Learn about the legal limits on employee monitoring for an Italy-based company with remote workers in the EU. Understand what monitoring practices are permissible under EU privacy and data protection regulations.
Table of Contents
Question
Gentle Hedgehog Inc. is a privately owned website design agency incorporated in Italy. The company has numerous remote workers in different EU countries. Recently, the management of Gentle Hedgehog noticed a decrease in productivity of their sales team, especially among remote workers. As a result, the company plans to implement a robust but privacy-friendly remote surveillance system to prevent absenteeism, reward top performers, and ensure the best quality of customer service when sales people are interacting with customers.
Gentle Hedgehog eventually hires Sauron Eye Inc., a Chinese vendor of employee surveillance software whose European headquarters is in Germany. Sauron Eye s software provides powerful remote-monitoring capabilities, including 24/7 access to computer cameras and microphones, screen captures, emails, website history, and keystrokes. Any device can be remotely monitored from a central server that is securely installed at Gentle Hedgehog headquarters. The monitoring is invisible by default; however, a so-called Transparent Mode, which regularly and conspicuously notifies all users about the monitoring and its precise scope, also exists. Additionally, the monitored employees are required to use a built-in verification technology involving facial recognition each time they log in.
All monitoring data, including the facial recognition data, is securely stored in Microsoft Azure cloud servers operated by Sauron Eye, which are physically located in France.
What monitoring may be lawfully performed within the scope of Gentle Hedgehog’s business?
A. Everything offered by Sauron Eye’s software with the exception of camera and microphone monitoring.
B. Everything offered by Sauron Eye’s software, assuming employees provide daily consent to the monitoring.
C. Only video calls conducted during business hours and emails that do not contain a “private” or “personal” tag.
D. Only emails, website browsing history and camera for internal video calls that are expressly marked as monitored.
Answer
According to EU privacy and data protection law, only a limited scope of employee monitoring would be lawful for Gentle Hedgehog Inc. in this scenario:
The correct answer is: D. Only emails, website browsing history and camera for internal video calls that are expressly marked as monitored.
Explanation
- Continuous, secret monitoring of employees via cameras, microphones, screen captures, keystrokes, etc. is not permitted. Monitoring must be limited, transparent, and for legitimate purposes.
- Requiring daily consent from employees does not make extensive secret surveillance lawful. Consent is not a valid legal basis in this context due to the imbalance of power between employers and employees.
- Monitoring of clearly private spaces and communications, such as private emails, is prohibited. Only monitoring of expressly work-related activities is allowed.
- Facial recognition for login verification requires a Data Protection Impact Assessment (DPIA) and likely special safeguards given the sensitivity of biometric data under the GDPR.
- Engaging a China-based vendor adds complexity around international data transfers outside the EU. Standard Contractual Clauses and additional safeguards would be needed.
In summary, while some limited, transparent monitoring of work activities and communications may be justifiable, the extensive employee surveillance proposed by Sauron Eye’s software would violate multiple provisions of the GDPR and EU privacy law if used by Gentle Hedgehog for its workforce spread across the EU. The company should consult with legal counsel to devise a more targeted, privacy-friendly approach to improving productivity that respects employees’ rights.
IAPP CIPP-E certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the IAPP CIPP-E exam and earn IAPP CIPP-E certification.