Whistleblowing

June 7, 2008

A current case has highlighted the important issue of whistleblowing. This is where an employee provides information about an act by another person or about a company (usually an illegal act) when this has come to their attention in the course of their work. The legislation covering whistleblowing is the Public Interest Disclosure Act 1998 (PIDA).

The case concerns Lesley Gray, a former manager at Hugo Boss, who claims she was dismissed for blowing the whistle on a colleague who she reported for allegedly stealing shirts and ties from the company. The company argues that she was in fact dismissed for her aggressive management style, following complaints from staff that she shouted at them and behaved in an unprofessional way. Gray had been employed by Hugo Boss for less than one year, and this is significant in this case because normally an employee is not able to claim unfair dismissal unless they have a year’s service. However dismissal for whistleblowing is automatically unfair under the Employment Rights Act, and there is no qualifying period required in this instance, nor is there an upper limit on the amount of compensation that can be rewarded (as there is in usual unfair dismissal cases). However there are a number of conditions that need to be met in order for the employee to be protected under whistleblowing legislation, so this tribunal will need to determine if Gray followed the correct process when she informed her employers of her concerns, and also if the dismissal was actually related to the whistleblowing or the reason that was given by the employer.

Employers are strongly encouraged to have a clear whistleblowing policy to ensure there are no discrepancies in the handling of any employee concerns in this area. This should be communicated effectively to employees so that they understand their rights and protection available, and also so they will know what to do if they find themselves in the position of knowing about illegal or dishonest actions that worry them in terms of their job security if they tell.

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