Barclays could face big fine for ‘spying’ on staff

BARCLAYS could face an investigation by the data watchdog over its use of software to spy on staff, putting it at risk of a fine of up to £865m in a fresh blow for the beleaguered bank.

The lender has passed details to the Information Commissioner’s Office (ICO) following a backlash after it switched on technology that allowed managers to track how long staff were spending away from their desks.

Regulators are reviewing the case but the ICO has not yet said whether it plans to launch a formal investigation. Although businesses often have legitimate interests in monitoring staff productivity, Barclays could be fined up to 4pc of its £21.6bn turnover if it is found to have breached data protection laws, privacy lawyers said.

It piles further pressure on the lender and its boss Jes Staley, who was left fighting for his job last week when it was revealed City regulators were examining whether the bank properly described his relationship with the late sex offender Jeffrey Epstein.

The ICO review was sparked by Barclays’ use of “big brother” software from tech firm Sapience, first reported by City AM. The bank monitored staff for up to 18 months anonymously, then switched on a function this month letting managers identify individuals’ activity for a trial. Barclays turned off the feature this week after a backlash from staff and privacy campaign groups.

Legal experts said any fine was likely to be far below the maximum because of the number of staff affected. The bank declined to comment.