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I have no answers, but this is a fascinating situation. It would make a great case study.
I m thinking the same well
Pro
“The manager picks it up, but snoops” this is problem #1.
There is “reasonable expectations of privacy” which may or may not have been violated depending on how it’s defined in NZ law.
But the problem is, if I’m trying to find who owns a phone id go to settings and find the owner, or call their mom/dad and say, hello I found this found your child is missing.
If I start snooping that’s no longer finding the owner. And the manager firing the employee - could - face reproductions from both wrongful termination and breach of privacy depending on NZ laws.
IMO the manager is in the wrong, snooped and breached “reasonable expectations” of privacy. I don’t know most lost and found places that snoop through a phone even if they can. Usually you just wait for a phone call and answer..
Pro
I think the unlocked phone part is one thing, but snooping changes it completely. I would struggle to see how that does not damage trust at work