Research shows that employee trust could be impacted by monitoring measures. We contend that these impacts could be contingent on how monitoring is exercised. Specifically, while the controlling elements in monitoring signal suspicion and undermine employee trust, the interactive elements facilitate the organization–employee reciprocation and strengthen employee trust. We drew evidence from 354 Chinese employees. The results showed that observational monitoring/interactional monitoring was negatively/positively related to employee trust and that employee psychological safety fully mediated these effects. The theoretical and practical implications of these findings are discussed.