This year we have seen an increase in clients seeking advice after an employee has “blown the whistle” on an internal practice or situation they are concerned about. When an employee raises a concern under the whistleblowing policy this is referred to as making a “protected disclosure.”

In this article we will explore what a whistleblowing policy is and why employers need to have one.

What is a whistleblowing policy?

A whistleblowing policy is the procedure for employees to follow if they suspect wrongdoing is occurring within their organisation. The policy enables employees to raise concerns which must then be investigated internally and objectively by the employer.

Why do employers need a whistleblowing policy?

Having a policy steers employers to maintain high standards, demonstrate accountability and be transparent with all their stakeholders.

By engaging with the policy organisations can reduce risks of fraud and unethical practices and help increase compliance with regulators and their health and safety obligations.

Legal considerations for employers

• A whistleblower is protected against being dismissed, or subject to any detriment, for whistleblowing. This is set out in the Public Interest Disclosure Act 1998 (PIDA) which protects employees who report wrongdoing.

• A dismissal for whistleblowing is automatically unfair even if the employer has followed a fair procedure.

• The cap on compensation to a whistleblower does not apply to whistleblowing dismissals. The purpose of this is to stop an organisation from making a financial calculation along the lines of “if our worst-case scenario is a year’s pay, we are prepared to risk it to remove this troublemaker”.

• An employee who alleges that they have been dismissed because of whistleblowing can apply to the employment tribunal for “interim relief” within seven days of their dismissal. This triggers a prompt hearing that only considers if the employee is likely to be able to show they were dismissed because of whistleblowing. If that is the finding the employer is ordered to continue paying the employee their full salary until the full tribunal is convened. The purpose of this is to minimise any financial hardship for a whistleblower who has been dismissed.

• Whistleblower protections also include job applicants who have the right to make a “protected disclosure.”

Essential elements of a whistleblowing policy

A whistleblowing policy should:

• establish clear reporting channels, ensuring that workers know how and to whom to report their concerns

• provide appropriate assurances of confidentiality

• set out the protections against detriments and dismissal that apply to whistleblowers

Best practice organisations will also:

• provide an anonymous reporting system (e.g. confidential phone line or reporting portal)

• train employees at all levels about the importance of whistleblowing and associated procedures

• Appoint a senior employee (e.g. a director) as whistleblowing champion to ensure the confidentiality of whistleblowers.

Further support

If you have any queries about whistleblowing please contact your HR consultant.

Additional resources relating to whistleblowing include a toolbox talk video which can be found in your membership area of the SSG website.