I wonder how to handle whistleblowing disclosures properly

Whistleblowing plays a crucial role in identifying wrongdoing within organisations and protecting the wider public interest. For employers, understanding how whistleblowing operates in practice is essential to ensuring legal compliance and maintaining trust in the workplace. This article explains what whistleblowing is, what constitutes a qualifying disclosure, and the steps employers should take when a disclosure is made.

What is whistleblowing?

Whistleblowing is the act of reporting wrongdoing at work that affects others. Otherwise known as ‘blowing the whistle’, it involves making a disclosure in the public interest to alert others that something is wrong.

Whistleblowing is a protected activity, meaning that employees should not face retaliation for reporting concerns. The concern raised must affect the public, colleagues, or the wider organisation, rather than being a purely personal grievance.

What are qualifying disclosures?

Qualifying disclosures include:

• A criminal offence, for example, bribery;
• A breach of a legal obligation by an organisation;
• A miscarriage of justice;
• Sexual harassment;
• Health and safety issues; and
• Damage to the environment.

Employees can also blow the whistle about attempts to conceal information relating to these issues.

A qualifying disclosure is protected by law, provided the employee can show that the information disclosed falls within one of the qualifying disclosure categories and that the disclosure is in the public interest.

What should you do if you receive a whistleblowing disclosure?

Receiving a whistleblowing complaint is not always negative. Whistleblowing can help employers identify risks and potential wrongdoing. It provides the opportunity to take action before issues escalate within the business.

To handle a disclosure properly, it is important to follow any existing process consistently, such as a whistleblowing policy or written procedure. If you do not have a policy, then here is what you can do:

• Take the disclosure seriously: Listen carefully to the employee and treat the concern as potentially significant.
   
• Arrange a meeting with the employee: Discuss the concern in more detail, clarify the nature of the disclosure and determine the next steps.
   
• Protect the whistleblower from detriment: Reassure the whistleblower that they will be protected from any detriment arising from the disclosure, and that if they wish, you will keep their identity confidential.
   
• Investigate and respond to the disclosure in good time: Investigate the disclosure in detail and within a reasonable timeframe. This process can be outsourced to an external HR provider if necessary.
   
• Take the appropriate action based on the findings: If a qualifying disclosure is identified, inform the appropriate authorities and take any necessary action.

What are the legal risks of not handling a disclosure properly?

There are significant legal risks associated with failing to handle a whistleblowing disclosure appropriately:

• Uncapped Compensation Claims: If an employee can prove they were dismissed or suffered a detriment because they made a protected disclosure, an employment tribunal may award uncapped financial compensation.
   
• Automatic Unfair Dismissal: Dismissal for whistleblowing is automatically considered unfair, and employees do not need to have served a minimum period of service to bring a claim.
   
• Regulatory Fines: Mishandling reports can lead to investigations and substantial fines from regulatory bodies, such as the Financial Conduct Authority (FCA).
   
• Criminal Penalties: Ignoring concerns about unlawful practices could, in extreme cases, lead to business closure or even imprisonment for those responsible.

As well as legal risks, there are many reputational risks. Mishandling whistleblowing cases, especially those that eventually become public, can cause severe long-term reputational damage to the organisation and affect client confidence. Furthermore, a workplace culture in which employees feel unable to speak up without fear of reprisal can lead to poor morale, reduced productivity and high staff turnover.

Summary

In conclusion, whistleblowing plays a vital role in promoting transparency, accountability, and lawful conduct within organisations. When handled correctly, disclosures can help employers identify and address serious risks at an early stage, protecting both the workforce and the wider public. However, failure to manage whistleblowing appropriately exposes employers to significant legal, financial, and reputational consequences.

It is therefore essential that organisations have clear whistleblowing policies in place, take disclosures seriously, protect whistleblowers from detriment, and respond promptly and fairly. Creating a culture where employees feel safe to speak up ultimately strengthens organisational integrity and trust.

Further Advice

If you have any queries on whistleblowing or any other employment-related matters, our Peace of Mind Team is here to provide expert guidance. Our Document Audit Team can also assist in drafting relevant workplace policies.

Contact our Employment Team on 023 8071 7717 or email employment@warnergoodman.co.uk.

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