We do not have this feature of *Hide Worklog* permission. However, we had an ongoing request for this feature that has been tracked here: http://jira.atlassian.com/browse/JRA-2364, which discussed about hiding worklog or time tracking for certain users. Unfortunately, it's closed.
What is possible at the moment is add/edit/delete worklogs which you can manage from permission scheme: http://confluence.atlassian.com/display/JIRA044/Managing+Project+Permissionsor also maybe you can take a look on how to [restrict the visibility of worklog on an issue: http://confluence.atlassian.com/display/JIRA/Restricting+the+Visibility+of+Worklog+on+an+Issue.
Thanks for the response, too bad this feature request was closed, it seems like a fundamental function that users should not be able to see the administrative side of the house unless there is a justifiable reason.
Looks like this page: http://confluence.atlassian.com/display/JIRA/Restricting+the+Visibility+of+Worklog+on+an+Issuehas been deleted. I will take a look at add/edit/delete work logs, but I am not sure how this will help if you are using work logs. If I understand it correctly, the user can see the work log while in progress.
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