Employees typically must relinquish some of their privacy while at the workplace, but how much they must do so can be a contentious issue. The debate rages on as to whether it is moral, ethical and legal for employers to monitor the actions of their employees. Employers believe that monitoring is necessary both to discourage illicit activity and to limit liability. Although, with this problem of monitoring of employees, many are experiencing a negative effect on emotional and physical stress including fatigue and lack of motivation within the workplace. Employers might choose to monitor employees activities using surveillance cameras, or may wish to record employees activities while using company owned computers or telephones. Courts are finding that disputes between workplace privacy and freedom are being complicated with the advancement of technology as traditional rules that govern areas of privacy law are debatable and becoming less important.

Europe

The EU Directive 95/46/EC

Directive 95/46/EC on the protection of personal data

The Data Protection Directive is a European Union directive which regulates the processing of personal data within the European Union...

 on the protection of individuals with regard to the processing of personal data and on the free movement of such data limits and regulates the collection of personal information on individuals, including workers. Firms that monitor employees' use of e-mail, the internet or phones as part of their business practice, and do not tell employees or have not obtained employee consent to do so, can in most cases be sued under Article 8 the European Convention on Human Rights which provides for the right to respect for his private and family life. On the other hand, although EU law is clear that e-mail interception is illegal, the law is not totally clear as to whether companies may prohibit employees from sending private e-mails.

United States

In the United States, the situation is quite different.
In 2005 for example, a survey of more than 500 U.S. companies found that over half had disciplined and about one in four employers had terminated (fired) an employee for "inappropriate" use of the internet, such as sending an inappropriate e-mail message to a client or supervisor, neglecting work while chatting

Instant messaging

Instant Messaging is a form of real-time direct text-based chatting communication in push mode between two or more people using personal computers or other devices, along with shared clients. The user's text is conveyed over a network, such as the Internet...

 with friends, or viewing pornography during work hours.

The tools that are used for this surveillance are often caching proxy server

Proxy server

In computer networks, a proxy server is a server that acts as an intermediary for requests from clients seeking resources from other servers. A client connects to the proxy server, requesting some service, such as a file, connection, web page, or other resource available from a different server...

s that are also used for web-monitoring.