Whistleblowing is the act of reporting any kind of wrongdoing, misconduct, or illegal activities within an organisation and it can help prevent or stop corruption, fraud, illegal activities or even health and safety violations and other harm to the public interest. Whistleblowers are usually employees who are aware of such activities and speak up, either internally or externally.
For employees, whistleblowing can help them uphold their professional and ethical standards, protect their rights and interests, and avoid complicity or liability for wrongdoing. Even for an organisation, there can be benefits; having an effective whistleblowing policy and procedures in place can help improve performance, reputation, and accountability and also help identify and correct problems, prevent future incidents, and foster a culture of integrity, accountability and transparency.
Despite these benefits, it can still be a daunting prospect for an employee and making a disclosure can also entail significant risks for those who do decide to report. Employee whistleblowing may lead to retaliation, harassment, discrimination, or even dismissal by the employer, and that is why it is important to consider the legal matrix that exists to protect whistleblowers.
Whistleblowers have protections under law, depending on the nature and scope of their disclosure. Some of the laws that protect whistleblowers are:
- The Public Interest Disclosure Act of 1998, which protects employees who report wrongdoing in the public interest, (eg health and safety risks, environmental damage, criminal offences, or breaches of legal obligations) from detrimental treatment.
- The Employment Rights Act of 1996, which protects employees from unfair dismissal or detriment for making a protected disclosure.
- The Enterprise and Regulatory Reform Act of 2013, which implemented a public interest test for whistleblowers and introduced vicarious liability for employers where other employees victimise whistleblowers.
Whistleblowers may also be eligible for compensation or remedies for any losses or damages they suffer as a result of their disclosure and we can help advise on any such claims on the topic generally.
To follow: How can employers deal with employee whistleblowing claims responsibly and proportionately….
