Dismissed News of the World Employees Seek Compensation

Disgruntled News of the World employees who were left both jobless and reputations scarred could have reasonable ground for compensation, Alan Kennedy states.

In June 2007 the House of Lords upheld, in principle, the right to award compensation to employees who suffer common law damages at the hand of their employer. This after two former employees of Bank and Credit Commerce International were left reputation in tatters when the firm collapsed in 1991.

The judgement stated “corrupt practises had damaged their prospects of future employment in the industry” and “such claims for financial loss caused by breach of contract [could be] put forward for consideration.”

Evidentially, staff caught up in the phone hacking scandal could seek compensation for damage to reputation and consequently loss of earnings. Threats of which may encourage Rupert Murdoch and News International to rethink any redundancy payouts and press for compromise agreements to protect against further claims.

Redundancy procedures in the UK are amongst some of the toughest in the world, a hindrance for businesses looking to swiftly disband but much needed protection for employees. Current law states that a consultation or notice period must be served before the first redundancy.

Although doors at News of the World closed almost instantaneously, what isn't clear is whether News International pre-empted the paper's troubles, beginning the consultation period before the story broke, or terminated all contracts upon closure.

Losing staff and the consequent financial commitment of redundancy pay justifies rumours of the paper's return under a new brand. Hypothetically, a transfer of undertakings (protection of employment) should occur in this instance, maintaining the employee's rights whilst transferring them to a new company. Although heavily speculated, we have no indication as yet to what form this may take or the amount of staff retention.

Instantaneous corporate collapse has become a regular sight in recent times but does little to sooth dismissed employee's pain. Over the coming days the ongoing phone hacking inquest is likely to uncover further incriminating evidence to support any former employee's claim.

News International lawyers come fire fighters will be working overtime on damage limitation and all that before the PR sweep up begins. Put simply, we're unlikely to see a replacement paper soon.