Employers hold a significant amount of personal information about their employees. This can include details such as name, address, date of birth, and employment history. It is essential that employers understand their responsibilities when it comes to disclosing this information to third parties.

Under normal circumstances, an employer should only disclose an employee’s personal information to third parties for the purpose that it was originally collected, or for a closely related purpose that the employee would reasonably expect. This means that employers should seek the employee’s consent before sharing their personal information with any third party.

However, there are situations where an employer may be required to disclose personal information to a third party without the employee’s consent. One such situation is when a government agency requests personal information relating to an employee.

For example, the Australian Tax Office (ATO) has the power to request personal information from employers to ensure compliance with tax laws. In such cases, employers must be sure that the agency requesting the information has the power to do so. Employers can verify this by asking the agency what law allows them to make the request for the information, conducting research, or seeking professional guidance.

When required by law, employers must provide the requested information to the government agency requesting it. Failure to do so may result in penalties or legal action against the employer. Therefore, it is essential for employers to understand their obligations and to have systems in place to manage requests for personal information.

It is worth noting that in some circumstances, an employer may disclose personal information without consent if it is necessary to prevent or lessen a serious and imminent threat to the life or health of an individual. However, this is a narrow exception and should only be used in extreme cases.

In summary, employers should only disclose personal information to third parties for the purpose that it was originally collected or a closely related purpose that the employee would reasonably expect, and only with the employee’s consent. If a government agency requests personal information, employers must be sure that the agency has the power to make the request and provide the information when required by law. Understanding these obligations is essential for employers to ensure compliance with privacy laws and to protect their employees’ personal information.