In the corporate landscape, whistleblowing is a subject that requires the utmost attention, despite its infrequent occurrence in most businesses. Managing whistleblowing incidents correctly is crucial, as it involves legal complexities and implications that can be detrimental if mishandled. In this guide, we will equip your business with the essential knowledge and strategies to navigate whistleblowing effectively.
Why is it so vital for your business to handle whistleblowing correctly? The answer is twofold: whistleblowing can be a benefit to your business, and whistleblowers are legally protected. Here’s what you need to know:
To safeguard your business, it’s crucial to create an environment where employees feel confident and comfortable reporting suspected wrongdoing. Equally important is the appropriate treatment of whistleblowers when they do come forward.
In essence, whistleblowing refers to an employee disclosing information, typically to their employer, that they reasonably believe reveals certain types of wrongdoing. The employee must also reasonably believe that their disclosure is in the public interest.
These types of wrongdoing encompass a broad range, including:
It’s important to note that these categories are wide-ranging, and employees may still have whistleblower protection even if their claims turn out to be inaccurate. The key criterion is that employees must have a “reasonable belief” in the wrongdoing, assessed from their perspective.
Identifying when an employee is whistleblowing can be challenging. Here are some tips to help you recognise it:
Unfortunately, for businesses, whistleblowing claims can be financially burdensome if lost at a tribunal. There is no limit to the amount that can be awarded to an employee who succeeds in a whistleblowing detriment claim.
Unlike many other types of unfair dismissal, there is no cap on the compensation an employment tribunal can grant to an employee who has been unfairly dismissed for whistleblowing. It’s worth noting that this, in conjunction with the absence of a minimum service requirement, makes whistleblowing claims attractive to employees with short tenure.
Furthermore, the reputational cost of a successful claim can be a significant concern, as employment tribunal judgments are publicly available online.
When an employee in your organisation takes the courageous step of “blowing the whistle” on perceived wrongdoing, it is paramount to respond with precision and care. Here’s an expanded insight into how your business should respond to whistleblowing incidents:
Whistleblowing is when an employee discloses information that they reasonably believe reveals wrongdoing in the workplace, often in the public interest. Addressing it correctly is crucial for businesses because it can help uncover serious issues that may otherwise go unnoticed. Moreover, whistleblowers are legally protected from retaliation, so mishandling their concerns can lead to legal and reputational consequences for businesses.
Whistleblowing can involve disclosing various types of wrongdoing, including criminal offences, breaches of legal obligations, miscarriages of justice, threats to health and safety, environmental damage, or the deliberate concealment of information related to these matters. These categories are broad, and employees can have whistleblower protection even if their allegations are ultimately proven wrong.
Whistleblowers have legal protections that make it automatically unfair to dismiss them or subject them to detrimental actions because they blew the whistle. These protections apply from the first day of their employment. Businesses should treat whistleblowers with care and ensure they are not victimised or mistreated in any way. Colleagues who victimise whistleblowers may also face personal and vicarious liability.
Whistleblowing claims can be costly for businesses. Unlike many other types of unfair dismissal claims, there is no limit on the compensation an employment tribunal can award to an employee who has been unfairly dismissed for whistleblowing. Additionally, the reputational cost of a successful claim can be substantial, as tribunal judgments are publicly available online.
When an employee reports suspected wrongdoing, businesses should respond with immediate assessment, ensuring the whistleblower’s protection, conducting a discreet investigation, and complying with employment laws. Seeking HR expertise to manage the investigation is crucial. Effective communication, corrective actions, documentation, preventative measures, and continuous improvement are also key components of a proper response to whistleblowing incidents.
In conclusion, responding to whistleblowing incidents is a multifaceted process that demands meticulous attention to detail, compliance with legal requirements, and a commitment to upholding the rights of the whistleblower. Seeking professional advice and following a well-structured response plan are vital steps in ensuring your business handles such incidents with the highest level of integrity and effectiveness. To book your free 15-minute consultation with a member of our expert team, contact us today on 0333 996 0666