The Ofcom advice linked to above[1] mentions business use specifically.
In short, businesses can only record for some specific purposes (e.g. for regulatory compliance) and they have to adhere to the principles of the data protection act. It particularly mentions some privacy issues with regard to your employees.
I think that the disclosure to other employees would be covered by the DPA guidelines - if it's required for business purposes then it's fine.
I think that the disclosure to other employees would be covered by the DPA guidelines - if it's required for business purposes then it's fine.
[1] http://www.ofcom.org.uk/static/archive/oftel/consumer/advice...