The laws, to be presented by Attorney-General Bob Debus, are the first in Australia to clarify the rights of employees and bosses on workplace emails.

The NSW Law Reform Commission has warned Mr Debus of a worrying trend towards covert surveillance in offices.

In response, Mr Debus will take to Cabinet proposed laws that cover how bosses can conduct both open and covert monitoring of emails.

A draft submission by the commission – a copy of which has been obtained by The Sunday Telegraph – says 75 per cent of companies are already spying on staff.

Because of this, the commission has recommended companies be allowed to conduct covert email surveillance only after obtaining authorisation from the Industrial Relations Commission.

An employer would have to justify secret monitoring.

Justifications include situations where the employee was believed to be breaking the law, was engaged in illegal activity damaging to their employer, or was guilty of sackable misconduct.

Failure to obtain the required authorisation would leave an employer open to criminal charges on the grounds of "unjustified surveillance in the workplace".

But under the laws, companies could undertake overt monitoring of emails provided they informed workers. This could be done in two ways: asking for a worker's consent, or giving them 14 days' notice.

The Sunday Telegraph understands workplaces that have adopted policies advising employees their e-mails can be monitored will comply with the code.

Currently, there are no legal sanctions for employers who spy on emails.

Mr Debus said he would consult Industrial Relations Minister John Della Bosca after he received the Law Reform Commission's final recommendations.

In its report, the commission noted: "The assumption of Internet and email privacy has been shattered with the growing awareness that the very technology making communications easier is also making it easier to spy.

"Perhaps the most disturbing development has been a survey of employers that revealed 75 per cent of Australian companies periodically monitor their employees' emails, usually by covert surveillance."

More than 600,000 NSW workers regularly use the Internet at work.

The NSW Ombudsman found recently that 77 per cent of public authorities and 39 per cent of councils had reported at least one instance of email abuse among employees.

Studies have shown Internet and email abuse usually involves chat rooms and sites promoting pornographic or violent images.

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