Whistleblower Protection in Finance Sector in Ireland Gets a Boost

New Legislation Strengthens Whistleblower Protection Laws in Ireland

September 21, 2022

The introduction of the Protected Disclosures (Amendment) Act 2022 has enhanced whistleblower protection laws in Ireland, aligning them with the EU Whistleblowing Directive. This new legislation aims to encourage employees and others to report wrongdoing without fear of retaliation.

Expanded Definition of a Protected Disclosure

• The definition of a protected disclosure has been broadened to include reports of potential breaches of EU law, covering:
  • Public procurement
  • Financial services
  • Product safety
  • Consumer protection
  • Data privacy
• This means that whistleblowers can now report on a wider range of issues affecting the EU’s financial interests and internal market.

Extended Protection for Individuals

• The law extends protection to a broader group of individuals, including:
  • Shareholders
  • Volunteers
  • Non-executive directors
  • Job applicants
• Employees are no longer required to have a public interest element in their disclosure for it to be considered a protected disclosure.

Revised Definition of Protected Disclosures

• While individual complaints about employee grievances can still be considered protected disclosures, they must not concern the worker exclusively.
• Reports of bullying or harassment between two workers would likely not qualify as a protected disclosure under this law.

Employer Obligations

• Employers with more than 50 employees are required to have internal reporting channels and procedures in place for whistleblowing and follow-up on complaints by December 17, 2023.
• These measures aim to ensure that whistleblowers can report concerns anonymously or confidentially.

Penalisation and Compensation

• The new legislation broadens the definition of penalisation, including any act or omission that causes unjustified detriment to a worker. Examples include:
  • Ostracism
  • Withholding promotion
  • Failure to convert a temporary employment contract into a permanent one
  • Harm to the worker’s reputation
• Whistleblowers who suffer penalisation can claim compensation of up to five years’ remuneration, while those not paid by the employer may be eligible for a maximum of EUR 15,000.
• Employers found guilty of penalising whistleblowers or failing to implement internal reporting channels and procedures can face fines ranging from EUR 5,000 to EUR 250,000.

Recommendations for Employers

• Review and update your whistleblowing procedures to comply with the new law.
• Ensure that managers are familiar with Irish whistleblowing law.
• The Protected Disclosures (Amendment) Act 2022 is available online for further reading.