Whilst most employers have a staff handbook (or at the very least, a collection of core policies for staff), many have yet to put in place a specific policy about whistleblowing and what employees should do if they discover wrongdoing within their business.
Legal background
The Public Interest Disclosure Act 1998 and the Employment Rights Act 1996 provide protection for workers and employees from detrimental treatment as a result of them raising their employer’s, or a third party’s; irregular activity or malpractice.
If an employee does suffer detrimental treatment because they blew the whistle, they can complain to the Employment Tribunal and seek compensation for the loss suffered. As with discrimination claims, there is no cap on the amount of compensation which can be awarded.
Why have a Whistleblowing policy?
Having a whistleblowing policy in place can be helpful for the following reasons:
a. realises the seriousness of the situation;
b. can make sure allegations are investigated as appropriate; and
c. can take steps to limit the potential damage to the employer.
A clear whistleblowing policy can protect a firm in the event a false or malicious accusation is made by a current or former employee. A whistleblowing policy can explain the consequences of when such an accusation is made;
It is therefore important that organisations realise the importance of having clear whistleblowing procedures in place and effectively communicated to staff at all levels. This is even more important for employers in the financial services sector.
The Senior Managers and Certification Regime (“SMCR”) which currently applies to banks, and which will be extended to other financial services employers in 2018, requires firms to take the following steps (and most of these should be recorded in the firm’s whistleblowing policy):
What should be in a Whistleblowing policy?
The whistleblowing charity, Public Concern at Work (PCAW), is dedicated to raising awareness in the importance of whistleblowing in both the public and private sector and how it can help combat fraud, corruption and other irregular activities. PCAW advise that organisations should continually review their whistleblowing policies and regularly communicate to staff the avenues open to them if they wish to make a disclosure.
PCAW recommend that a strong whistleblowing policy will make the following points clear:
Whistle blowing policies ought to be tailored to the particular employer’s business and sector. For example, regulated businesses ought to address how breach of regulations should be dealt with and in what circumstances, if any, the employee should report to the regulatory. Also, employers who have a turnover of more than £36m ought to make sure that their whistleblowing policies cover anti-slavery and human trafficking within the supply chain and highlight it as an issue that should be flagged via this channel.
If you need any help drafting or reviewing a whistleblowing policy, contact a member of the Fox Williams HRLaw team
Legal background
The Public Interest Disclosure Act 1998 and the Employment Rights Act 1996 provide protection for workers and employees from detrimental treatment as a result of them raising their employer’s, or a third party’s; irregular activity or malpractice.
If an employee does suffer detrimental treatment because they blew the whistle, they can complain to the Employment Tribunal and seek compensation for the loss suffered. As with discrimination claims, there is no cap on the amount of compensation which can be awarded.
Why have a Whistleblowing policy?
Having a whistleblowing policy in place can be helpful for the following reasons:
a. realises the seriousness of the situation;
b. can make sure allegations are investigated as appropriate; and
c. can take steps to limit the potential damage to the employer.
A clear whistleblowing policy can protect a firm in the event a false or malicious accusation is made by a current or former employee. A whistleblowing policy can explain the consequences of when such an accusation is made;
It is therefore important that organisations realise the importance of having clear whistleblowing procedures in place and effectively communicated to staff at all levels. This is even more important for employers in the financial services sector.
The Senior Managers and Certification Regime (“SMCR”) which currently applies to banks, and which will be extended to other financial services employers in 2018, requires firms to take the following steps (and most of these should be recorded in the firm’s whistleblowing policy):
What should be in a Whistleblowing policy?
The whistleblowing charity, Public Concern at Work (PCAW), is dedicated to raising awareness in the importance of whistleblowing in both the public and private sector and how it can help combat fraud, corruption and other irregular activities. PCAW advise that organisations should continually review their whistleblowing policies and regularly communicate to staff the avenues open to them if they wish to make a disclosure.
PCAW recommend that a strong whistleblowing policy will make the following points clear:
Whistle blowing policies ought to be tailored to the particular employer’s business and sector. For example, regulated businesses ought to address how breach of regulations should be dealt with and in what circumstances, if any, the employee should report to the regulatory. Also, employers who have a turnover of more than £36m ought to make sure that their whistleblowing policies cover anti-slavery and human trafficking within the supply chain and highlight it as an issue that should be flagged via this channel.
If you need any help drafting or reviewing a whistleblowing policy, contact a member of the Fox Williams HRLaw team
Whilst most employers have a staff handbook (or at the very least, a collection of core policies for staff), many have yet to put in place a specific policy about whistleblowing and what employees should do if they discover wrongdoing within their business.
Legal background
The Public Interest Disclosure Act 1998 and the Employment Rights Act 1996 provide protection for workers and employees from detrimental treatment as a result of them raising their employer’s, or a third party’s; irregular activity or malpractice.
If an employee does suffer detrimental treatment because they blew the whistle, they can complain to the Employment Tribunal and seek compensation for the loss suffered. As with discrimination claims, there is no cap on the amount of compensation which can be awarded.
Why have a Whistleblowing policy?
Having a whistleblowing policy in place can be helpful for the following reasons:
a. realises the seriousness of the situation;
b. can make sure allegations are investigated as appropriate; and
c. can take steps to limit the potential damage to the employer.
A clear whistleblowing policy can protect a firm in the event a false or malicious accusation is made by a current or former employee. A whistleblowing policy can explain the consequences of when such an accusation is made;
It is therefore important that organisations realise the importance of having clear whistleblowing procedures in place and effectively communicated to staff at all levels. This is even more important for employers in the financial services sector.
The Senior Managers and Certification Regime (“SMCR”) which currently applies to banks, and which will be extended to other financial services employers in 2018, requires firms to take the following steps (and most of these should be recorded in the firm’s whistleblowing policy):
What should be in a Whistleblowing policy?
The whistleblowing charity, Public Concern at Work (PCAW), is dedicated to raising awareness in the importance of whistleblowing in both the public and private sector and how it can help combat fraud, corruption and other irregular activities. PCAW advise that organisations should continually review their whistleblowing policies and regularly communicate to staff the avenues open to them if they wish to make a disclosure.
PCAW recommend that a strong whistleblowing policy will make the following points clear:
Whistle blowing policies ought to be tailored to the particular employer’s business and sector. For example, regulated businesses ought to address how breach of regulations should be dealt with and in what circumstances, if any, the employee should report to the regulatory. Also, employers who have a turnover of more than £36m ought to make sure that their whistleblowing policies cover anti-slavery and human trafficking within the supply chain and highlight it as an issue that should be flagged via this channel.
If you need any help drafting or reviewing a whistleblowing policy, contact a member of the Fox Williams HRLaw team