A very complete explanation in my opinion, it is true that there are several things outside of work that the company needs to know, but if the company monitors our daily activities outside of work, of course the employees seem to be uncomfortable.
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well they wont be monitored, submitting their id is to check their past record if they are living a decent life or they are trolls online or those who post indecent videos, if you are an employer, you wont want such people to work for you.