On a side note I recently did a trawl of multiple staff privacy notices as part of a drafting / bench-marking exercise.
Not one of them covered this - but they were all organisations which would have had permitting policies. In practice I think all of them would, at a pinch, be found to have given notice outside the main PN, but possibly omitting the legal basis, and as others have said, probably without formalising the legit interest assessment if that is what they chose.
I agree legit interest is a better basis than contract here for many. Contract may work in areas where the business would not be viable without such monitoring.
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