Privacy in the Workplace: The Effects of the Privacy Act 1993 on Employment Practices in New Zealand

Abstract

This paper discusses the impact of the Privacy Act 1993 on the workplace, particularly with reference to the obligations relating to the collection, storage and use of information on employees gathered by employers and the policies employers establish to meet these obligations. The paper reviews, in general terms, the nature of the requirements the Act places upon employers and the extent to which employers have met these requirements. The implications for the treatment of particularly sensitive issues in the workplace—testing for recreational drug use by employees, performance reviews and assessments for example—are explored. This is achieved by a review of provisions related to privacy in collective employment contracts and by an analysis of how a number of important New Zealand corporations have dealt with the requirements of the Act. This analysis is conducted in two parts; through interviews with senior human resource management practitioners, and an independent assessment of the policies that these companies have in place for dealing with privacy issues in the workplace. The paper offers an appraisal of employers handling of the privacy of information requirements of the Act and suggests areas and issues requiring greater attention from employers and policy makers.