Ireland’s New Whistleblower Protection Laws: A Game-Changer for Finance Sector?
January 1st, 2023 marked a significant milestone for Ireland as the Protected Disclosures (Amendment) Act 2022 came into effect. This new law strengthens whistleblower protection in Ireland and brings it in line with EU regulations.
Key Changes
- A new Office of the Protected Disclosures Commissioner has been established to support whistleblowing measures.
- The definition of “worker” has been expanded to include shareholders, volunteers, trainees, board members, and job applicants, recognizing that all individuals can spot harm and deserve protection.
- Employers are now required to establish reporting channels and procedures for employees to make protected disclosures, maintain confidentiality, provide feedback, and follow up on concerns diligently.
What Constitutes a Protected Disclosure?
The Amendment Act has expanded the categories of wrongdoing that qualify as protected disclosures, including:
- Criminal offences
- Failure to comply with legal obligations
- Miscarriage of justice
- And more
However, there is a carve out clause that excludes certain concerns from counting as a protected disclosure, such as interpersonal conflicts. Critics argue that this creates uncertainty and may prevent whistleblowers from speaking up about serious issues.
Compensation for Whistleblowers
Whistleblowers who have been penalized for making protected disclosures can receive compensation, but the amount is capped at:
- 5 years’ pay or €15,000 (depending on whether they received a salary from the organization)
Deputy Mairéad Farrell has argued that there should be no limit on the amount a whistleblower can receive, citing the high personal cost of whistleblowing.
Conclusion
The introduction of the Amendment Act marks a significant step forward in protecting whistleblowers in Ireland. As the country implements these changes, it will be interesting to see how they impact individuals and organizations alike.
As Protect notes, the UK Government has yet to complete its review of PIDA and adopt international best practice from the EU and around the world. The introduction of the Amendment Act serves as a reminder of the importance of robust whistleblower protection laws in ensuring accountability and promoting transparency in finance and beyond.