Whistleblowing in the workplace: How to protect your business

A recent report from the Ethics at Work: 2024 International Survey of Employees reveals 41% of Irish workers who report misconduct face retaliation.

Whistleblowing at work can be a minefield to navigate for employers, especially as employees can raise a whistleblowing claim from day one of employment.

But handling whistleblowing effectively is essential to maintaining a healthy and ethical workplace. So, read on to learn what counts as whistleblowing, how to prevent whistleblowing, what procedures to follow if it does occur, and the consequences of retaliation.

What is whistleblowing, and why does it happen?

A whistleblower is an employee who reports wrongdoing happening in their workplace. But not everyone who reports wrongdoing is a whistleblower.

• If an employee is reporting an issue that only impacts them personally, such as a workplace conflict, they are not considered a whistleblower
• If an employee reports actions that are unethical, hazardous, illegal, or of public concern, they are considered a whistleblower

Contrary to popular belief, whistleblowing can actually benefit your business. As an employer, you have many responsibilities and might not always catch every instance of wrongdoing.

Internally, a whistleblower can report misconduct by a superior or employee that impacts others or the business, such as fund misappropriation.

What does the law say about whistleblowing?

In Ireland, whistleblowers are protected under the Protected Disclosures Act 2014, which safeguards workers who report wrongdoing in a work-related context.

The law makes sure whistleblowers are protected from dismissal or penalisation for making such disclosures. It also mandates that employers with more than 50 employees establish internal reporting channels and procedures to handle these disclosures effectively.

How to reduce the risk of whistleblowing in your workplace

A recent survey found there has actually been an increase in the number of Irish employees reporting misconduct in the workplace. This highlights a need for action from business owners. With that in mind, there’s a few things you should consider:

• Provide training to managers: When an employee reports wrongdoing, they often go to management, who need to handle the issue appropriately. Proper training for managers on dealing with whistleblowing is essential to ensure you respond appropriately.
• Implement protection policies: Create an open and safe working environment by implementing whistleblower protection policies. Include these policies in your employee handbook to ensure all employees are aware and feel comfortable speaking up.
• Conduct employee surveys: Conduct employee surveys to understand employee beliefs and retaliation risks. Make sure you gather as much info as possible from employees of different ages, genders, races, responsibilities, and lengths of service.
• Reward good faith whistleblowing: Consider incentivising whistleblowing done in good faith. A letter of commendation, employee recognition, and praise are effective ways to acknowledge their contributions.

While some of this advice may seem counterproductive, it’s important to note once a disclosure has been made, an employee becomes protected from dismissal or any unfair treatment under Section 12 of the Protected Disclosures (Amendment) Act 2022.

Employers should handle the process carefully to minimise becoming the subject of a claim.

What should I do if a whistleblowing incident occurs?

If an incident occurs in your business, it’s important to follow the procedures outlined in the Protected Disclosures Act. However, the key steps are:

1. Acknowledge receipt of the whistleblowers report
2. Ensure the identity of the whistleblower is kept confidential unless disclosure is absolutely necessary for the investigation
3. Assign an impartial and competent person to handle the investigation
4. Investigate the reported wrongdoing thoroughly and impartially
5. Keep the whistleblower informed about the progress and outcome of the investigation
6. Ensure the whistleblower is protected from any form of retaliation or penalisation
7. If wrongdoing is confirmed, take the appropriate disciplinary or corrective action

Reassuringly, 7 in 10 Irish employees who spoke up about misconduct in 2024 felt satisfied with the outcome. This shows reaching a resolution between parties is more common than not.

Why retaliation is a bad idea…

Retaliating against whistleblowers is not only highly unethical but also illegal under Irish law. Ignoring this can lead to serious legal consequences, including costly tribunal claims.

A recent case involving Baranya VS Rosderra Meats Group highlighted the severe repercussions for businesses that retaliate against whistleblowers.

Financially, the costs can be crippling for businesses. Whistleblowing cases can result in compensation awards of up to five years’ remuneration for the affected employee. Not to mention significant legal fees and reputational damage, which can further impact their bottom line.

Work with whistleblowers, not against them, to keep your business free from risk.

Need more HR support with whistleblowing?

While we’ve broken down the key things to remember when dealing with whistleblowing in your business, the reality can often be more daunting. Seeking expert employment law advice from professionals is always advisable.

BrightAdvice is the unlimited, 24/7 advice service which can help you tackle employment law issues quickly and with confidence, including whistleblowing.

Book a free demo with one of our software experts or call us on 1800 279 841 to learn how BrightAdvice could help your business.