August 01, 2011
In the wake of the shock closure of The News of the World last Sunday, employment law experts warn that “many City law firms may see potential litigants queuing round the corner.” Head of employment at city firm Bargate Murray, Philip Henson, added that "Whistleblowing claims may be the order of the day as there is no financial cap on compensation and no minimum period of service requirement for such claims.”
The News of the World is no stranger to the Employment Tribunal. In December 2009 they were ordered to pay approximately £800,000 to their former sports reporter Mark Driscoll in a high profile unfair dismissal case. The court concluded that Mr Driscoll had suffered “a consistent pattern of bullying behaviour” with the intention of his employer “to remove him from their employment.” The award included aggravated damages for the “high-handed and oppressive” way the paper dealt with the matter.
The News of the World employed over 200 people. Where 100 or more employees are to be made redundant, a consultation must take place with employee representatives, which must start at least 90 days before any dismissals take effect. James Murdoch announced the paper’s closure on the 7th July 2011; the paper’s last edition was published on the 10th, a mere 3 days later.
News of the World owner, News International, confirmed in a recent statement that “it will offer employment opportunities to the vast majority of staff who lost their jobs as a result of the closure,” which will settle some claims. However, Richard Smith, HR expert at Croner, the UK’s largest provider of workplace information, stated “Leaving aside the law, the process of informing employees of the closure has, in Croner’s view, been brutal and lacked best practice.”
