Employee Tracking Software in India: Legal and Ethical Considerations

After the IT Act 2000, it also became legal to use employee monitoring software in Indian businesses. However, to what extent? Despite the various advantages it provides, organizations must be aware of the legal and ethical considerations of using employee tracking software.

What is Employee Tracking Software?

Employee management software or application tools are specially designed solution packages with features to track employee activity and boost performance levels. The software provides many benefits to organizations including increased focus, efficiency, and productivity.

Furthermore, the cost-effective tool also saves you expenses and gets you more ROI, which ultimately leads to more success and growth. However, to use the software in India, organizations must consider the legal and ethical considerations.

Employee Monitoring: A Brief on The Rules in India

In India, the use of Employee Project Time Tracking Software comes under the Information Technology Act 2000. The act allows you to monitor your employees as long as there is any legal business intent.

However, it’s essential to remember that any form of employee monitoring that is hindering the staff’s privacy and personal space is illegal. Furthermore, you should also remember that:


  • You must have a clear and documented workplace policy.
  • Any restrictions can only be applied during the work hours.
  • You must inform your employees if you are monitoring emails.
  • Please note that video monitoring employees is legal. However, eavesdropping on conversations is not.
  • You must have employees consent before implementing the software and they must have a transparent view of the monitoring extent.

Ethical Considerations of Employee Tracking Software

Can employee tracking software and ethics co-exist together? This is the question that has been troubling many industry experts. The answer is, yes, they have to. In India, there are strict ethical rules on employee monitoring.


  • You cannot hinder the privacy and personal space of your employees.
  • You must ensure that your employees are aware of the tracking software.
  • Monitoring employees by any means after work hours is unethical and illegal.
  • There must be transparency between employers and employees before using employee tracking tools.

The Pros and Cons of Employee Tracking Software

Like anything else in this world, there are also some advantages and disadvantages of using employee tracking software. Organizations wishing to implement tracking tools must be aware of these for hassle-free employee monitoring.


You will enjoy these benefits over your competitors.

  • The comprehensive features of the software help boost productivity.
  • Employees put in more effort when they know they are being constantly monitored.
  • Performance reports let managers and employers identify employee strengths and weaknesses. Likewise, you can replace or train unproductive employees.
  • It’s a cost-effective way to track resource usage.
  • The data security feature also prevents insider threats and data leakages.


Organizations must also be aware of the cons of using employee tracking software.

  • Some employees may feel trust issues due to constant employee monitoring. This can decrease the performance levels.
  • Since there is unlimited access to employees’ personal and work-related information, it can be misused.
  • It can take time to break down employee activity.


With only a few cons, employee monitoring applications are the most useful tools for organizations to monitor employee activities and boost performance. As long as you are legally using it and understand the legal boundaries of employee tracking, you are good to go.


Using employee Time Tracking Software in India can give businesses and organizations many advantages including enhanced employee productivity. However, despite that, employers must follow the legal and ethical practices of employee monitoring. Furthermore, being aware of the cons of using employee tracking software is also essential for hassle-free monitoring. Want an employee monitoring tool with no disadvantages? We recommend DeskTrack.

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