A wide array of employee monitoring software products has emerged on the market. Employee monitoring software may enable employers to manage their employees more efficiently, and to protect their organisational and business interests more effectively. However, the use of employee monitoring software presents novel data protection issues, which must be addressed in order to secure employees’ right to data protection, and avoid breaches of data protection law by employers. This article examines the capabilities of modern employee monitoring software available on the market, and highlights the various data protection issues that may arise from the use of such software. It will also discuss the use of employee monitoring software from a broader policy perspective.