Article by latest.insure
If your SME is using or planning to use electronic surveillance, this article outlines what you need to know to stay compliant. In retail, logistics, and professional services tracking staff can seem like a smart move to reduce theft, lift productivity, or manage off-site work. But is it?
With affordable tech like CCTV, GPS trackers, and AI tools, workplace surveillance is easier than ever to roll out. But just because it’s simple to set up doesn’t mean it’s legally sound. If you get it wrong, your insurance might not cover you.
Surveillance Is Growing and So Are the Compliance Challenges
The COVID-19 pandemic helped accelerate the adoption of monitoring technologies as businesses adapted to remote and hybrid work models. It’s a trend that continues to expand across Australia.
According to University of NSW’s Business School, one in four Australian organisations use employee monitoring software. Meanwhile, PwC reports that nearly two-thirds of workers believe they’re being surveilled, even if they haven’t been formally notified.
The Legal Landscape is Stringent, Fragmented, and Evolving
Australia’s workplace surveillance laws are a patchwork of state, territory, and federal rules, but all require careful compliance.
For example, in New South Wales, the Workplace Surveillance Act 2005 mandates:
- At least 14 days’ written notice before surveillance begins.
- Visible signage for cameras.
- Clear written policies for digital monitoring.
In a key case, the Krav Maga Defence Institute broke the law by secretly installing cameras without telling staff, making the surveillance unlawful.
Victoria’s situation is even more complex. A 2025 parliamentary inquiry found that current laws don’t adequately cover emerging technologies such as facial recognition, AI-based productivity trackers, or neuro-surveillance tools.
The inquiry pushed for dedicated workplace surveillance laws, calling for all monitoring to be “reasonable, necessary and proportionate,” with clear consultation and transparency around data use and storage. The inquiry’s chair said Victoria should take the lead with clear, principles-based legislation.
Remote Work is Not a Legal Loophole
Some SMEs may think remote work is less regulated. However, tracking staff at home, even on work devices, comes with serious legal and ethical risks.
The Law Society of NSW warns that collecting data or recordings without clear consent, even by accident, could breach the Privacy Act or state laws. Over the border, a Victorian inquiry found most private-sector workers have little protection around how surveillance data is stored, used, or sold.
Even Well-Meaning Surveillance Can Cross the Line
Many businesses monitor staff to boost productivity, protect assets, or stay compliant. But without clear policies and written consent, even simple GPS or software tracking can breach privacy laws.
The Victorian inquiry found that excessive surveillance can damage employee wellbeing, raising stress levels and lowering job satisfaction. Monitoring must be transparent, necessary, and proportionate to its purpose.
Insurance Implications: Compliance Is Critical
Surveillance compliance is a legal issue and an insurance one. Breaching workplace surveillance laws may void management liability or employment practices cover.
Insurers are increasingly scrutinising surveillance practices during claims assessments.
Best Practice: How to Protect Your Business
Before installing any surveillance, ensure you’re covering all legal, ethical, and insurable bases. Here’s what we recommend:
- Give formal notice: Provide written notice at least 14 days before starting surveillance.
- Document your policy: Include clear surveillance policies in employment contracts and handbooks.
- Be visible: Use signage and communicate exactly what is being monitored.
- Avoid covert tools: Secretly recording or tracking staff without consent is likely illegal.
- Review your cover: Not all insurance policies automatically cover employment-related claims—check with your insurance broker or adviser.
- The Victorian inquiry also recommends that surveillance be “reasonable, necessary, and proportionate,” and that employers consult with staff and provide transparency about data collection, storage, and use.
Workplace surveillance might seem like a safety net, but if it’s not set up correctly, it could create more headaches than it solves. Make sure you’ve got the right protections in place.
