What does the phone-hacking scandal mean for employment law?

Ruling the media this week is the story of the closure of News of the World after 168 years of publishing. As the paper put out its final edition on Sunday, the ongoing effects of the phone-hacking scandal continue to undermine both Rupert Murdoch’s News International corporation, and his bid to takeover BSkyB and monopolise print and broadcast media in the UK.

Yet there is more than one cause for scrutiny in the Murdoch company’s behaviour. Not only does the situation raise the issue of private and public knowledge and trust: on a micro-level, especially when viewed in relation to the work of employment solicitors, such as ThomasMansfield LLP, the News Intenational group must investigate its conduct with staff.

An angle less investigated by the newspapers and blogs this week is the issue of employment in relation to the News of the World. All of the NOTW staff lost their jobs, barring Murdoch’s favourite Rebekah Brooks (former editor, friend of David Cameron and victim of veiled barbs in the final edition’s cryptic crossword on page 47).

Whilst some have been assured that News International will find another place for them, there have been little solid assurances of this. And given the total and widespread nature of the paper’s collapse – affecting 100s of employees – the circumstances in which journalists lost their jobs surely conjures a sense of injustice and, in their eyes, ‘criminal enterprise’ (as one of the crossword clues suggests).

Perhaps the most uneasy element of the situation – not least because it works psychologically rather than visibly – is the effect that certain employees’ malpractice may have on the reputation of all co-workers.

The activities completed under the auspices of NOTW and News International – including signing off phone hacking on crime victims, politicians and the mega-rich, disguising the nature of the practice from government and News International colleagues – has made it difficult to distinguish between individual conduct and the conduct of the brand. There are numerous NOTW journalists who have not participated in illegal activities – but as individuals associated with a besmirched company name, they will no doubt be implicated, in collective opinion, if not openly.

Will cases such as this tarnish the trust between corporation and employee? Whilst much of the focus is on how this scandal might affect public perception of the media, we should remember the equally human story being played out in private, behind closed doors. The lack of trust within a company has a profound effect on how that company undermines trust and reliability with its business partners and public.