Last updated February 2, 2024
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What is an Employee Privacy Policy?
An Employee Privacy Policy outlines how an employer collects, stores, and discloses employee personal information. Employers create a privacy policy to protect employees and inform them how their personal data is protected.
Instead of being individualized for a single employee, an Employee Privacy Policy is created to address all employees within a company.
As an employer, our template allows you to customize it to your needs based on your company’s location, industry, and any other additional terms you see as relevant.
An Employee Privacy Policy is also known as a/an:
- Employee privacy statement
- Workplace privacy policy
The following information is included in an Employee Privacy Policy:
- The name of the company or organization
- A description of what data and information the company may collect, such as identifiers, contact details, and medical information
- Purposes for which the company uses employee data
- How the employee’s data is stored, and for how long
Why is it important to have an Employee Privacy Policy?
An Employee Privacy Policy is a necessary document for employers because it helps them achieve the following:
- Legal compliance: Employers have legal obligations regarding employee privacy. Having an Employee Privacy Policy demonstrates their commitment to complying with the relevant laws and regulations.
- Transparency and trust: Having an Employee Privacy Policy shows that an employer cares about its staff which can help foster a positive workplace culture and create trust.
- Risk management: With an Employee Privacy Policy, employers can reduce the risk of data breaches, cyber-attacks, and other privacy-related incidents that could result in legal liabilities
Besides having an Employee Privacy Policy, companies with websites should create a Website Privacy Policy outlining how they use customer or client data they collect online.
To further protect customer information, employers can have staff sign Confidentiality Agreements that require them not to disclose or share sensitive data.
What laws govern employee privacy in Canada?
In most of Canada, under the Personal Information Protection and Electronic Documents Act (PIPEDA), companies must get an individual's consent before collecting, using, or disclosing their personal information.
Additionally, individuals have the right to access their personal information held by an organization, as well as the right to contest its accuracy. Information collected under PIPEDA can only be used for the reasons it was collected.
Note that some provinces do not directly follow PIPEDA but have their own laws.
Generally, employers can only disclose personal information if employees give their written consent. However, there are some exceptions to this rule. Employers may not have to get written consent in the following situations:
- If the information is required by a court of law
- If it is needed for administrative purposes (e.g., for the registration of pension, health insurance, and disability benefits)
- If there is an emergency or a health risk to the employee or employer
- If a third party manages the employee and that third party is privy to the employee's information
These exceptions are generally permitted by law. However, you can also choose to inform your employees of these exceptions by adding them to your Employee Privacy Policy with our customizable template as additional clauses.