The Vancouver Province reports that UBC is going to court to fight a B.C. Privacy Commissioner order that ruled against their use of computer monitoring software to track employee Internet usage.
UBC Fights for the Right to Monitor Employees
October 25, 2007
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Law Bytes
Episode 279: My Keynote on Digital Sovereignty: Control, Choice, and Connection
byMichael Geist

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If company tracks employee’s traffic then, i think, an employee is supposed to aknowledged of this.
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employee web monitoring
In my opinion, I guess it’s just okay to use this types of monitoring software for the advantage of both the employee and employer. Here’s a related topic to it:
monitor your employees Internet usage
employee web monitoring
http://www.timedoctor.com/blog/2010/11/18/how-to-successfully-monitor-your-employees-internet-usage