Whistleblowing in the workplace: Minimising legal risks and protecting your business

Whistleblowing is a complex and highly sensitive issue for employers, with one in ten UK workers claiming to have witnessed possible corruption, wrongdoing or malpractice at work.

Recent cases, such as the inquiry into NHS Greater Glasgow and Clyde (GGC), highlight the serious consequences that can arise when employee concerns are not addressed effectively. For businesses, ignoring or mishandling whistleblowing can lead to financial losses, legal claims, and long-term reputational harm.

We explore the key legal protections for whistleblowers, the risks of non-compliance, and the steps employers can take to establish robust whistleblowing procedures.

What is whistleblowing and why is it important?

Whistleblowing allows employees to raise concerns about wrongdoing or misconduct in the workplace. Whistleblower protections are set out under the Employment Rights Act 1996 (ERA) which has also been amended by the Public Interest Disclosure Act 1998 (PIDA). Together, these laws define a ‘qualifying disclosure’ made by workers, which is any disclosure of information that, in the reasonable belief of the worker, is made in the public interest and highlights one or more of the six types of wrongdoing listed in the ERA.

Although the PIDA was originally intended to limit what would amount to a qualifying disclosure, its practical interpretation has become wider over time. Once a qualifying disclosure is established, for it to become protected under UK law,

For whistleblowers to gain legal protection under UK law, their disclosure must meet the criteria for a qualifying disclosure and be reported to a specific list of people, which is usually the employer or designated external bodies.

What is the public interest requirement for whistleblowing?

For a disclosure to be considered for protection, it must be in the public interest. In certain sectors, such as healthcare, establishing this is often more straightforward. For example, whistleblowing about infection control issues within the NHS directly impacts public health, making it easier to demonstrate the public interest element.

For example, in the case of NHS GGC, concerns about infection control – a matter with clear public relevance – were reportedly suppressed.

Do employers need a whistleblowing policy?

Although PIDA does not impose a legal obligation on employers to have a whistleblowing policy, listed companies and certain sectors must implement specific procedures.

Most organisations that operate in the medical, construction or financial sectors, for example, will usually have a policy of some sort in place for whistleblowing procedures. However, as seen with NHS GGC, having a policy on paper is not enough. If policies are poorly communicated or inconsistently applied, employers risk legal claims and significant reputational harm. Ensuring that procedures are clear, accessible, and enforced in practice is vital to protecting both employees and the business.

Best practices for whistleblowing policies

Regularly review policies and procedures

To reduce the risk of claims and other repercussions, employers should regularly review their internal whistleblowing procedures to ensure that they are clear, effective, and understood across the business. Policies should outline the process for raising concerns and highlight the routes available, such as through a nominated individual, team, email address, or even a telephone helpline.

Communicate processes clearly and consistently

Once policies have been put in place, it is important for employers to communicate this clearly and consistently to foster a culture of openness and transparency. Employees should feel confident about raising concerns without fear of adverse treatment. Offering the option to report issues anonymously can also encourage staff to come forward.

Provide regular training

Providing regular training is another crucial step to help employees better understand and follow whistleblowing procedures. This reduces the likelihood of misconduct, and protects the business from reputational harm if a claim arises.

Training helps employees understand whistleblowing procedures and ensures that key personnel, such as HR professionals, are equipped to handle disclosures appropriately and comply with legal requirements.

Legal implications of mishandling whistleblowing

If an employee is found to have been dismissed as the result of making a protected disclosure, they may be entitled to uncapped financial compensation. They are also protected from any detrimental treatment as a result of the disclosure, which could lead to further legal claims and significant financial penalties for the employer.

Employers must be mindful of these potential consequences and follow their internal procedures when a concern is raised. Open communication with the employee is essential to avoid feelings of isolation or unfair treatment. Where an organisational culture of fear or bullying is found to have suppressed whistleblowing, those responsible should face appropriate disciplinary action under company policies.

Building a transparent workplace culture

To reduce the risk of whistleblowing progressing to legal action, employers must understand the legal protections in place for employees. By establishing effective policies, reviewing them regularly, and ensuring they are communicated clearly and consistently, businesses can foster a culture of transparency and trust. This approach helps prevent costly legal disputes, financial penalties, and long-term reputational damage.