use it only for the reason it was collected, and answer when someone asks.

The first four things to sort out

  1. Data schedule for plant contracts.
  2. Role view for fertiliser scheme data.
  3. Consent wording for loyalty.
  4. Retention law list.

A worked example

Legal department

Police ask for a worker's details

  1. Day 1A request comes by phone to the plant.
  2. Day 1Legal asks for a written notice under the law.
  3. Day 3Only the details asked for are shared.
  4. AfterThe request is logged.

Evidence kept

  • Notice
  • Log

Check the power, share only what is asked.

What others in the sector usually do. One schedule across agencies and vendors.

Where it usually goes wrong, by organisation type

Organisation typeHotspots
Chemicals and petrochemicalsWorker health surveillance records; Hazardous goods driver and transporter records; Emergency plan contact lists shared with authorities
FertilisersFarmer Aadhaar authentication at retailer PoS; Farmer lists from meetings and agronomy apps; Dealer and retailer KYC records
Automotive and auto componentsConnected-vehicle location data; Dealer-shared buyer lists; Mechanic loyalty apps
FMCG and consumer goodsContest and promotion entries; Retailer app data; Agency-held consumer lists
Steel, metals and miningTownship and hospital records; Contract labour biometrics; Resettlement records
Cement and building materialsMason loyalty bank details; Driver records; Dealer KYC
Textiles and apparelAuditor access to worker files; Hostel records; Agency-held worker data
Food processing and dairyFarmer payment data; Collection centre registers; Consumer complaint records

8 questions the Legal department asks, answered in full

Farmer Aadhaar authentication at the retailer's PoS: who is responsible for what?

Short answer: The scheme flow is the government's; your own farmer programmes are yours

Subsidised fertiliser is sold through PoS devices at retailers, with Aadhaar-based farmer authentication on iFMS, a government platform built by NIC for the Department of Fertilizers. The scheme decides why farmer identity is collected in that flow. Your company sees sales data from it and supplies the retailers. Treat any farmer-level data you see as personal data, use it only for supply and subsidy work, and never for marketing. For your own farmer meetings, soil testing and agronomy apps, you are the Data Fiduciary with full duties. Get a written legal view on your role.

What the law says

Section 4 needs a lawful basis for each use. Section 6 needs consent for your own programmes. Section 8(1) and 8(5) apply to any data your staff, dealers or vendors handle for you. Section 4 · Section 6 · Section 8(1)–(2) · Section 8(5) · Rule 6 · Section 5 · Rule 3

Steps
  1. Write down which farmer data you see from the scheme, and which you collect yourself.
  2. Limit company dashboards and exports to what supply and subsidy work needs.
  3. Remind dealers and retailers not to keep Aadhaar copies or note numbers in registers.
  4. Give a notice and ask consent in your own farmer apps and meetings.
  5. Keep scheme data and marketing data apart in your systems.
Evidence to keep
  • Written role view
  • Dashboard access list
  • Dealer circular
  • Farmer app notice and consent records
Common mistakes
  • Using scheme purchase data to target offers
  • Retailers keeping Aadhaar photocopies
  • Farmer meeting registers kept for ever

Contract workers, gate passes and biometrics: who is responsible for their data?

Short answer: You are, for data used at your plant; agencies act for you under contract

Your company decides why contract workers' data is collected at your plant: gate access, attendance, safety and the records the Labour Codes ask for. So for that data you are responsible, even when a manpower agency or contractor collects it. Agencies need a contract with data terms. Collect only what the gate and the law need, and delete biometric templates and photos when a worker leaves.

What the law says

Section 7 covers purposes of employment and duties under law. Section 8(1) keeps you responsible for processors. Section 8(7) asks for erasure when the purpose is over. Section 7 · Section 8(1)–(2) · Section 8(5) · Rule 6 · Section 8(7) · Rule 8 · Section 5 · Rule 3

Steps
  1. List what is collected for each contract worker: ID, photo, biometric, bank details, medical fitness.
  2. Remove what the gate and the Labour Codes do not need.
  3. Give a short notice in the worker's language at enrolment.
  4. Add a data schedule to every agency and contractor contract.
  5. Delete templates and photos at exit; keep only the registers the law requires.
Evidence to keep
  • Enrolment field list with reasons
  • Notice in local languages
  • Signed agency data schedules
  • Exit deletion log
Common mistakes
  • Agencies keeping their own copies of Aadhaar cards
  • Templates of workers who left years ago
  • Worker lists shared with contractors on chat groups

What must a vendor contract say about personal data?

Short answer: Yes, every vendor that touches personal data

You stay responsible for what your vendors do with personal data. The contract should say what data they get, for what purpose, the security they must keep, how fast they must tell you about an incident, that sub-contractors need your approval, and how data is returned or deleted at the end.

From your seat: Legal department. Keep a standard data-protection schedule and insist on it.
Example in Manufacturing

Manpower agencies, contractors, canteen and medical centre operators, transporters, loyalty and telematics vendors.

What the law says

Section 8(1) keeps responsibility with you. Section 8(2) allows a processor only under a valid contract. Rule 6 asks for security terms in that contract. Section 8(1)–(2) · Section 8(5) · Rule 6 · Section 8(6) · Rule 7 · Section 8(7) · Rule 8

Steps
  1. List vendors who receive or can see personal data.
  2. Rank them by how much and how sensitive.
  3. Add a data-protection schedule to each contract, starting with the top ten.
  4. Ask for evidence: certificates, test results, deletion confirmations.
  5. Review the top vendors every year.
Evidence to keep
  • Vendor register
  • Signed data-protection schedules
  • Annual review notes
Common mistakes
  • Relying on the vendor's standard terms
  • No incident-notice time
  • No exit and deletion clause

Are we a Data Fiduciary or a Data Processor?

Short answer: Often both, for different data

You are a Data Fiduciary when you decide why and how personal data is used, as you do for your own staff and customers. You are a Data Processor when you handle data only on another organisation's instructions. Many organisations are both, for different data sets.

From your seat: Legal department. Decide the role for each data set and make contracts match.
Example in Manufacturing

Agencies act for you on worker data at your plant. In the fertiliser scheme flow, write down your role.

What the law says

Section 2(i) and 2(k) define the two roles. Section 8(1) puts the duties on the Data Fiduciary, which must use processors only under a valid contract. Section 8(1)–(2) · Section 17(1)(d)

Steps
  1. List each data set you handle.
  2. For each, ask: who decides the purpose?
  3. Mark yourself as fiduciary or processor, and name the other party.
  4. Check that contracts match the role.
  5. Route requests about processor data to the fiduciary.
Evidence to keep
  • Role register by data set
  • Contracts matching the role
Common mistakes
  • Calling yourself a processor for data you use for your own purposes
  • No contract when you act as processor
  • Answering requests that belong to your client

Police, a court or a regulator asks for someone's data. What do we do?

Short answer: Yes, when the request is lawful and in writing

Check that the request is in writing, comes from the right authority and cites the legal power. Share only what is asked for, record what you sent and to whom, and keep the request on file. The Act allows processing to meet a legal duty, but it does not mean sharing everything on a phone call.

From your seat: Legal department. Check the legal power for every request and log what was shared.
Example in Manufacturing

Labour inspectors, factory inspectors, police and crisis groups ask for records. Log each request and the law it uses.

What the law says

Section 7(d) and 7(e) allow processing to meet a legal duty to disclose to the State, or to comply with a judgment or order. Section 17(1)(c) exempts processing for preventing, detecting or investigating offences. Section 7 · Section 8(5) · Rule 6

Steps
  1. Route every such request to Legal.
  2. Check the authority, the legal power and the scope.
  3. Share only what is asked, by a secure method.
  4. Log the request, what was sent, by whom and when.
  5. Tell the person, unless the law or the authority says you must not.
Evidence to keep
  • Authority request log
  • Copies of requests
  • Record of what was sent
Common mistakes
  • Sharing on a phone call
  • Sending whole files when a few lines were asked
  • No log

Can personal data be stored or accessed outside India?

Short answer: Yes, unless a sector rule says otherwise

Under DPDP, yes, unless the government restricts a country, and none had been restricted when this page was last reviewed. A sector rule can be stricter, for example RBI's rule that payment system data must be stored only in India. Remote support access from abroad also counts as data going outside India.

From your seat: Legal department. Track sector localisation rules and add location clauses to contracts.
Example in Manufacturing

Buyers' social audits, parent company HR systems and telematics platforms may hold data abroad.

What the law says

Section 16 allows transfers unless restricted, and keeps stricter sector laws in force. Rule 15 adds conditions on making data available to foreign states. Section 16 · Rule 15 · Section 8(1)–(2)

Steps
  1. List where each system is hosted and where support teams log in from.
  2. Check sector rules for localisation.
  3. Put location and access terms in cloud and vendor contracts.
  4. Keep the list current; new SaaS tools change it quietly.
  5. Tell people in your notice if data goes abroad.
Evidence to keep
  • Hosting and access-location list
  • Contract clauses
  • Sector rule check
Common mistakes
  • Forgetting email, CRM and helpdesk SaaS
  • Ignoring overseas support logins
  • Assuming 'Indian vendor' means 'data in India'

Do we process children's data, and what changes if we do?

Short answer: Check every channel; children often appear where you least expect

Anyone under 18 is a child under the Act. For a child's data you need verifiable consent from a parent or lawful guardian, and you must not track, behaviourally monitor or show targeted ads to children. Some classes and purposes are exempt under Rule 12 and the Fourth Schedule, for example healthcare to the extent needed to protect the child's health, and educational institutions for their educational work.

From your seat: Legal department. Record the Fourth Schedule reasoning for each purpose.
Example in Manufacturing

Product contests and school promotions may reach children. Parent consent and no targeted ads apply.

What the law says

Section 9 sets the duties. Rule 10 explains how to verify the parent. Rule 12 and the Fourth Schedule list the exemptions. Section 9 · Rules 10, 12 · Section 6

Steps
  1. Find where children's data enters: customers, dependants, interns, visitors, scholarships, app sign-ups.
  2. Decide whether an exemption in the Fourth Schedule applies to that purpose.
  3. Where none applies, add an age question and a parent-consent step.
  4. Switch off tracking and targeted ads for under-18 users.
  5. Record the decision for each channel.
Evidence to keep
  • Channel-by-channel note on children's data
  • Parent-consent records
  • Ad and tracking settings
Common mistakes
  • Assuming 'we are B2B, so no children'
  • Using the age 13 or 16 from foreign laws
  • Treating a tick-box from the child as parental consent

The sections you will use most

Other rules that sit alongside DPDP

RuleWhat it saysWhat it means alongside DPDPSource
Labour Codes (in force from 21 November 2025)The Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 came into force on 21 November 2025. Together they rationalise 29 earlier labour laws.Worker and contract labour records now follow the codes and the rules under them. Set retention for these records against the codes and state rules, not against the old Acts.Ministry of Labour and Employment (PIB)
Occupational Safety, Health and Working Conditions Code, 2020Subsumes earlier Acts including the Factories Act, 1948 and the Contract Labour (Regulation and Abolition) Act, 1970. Requires a free annual health examination for employees where prescribed, licences for those hiring contract labour, and registers kept in the prescribed form, electronically or otherwise.Gate passes, attendance, contractor registers and medical checks are legal records. DPDP adds access limits, security and deletion when the legal period is over.India Code; PRS summary
OSH Code: workers in hazardous processesPre-employment, periodic and post-exposure medical examinations are mandatory. Health records are mandatory and accessible to employees and inspectors. Hazardous establishments need an on-site emergency plan and six-monthly mock drills.Health records are among the most sensitive data a plant holds. The worker and the inspector may see them; supervisors and the wider HR team should not.PIB
Manufacture, Storage and Import of Hazardous Chemical Rules, 1989Rule 13: the occupier prepares and keeps up to date an on-site emergency plan, with a mock drill every six months and the report made available to the Authority. Rule 14: the Authority prepares the off-site emergency plan. Rule 15: the occupier informs persons outside the site about the hazard and safety measures.Emergency plans carry names and phone numbers of staff, contractors and authorities. Share them because the law asks, keep them current, and remove people who have left.Kerala Factories and Boilers Department (copy of the Rules)
Chemical Accidents (Emergency Planning, Preparedness and Response) Rules, 1996Set up Central, State, District and Local Crisis Groups. The District Crisis Group reviews occupiers' on-site plans while preparing the district off-site plan. The Local Crisis Group prepares the local emergency plan for the industrial pocket, educates the population likely to be affected and answers public inquiries.Contact lists you give the crisis groups are shared for a legal duty. Send only what the plan needs, through a channel you can show.FAOLEX (text of the Rules)
Direct Benefit Transfer in fertilisers (Department of Fertilizers)Sale of all subsidised fertilisers to farmers and buyers is made through Point of Sale (PoS) devices at retail shops. Beneficiaries are identified through documents such as Aadhaar, Kisan Credit Card or Voter ID. Subsidy is released to fertiliser companies on the basis of actual sales by retailers to beneficiaries.Farmer identity and purchase data move through retailers and a government system. Your company sees part of it. Use what you see only for the scheme and supply work.Department of Fertilizers
Integrated Fertilizer Management System (iFMS)A pan-India digital platform developed by NIC for fertiliser DBT. It includes Aadhaar-based farmer authentication at PoS, captures transactions at manufacturing, import and retail points, and subsidy is released after a sale is recorded at the retailer level.iFMS is the government's system. Company dashboards and exports drawn from it still need access control and logs on your side.National Informatics Centre
Fertiliser (Control) Order, 1985Dealers may sell only under an authorisation letter or certificate of registration (clauses 7 and 8). A retail dealer displays daily stock and prices (clause 4) and issues a cash or credit memo in Form M to the purchaser (clause 5). Records and returns in Form N are kept when the Controller directs (clause 35).Dealer authorisation papers and sale memos are dealer and farmer records. Your dealer KYC files and any farmer details on memos need the same care as other personal data.Government of Odisha (copy of the Order)
CERT-In Directions, 28 April 2022Report specified cyber incidents to CERT-In within six hours of noticing them. Keep logs of ICT systems for a rolling 180 days within India. Sync clocks to NIC or NPL time servers, or servers traceable to them.Applies to plants as well as head office. Keep this clock next to the DPDP breach steps in one plan.CERT-In
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