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The Federal Government's recently proposed privacy reforms will "largely eviscerate the employee records exemption" and put HR practices under a microscope, a lawyer says.

The Attorney-General's Department's Privacy Act Review Report proposes 116 changes aimed at strengthening the protection of personal information and the control individuals have over their information.

Among these are changes to the employee records exemption, introduced with the Australian Privacy Principles in 2014. With some exceptions, this has allowed employers not to comply with the Privacy Act when handling employee records in connection with a current or former employment relationship...