A school cleaner discovered a video camera secretly stashed in a disabled cubicle to film pupils and staff using the toilet.
Police are investigating a man working at Blatchington Mill School in Hove who has been suspended following the discovery.
They said the device was concealed in a paper towel holder pointing directly at the lavatory near the school's learning support centre.
The toilet is thought to be in regular use by pupils and teachers.
The allegations date back to last June but the news emerged this week when staff were briefed by headteacher Neil Hunter.
Parents today voiced concerns over vetting procedures at the school and its handling of the incident.
A mother of a Year Nine girl told The Argus: "This is going to come as a complete shock to most parents and I'm appalled.
"I don't think anyone has been told about this, which is astonishing given the seriousness of the allegations.
"I don't know if the man has done anything wrong or not but what we do know is that someone seems to have been trying to film secretly in a toilet which is disgusting."
Officers have questioned the man but no arrests have been made yet.
A police spokeswoman said: "It appears to have been a fairly crude device and not designed to be concealed so it was discovered quickly. We have not recovered any footage from the camera and we do not believe there is any.
"We think it must have only been in place for a short time before it was found because it was fairly conspicuous."
Blatchington Mill has more that 1,700 11 to 18-year-olds.
The police spokeswoman said: "We must stress this is an ongoing investigation and we are still taking statements and questioning people."
A Brighton and Hove City Council spokesman said: "A male member of staff was suspended on June 10, 2005, following allegations which are the subject of an ongoing investigation by Sussex Police."
David Linfield, business manager at Blatchington Mill, said the school could not comment.
Other parents last night rallied to support it. Penny Smith, who has children in Year Ten and Year 11, said: "Blatchington Mill has always had our children's best interests at heart. It would have had its own important reasons for not announcing this to parents and it has my full support."
The school's prospectus says: "The policy of the school is to provide a safe environment for students, staff and visitors."
It says disabled students are not treated differently but special toilets are available.
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