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Wednesday, May 20, 2026

Australian privacy law reforms 02: how proposed changes to the ... - Clayton Utz

The treatment by private sector organisations of the personal information of current and former employees in their employee records is presently exempt from the majority of the obligations contained in the Australian Privacy Principles (APPs). That could be about to change as the Attorney General's report on the review of the Privacy Act flags significant amendments to the scope and effect of this "employee records exemption".

Any significant abrogation of the "employee records exemption" would require a significant rethink as to the handling of the personal information of current and former employees.

Current state of the law on employee records

A private sector organisation is exempt under section 7B(3) of the Privacy Act from having to comply with many of the APPs when dealing with their current and former employees' personal information. This exception for private sector organisations created a gap that was supposed to be (but was not) filled by State and Territory workplace relations legislation. There is no equivalent exemption for public sector agencies.

To fall within the employee records exemption, the personal information in question must directly relate to:

  • a current or former employment relationship between the employer and the individual (but not prospective employees); and
  • an "employee record" held by the organisation and relating to the individual.

An "employee record" is defined by section 6(1) of the Privacy Act as being a record of personal information...



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