There are often special cases in the laws for when covert monitoring is genuinely justified, for example when there is a reasonable suspicion of wrong-doing by an employee or there are serious security concerns that legitimately require stronger measures. But intrusive surveillance by default, even of employees using company resources on company time, is not permitted in these jurisdictions.
I would only add that in the extraordinary case of a legal investigation, there's still no room for vigilante spying by the employer themselves. Presumably, law enforcement would take necessary steps to intervene, not the employer.
Why bother logging keystrokes and clicks, when there is BlueCoat that in real time decrypts, reads, logs/reports, encrypts EVERYTHING that comes in and out of your PC?
If you suspect that your current or former employer is monitoring people's keystrokes, please contact the appropriate authorities to start a whistleblower process.