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JANUARY 2013
Legal Focus
in the Tribunal that a particular disclosure was not made in the public interest. Employees will continue to settle cases rather than litigate.
Courts have generally interpreted the whistle blowing legislation widely and adopted a purposive construction. It will
therefore take a brave employer to argue in the Tribunal that a particular disclosure was not made in the public interest.
How necessary do you think the reforms were? are there any further changes you would have liked to see?
It was felt the reforms were necessary to stem the rise in whistle blowing claims within the finance and banking industries. Bankers were using the loophole as a litigation tactic in bonus and pay disputes. However, whilst an additional criteria of public interest has been introduced to make some claims difficult, there are no changes to the protection and remedies available to the whistle blower who has successfully (and rightly) blown the whistle. In the UK, whistle blowers are protected against detriment and dismissal. However, the question arises as to whether we need to follow the US model, where, in certain cases, whistle blowers are financially rewarded by regulators for their acts. This would encourage more whistle blowing.
according to information released by the corporate investigation group Kroll, between June 2011 and May 2012 the FSa received 3,733 reports of whistle-blowing through its helpline, a significant increase of 189% compared to the same period three years ago. to what do you attribute this rise?
There is certainly increased awareness of whistle blowing, which has encouraged employees to come forward. Due to the economic climate, there has been a great deal of job insecurity within the finance industry and employees have engaged in litigation tactics using the whistle blowing legislation to maximise their bargaining power in disputes with employers. Despite the reforms, I feel the claims will continue to increase as employees and their lawyers become more imaginative.
Is there anything else you would like to add?
Employers should be reviewing their staff handbooks and whistle blowing policies. In addition, I think there is a need to train HR Departments in, firstly, recognising a potential whistle blowing claim and, secondly, taking positive steps to deal with such complaints. LM
contact details:
85
Raj dhokia
FREEdMan GREEn dHoKIa SoLIcItoRS 105 Boundary Road, London nW8 0RG tel: 020 7625 6003 Fax: 020 7372 3861
Email: r.dhokia@fgdlaw.co.uk