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News & Features NoW: How Not to Handle Redundancy

NoW: How Not to Handle Redundancy Featured

Written by Entrepreneur Country on Wednesday, 13 July 2011 17:11
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Last weeks shock announcement that the News of the World was to shut may have been welcomed by many following the recent revelations in the phone hacking saga, but for the 200 or so employees of the 168 year-old publication it is a personal tragedy as they face an uncertain future.

Whilst News International has promised to move most of the employees to new posts within the company, so far only 40 such posts have been identified and with the printing presses grinding to a halt last Sunday many face losing their jobs.

Croner, the UK's largest provider of workplace information, believe that this latest twist in the News of the World saga may one-day be seen as be a case study of how not to handle redundancy.

Richard Smith, HR expert at Croner said; "Although we are not yet aware of the full facts, the News of the World situation may present a number of issues from an employment law perspective."

1. A firm cannot make hundreds of people redundant without consultation; there appears to be a clear breach of the provisions of the relevant legislation in this situation.

2. There is a great danger of claims for unfair dismissal unless alternative work is being offered within the company.

3. If, as is rumoured, a new Sunday newspaper will take the place of the News of the World from News International, there is a possibility that this may be subject to a TUPE transfer and will therefore give staff rights to transfer.

"Leaving aside the law, the process of informing employees of the closure has, in Croner's view, been brutal and lacked best practice. It also brings into play other aspects of corporate governance covered by UK legislation.

If it proves to be true that News of the World journalists have paid bribes to obtain information, good financial management of a company should have made it difficult to conduct business in this way. Supervision of such activity is required under the Bribery Act and, if there is no proper system in place, senior managers can be liable for criminal offences. Employers should ensure that proper standards are known and enforced in any business by communication, training and dealing with transgressors."

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0 # The Back Office 2011-07-13 20:54
:sad: I agree entirely, with the exception that perhaps the Bribery Act didn't apply at the time the bribery took place (although professional morals should have). Data Protection should certainly come into play. Where is the Information Commissioner in all of this?

And where are the mobile phone companies who failed to provide data security? They seem ominously quiet.

But yes, I agree. The treatment of News of the World staff was extremely heavy handed and may prove illegal. It will be interesting to see how this saga unfolds over the coming weeks/months.
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