Whistleblowing: Good, Bad or Ugly?
Unless you’ve been living under a rock, you know about the Post Office Horizon scandal. Whistleblowers in the Horizon IT scandal revealed systemic efforts to conceal evidence. The outcome – which is ongoing – is historic.
Most whistleblowing incidents don’t have the huge impact of the Horizon IT travesty. They do, however, affect lives and businesses. HR plays a crucial role in creating and managing whistleblowing policies.
Surely identifying problems is good?
Whistleblowing gives everyone involved the chance to put things right. Good outcomes include:
- Correcting wrongdoing as investigations can create change, protecting employees, customers or the wider public.
- Improved company culture with greater transparency, ethical standards and/or compliance.
- Legal protection under the Public Interest Disclosure Act 1998 enabling whistleblowers to seek:
– compensation (which is uncapped in tribunal claims),
– reinstatement or re-employment, and
– public vindication or legal precedents.
Example: A nursery teacher in Scotland received £390,000 in compensation after being fired for raising concerns about the treatment of autistic children.
It’s worth repeating: compensation is uncapped in tribunal claims.
How is whistleblowing bad?
It’s often how whistleblowing takes place that can be bad. Heading straight to public shaming rather than pursuing internal resolution or whistleblowing for personal gain can easily lead to tarnished reputations, costly tribunal/court cases and significant stress for everyone involved.
Example: A former Royal College of Nursing Chair brought whistleblowing detriment claims after being disciplined and expelled. As these claims were taken directly to the media, legal protection afforded to whistleblowers did not apply.
The ugly side of whistleblowing
Ultimately, employers must protect employees who report wrongdoing from retaliation. The unfair dismissal and/or unfair treatment that sometimes result are examples of how whistleblowing can become ugly.
Example: Despite reporting responsibly and acting in the public interest, a whistleblowing civil servant had their security clearance revoked, which led to her dismissal. An employment tribunal ruled she had acted reasonably in the disclosure and that her dismissal was automatically unfair as a result of protected whistleblowing.
Preparing for whistleblowing …
Whistleblowing can impact any organisation. Often, you don’t know about it until it’s out there, officially and publicly. You can minimise the risks involved by ensuring:
- You have a whistleblowing policy. Not just tucked away in a handbook, but one that’s accessible and clearly communicated to your employees. Typically, this would include reporting routes, degree of anonymity, impartial investigation and employee protection against retaliation.
- Employees are appropriately trained. This should cover areas such as making/handling disclosures and recognising/preventing victimisation.
- Visible support is evident throughout the organisation, including the designation of responsibility for addressing issues and reviewing outcomes. In some cases, such as those involving fraud, this is a legal obligation from 1 September 2025.
- Look out for future changes. UK Parliament is progressing the Office of the Whistleblower Bill. If enacted, it may create an independent body offering legal, financial, and emotional support for whistleblowers and could introduce fines or criminal liability for mishandling disclosures.
‘It’s never too soon to protect your organisation and your employees from whistleblowing,’ says Emma Clack of Heneom HR near Stevenage and Welwyn, Herts. ‘So many companies don’t appreciate this until it’s too late … and costly.’
Do you have a whistleblowing policy? Are your HR policies sufficiently robust and transparent? Talk to the friendly HR superheroes at Heneom HR. We’ll help you navigate the good, bad and ugly of whistleblowing.