The larger your employer the more likely it that you are monitored... Most employers are either upfront about it, or it should be obvious. If the Boss is a Jeebus Freak, or runs around timing your bathroom breaks, he prob monitors your PC.
If they are going to start secret monitoring they often telegraph this to the staff... if upper management starts carping about "wasted time" or some new vendor comes in to "upgrade" your PCs, but no new hardware is bought...
Some companies will turn a blind eye to abuses as long as cash flow is good, but if they need to lay off people, they can save a fortune in unemployment tax by suddenly enforcing policies and firing people for cause.
Also it is not just your Boss you need to worry about. Your peers might spy on you to save their own asses or even your underlings might try advancement by character assassination.
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