PIPEDA: Personal Information Protection and Electronic Documents Act

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Managing Employees' Expectation of Privacy With an Employee Privacy Policy

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Employee Privacy Policies Provide Notice - Without Choice


Employee privacy policies differ from customer privacy policies. Employee privacy policies inform employees about the employer's purposes for the collection, use and disclosure of their personal information, but there is one key difference - there is often no choice. An employee cannot withdraw consent without impacting their employment entitlements, if not their continued employment.

Thus, employee privacy policies inform employees of their privacy rights and of the organization's practices related to the collection, use and disclosure of employee personal information.

PIPEDA is Not Applicable

Organizations looking for legislative guidance when creating employee privacy policies should look to British Columbia and Alberta's Personal Information Protection Act (PIPA). Federal privacy legislation, the Personal Information Protection and Electronic Documents Act (PIPEDA), has limited application with respect to employee personal information, as PIPEDA only applies to employees of Federal Works(*).

This is good news, as both the B.C. and Alberta PIPA take into consideration the unique privacy requirements employers face with respect to employee personal information. PIPA does not require employers to obtain consent from employees for the collection, use or disclosure of their personal information, as long as the purpose is to establish, manage or terminate an employment relationship. PIPA simply requires organizations to notify the employee as to the purposes for the collection, use and disclosure.

Thus, employee privacy policies serve as notification.

(*)Federal Works, Undertakings and Business, as defined in PIPEDA and often referred to as federally regulated organizations includes the Banks, Telcos, Airlines, Transportation companies and all organizations in Canada's territories.

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