Checklist · Privacy, Data Protection & Cyber

Employee records exemption: assessment checklist for a planned use of staff information (Privacy Act s 7B(3))

Checklist for advising whether a private sector employer’s planned handling of staff information is exempt under s 7B(3): is it the employer, is the person a current or former employee, is the record an employee record, and is the act directly related to the employment relationship and that record.

Kind
Checklist. Steps or checks to work through and tick off.
Where it applies
Australia
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
18 October 2026
Status
Maintained. Checked on 18 October 2026 against the 2 authorities it cites, for Australia.
Version
1
Source
Written for this library

When to use it

Use before an employer relies on the employee records exemption for a new use of staff information, such as analytics, AI tools, monitoring, sharing with a related company or a vendor, or disclosure in a sale of business. Agencies, contractors, job applicants and volunteers fall outside the exemption. Workplace surveillance and state laws are separate.

Used for these tasks

Each task page says how far AI may help with the task and what the lawyer must review.

How AI may be used

AI may map the planned use and the data fields involved against the checklist and list each point that needs a decision; the lawyer decides whether each element of s 7B(3) is met for each data flow.

AI may

  • List the data fields, sources, recipients and purposes of the planned use from the project documents
  • Mark which individuals are current or former employees and which are contractors, applicants or others
  • Match each data field to the examples in the definition of employee record for the lawyer to consider

AI must not

  • Must not conclude that the exemption applies to a data flow
  • Must not treat disclosure to a related company, vendor or purchaser as an act of the employer without the lawyer’s analysis
  • Must not process staff records in a tool outside the employer’s approved environment

The lawyer checks

  • The person handling the information is the employer (not a related company, recruiter or vendor acting on its own account)
  • Each individual is a current or former employee, and each record is an employee record within the s 6 definition
  • Each act is directly related to the employment relationship and to the employee record, and not merely to the employer’s other business purposes
  • Other obligations have been checked: workplace surveillance laws, the Fair Work Act, health records laws, tax file number rules and the employment contract

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

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