Electronic monitoring policy: A complete guide for Canadian employers

Creating a workplace that’s both productive and trusting requires a delicate balance of transparency, communication and legal compliance. As a Canadian employer, you’re navigating a complex landscape of privacy laws and employment standards. This guide will help you understand the requirements for electronic monitoring, especially with Ontario’s new legislation and provide the tools to build a compliant and transparent policy.

While the requirements vary, ensuring you have a clear, well-communicated policy is essential for building trust with your employees and avoiding legal trouble. This guide is for employers, HR professionals and managers who need to understand and implement a legally sound electronic monitoring policy.

What is an electronic monitoring policy?

An electronic monitoring policy is a formal document that informs employees whether and how their activities may be monitored by the company. It’s not just a best practice,in Ontario it’s a legal requirement for many employers.

The Ontario Employment Standards Act (ESA) defines electronic monitoring as “all forms of electronic monitoring of an employee.” This can include a wide range of activities, such as:

• GPS tracking of company vehicles or mobile devices.
• Email and instant message monitoring to ensure appropriate use and content.
• Keystroke tracking and internet activity to measure productivity or enforce security protocols.
• CCTV (closed-circuit television) surveillance in the workplace.

A common misconception is that if you don’t monitor employees, you don’t need a policy. However, under Ontario law, even employers who do no monitoring must still have a policy that explicitly states this fact.

Who needs an electronic monitoring policy in Canada?

The requirement to have a policy is not universal across Canada, but privacy laws in every province and territory affect how employers can monitor their workers.

Ontario’s specific requirements

In Ontario, you must have a written electronic monitoring policy if you have 25 or more employees as of January 1 of any given year.

• Counting employees: The 25-employee threshold is based on the number of workers employed on January 1 of the year. This includes full-time, part-time, casual and seasonal employees.
• Multiple locations: If your company operates in multiple locations, you must count all employees across all locations.
• Related employers: The ESA has specific rules for related employers that may require them to be treated as a single employer for the purposes of the 25-employee threshold.
• Temporary help agencies: Both the agency and the client business may have obligations under this law.

Other Provinces and Territories

While no other province has an explicit requirement to have a policy, all Canadian employers are subject to federal or provincial privacy laws. These laws require employers to be transparent about what information they collect, why they’re collecting it and how they will use it.

Province/Territory	Explicit Policy Requirement?	Relevant Privacy Legislation
Ontario	Yes (25+ employees)	Employment Standards Act, 2000
Alberta	No	Personal Information Protection Act (PIPA)
British Columbia	No	Personal Information Protection Act (PIPA)
Quebec	No	Act respecting the protection of personal information in the private sector
Federal	No	Personal Information Protection and Electronic Documents Act (PIPEDA)
Other Provinces	No	Provincial/territorial privacy laws and common law principles apply

What your policy must include (Ontario ESA requirements)

For Ontario employers, the ESA is very specific about the content of your electronic monitoring policy. Your policy must include:

• A statement on whether electronic monitoring is conducted. You must clearly state if you monitor employees electronically.
• A description of how and in what circumstances electronic monitoring may occur. This includes details on the types of monitoring (e.g., GPS, email) and when they take place (e.g., on company devices, during work hours).
• The purposes for which the information collected may be used. Be specific about why you are monitoring (e.g., to ensure compliance, for productivity, for safety).
• The date the policy was prepared and the date of any updates. This demonstrates that your policy is current and compliant.
• A statement that the ESA does not limit an employer’s ability to use information collected through electronic monitoring. This is a mandatory legal statement.

Ontario policy checklist: 

• Does the policy state whether monitoring occurs?
• Does it describe how and when monitoring takes place?
• Does it outline the purposes of the monitoring?
• Does it include the preparation/update date?
• Does it include the mandatory ESA statement?

How to create an electronic monitoring policy (step-by-step)

Creating a policy can seem daunting, but breaking it down into a clear process makes it manageable.

1. Assess your monitoring practices: Take an inventory of all the tools, devices, and software your company uses that could be considered electronic monitoring. This includes GPS trackers in vehicles, CCTV cameras, email filtering software and systems that monitor internet usage.
2. Clarify the purposes: For each type of monitoring identified, determine the legitimate business purpose. Is it for safety, productivity, legal compliance or something else? Being clear about the “why” is crucial for both legal compliance and employee trust.
3. Draft ESA-compliant language: Write the policy content, ensuring it includes all the required elements for Ontario.
   • If you do monitor: “The Company conducts electronic monitoring of employees in the circumstances described in this policy.”
   • If you do not monitor: “The Company does not conduct any form of electronic monitoring of employees.”
4. Review privacy obligations: In addition to Ontario’s ESA, check how your policy aligns with relevant privacy laws like Alberta’s and BC’s PIPA or the federal PIPEDA. These laws require you to be transparent and reasonable in your monitoring activities.
5. Plan for communication and distribution: The ESA requires you to provide a copy of the policy to all employees within 30 days of its creation or update. This can be done via email, hard copy, or a company intranet. You must also give a copy to any new employees within 30 days of their start date.
6. Maintain records: Keep a record of when and how you distributed the policy. This documentation is essential in case of a compliance audit.

Electronic monitoring policy template download

Here’s a preview of the letter template you can download and customize based on your requirements:

Best practices for implementing your policy

Compliance is about more than just a document. How you implement and communicate your policy is just as important as its content. Here are some best-practice considerations when implementing your policy:

• Communicate transparently: Hold meetings or send out a company-wide memo explaining why the policy is being introduced. Explain the purpose of any monitoring and what is and isn’t being tracked.
• Train managers and supervisors: Ensure that all people leaders understand the policy and can answer employee questions accurately.
• Document justifications: Keep a record of the business reasons behind your monitoring practices. This can be helpful if you ever need to justify your actions.
• Address employee questions and concerns: Be open to feedback and be prepared to explain the policy clearly. This builds trust and shows respect for your employees’ privacy.
• Balance compliance with culture: A good policy is one that balances the company’s need to operate safely and effectively with a culture of trust and respect.

Get started with building a culture of transparency and trust

A strong electronic monitoring policy is an essential tool for any Canadian employer, especially in Ontario where it is a legal requirement. It’s about more than just legal compliance; it’s about fostering a culture of transparency and trust.

By proactively creating and communicating a clear policy, you establish expectations for both the company and your employees. This minimizes misunderstandings, reduces the risk of legal disputes and demonstrates your commitment to respecting employee privacy while maintaining a safe and productive workplace. Whether you conduct extensive monitoring or none at all, having a well-drafted policy is a fundamental step toward responsible and effective business management in the modern digital age.

The information in this template is current as at 1 August 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The content is general information only, is provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this template. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this template.