Whistleblower Policies in Finance: Ireland’s Protected Disclosures (Amendment) Act 2022 Comes into Force

Ireland has introduced significant changes to its whistleblowing legislation with the coming into force of the Protected Disclosures (Amendment) Act 2022 on January 1, 2023. The new law aims to create a uniform standard of protection for whistleblowers across EU Member States.

Key Changes

• The establishment of the Office of the Protected Disclosures Commissioner, responsible for directing protected disclosures to the appropriate regulatory body or person most competent to take action.
• The Commissioner will also follow up on disclosures when there is no one suitable available and ensure that prescribed persons comply with new rules for establishing reporting channels, acknowledging receipt of concerns, assessing those concerns, and providing feedback.

Expanded Definition of a “Worker”

• The definition of a “worker” has been expanded to include:
  • Shareholders
  • Volunteers
  • Trainees
  • Board members
  • Job applicants
• Recognizing that all individuals in a work setting can spot harm and deserve adequate protection.

Anonymous Reporting

• Employers are not obliged to accept or follow up anonymous reports, but the amendments make clear that any anonymous whistleblower who is subsequently identified and penalized shall be entitled to the same protection as other workers.

Wrongdoing Categories

• The new law expands the list of wrongdoing categories that qualify as protected disclosures, including:
  • Criminal offences
  • Failure to comply with a legal obligation
  • Miscarriage of justice
  • Endangerment of health and safety
  • Damage to the environment
  • Breaches of EU law in areas such as public procurement, financial services, product safety, and consumer protection

Employer Requirements

• Employers with 50 or more employees are now required to create a whistleblowing policy setting out reporting channels and procedures for employees to make protected disclosures.
• The policy must ensure:
  • Confidentiality
  • Diligent follow-up on concerns
  • Feedback to whistleblowers

Concerns and Uncertainty

• Some argue that the Amendment Act has not gone far enough, citing the carve-out clause which excludes certain concerns from counting as a protected disclosure, including interpersonal conflicts between workers or personal grievances.
• There is uncertainty about what types of concerns are included in this carve-out.

Compensation for Whistleblowers

• Whistleblowers who have been penalized for making protected disclosures can receive compensation up to 5 years’ pay for those with a salary or €15,000 for those without.
• In contrast, UK law does not cap the amount of reward a whistleblower can receive.

Debate and Calls for Reform

• The Irish Government’s decision to limit financial awards has sparked debate, with Deputy Mairéad Farrell arguing that there should be no limit on the amount a whistleblower can be rewarded.
• As Protect, we welcome the introduction of the Amendment Act and hope it encourages the UK Government to complete its long-awaited review of the Public Interest Disclosure Act 1998 and consider adopting international best practice from the EU and around the world.