University of Waterloo computing resources are assigned to users with the presumption of reasonable privacy. More detail is given in the University guidelines on usage.
This implies, for example, that staff members have a right to reasonable privacy and neither peers nor managers should expect access to a staff member's computing resources (except as per the University guidelines on usage). To avoid this problem the Math Faculty Computing Facility (MFCF) provides means to allow for controlled sharing of storage, generic accounts/mailing addresses, etc. Please consult MFCF for advice on how to best provision a shared resource.
Also note that some information on use is routinely collected by the University (e.g. guidelines on usage) and that information that has been deleted may in fact also be retained for some time due to routine backups of some storage devices.