Technological developments in the 21st century have changed society, and as a resulttransformed working life. Various types of surveillance systems, mobile technology anddigitalization enables employers to monitor employees in the pursuit of increased efficiency.These developments, however, introduce complex legal and ethical challenges. The increasedaccessibility of employee monitoring, raises concerns surrounding the employees’ right toprivacy and personal liberty.The purpose of this study is to examine the legal balance between the employer’s managerialprerogative and the employee’s right to privacy and personal liberty, with a focus on technicalcontrol measures such as digital surveillance. This study makes use of a doctrinal(legal-dogmatic) method, analyzing legislation, case law and legal principles, as well ashypothetical cases to create a broader and more nuanced view of the issues.The analysis finds that the employers’ managerial prerogative is extensive, but is limited byconstitutional rights and other employee-protective legislation. The separation between labormanagement and the right to privacy and personal liberty is not clear, and needs to be analyzedon a case-by-case basis. Swedish law lacks a comprehensive framework for employees, as aresult the court must use EU law and case law when analyzing these matters. This papertherefore argues in favour of a more comprehensive Swedish legal framework, that will benefitboth the employers and employees.