Whistleblower Protection: Employers Must Act Now to Avoid Penalties
A significant change has come into effect in Ireland, introducing enhanced protections for whistleblowers who report wrongdoing within their workplaces. The Protected Disclosures (Amendment) Act 2022 aims to strengthen whistleblower protection and penalize employers who retaliate against employees for speaking out.
Timely Feedback Crucial
Under the new legislation, employers are required to provide feedback to employees who make protected disclosures within a reasonable period, but no more than three months from the date of acknowledgement. Additionally, where an employee requests feedback, further updates must be provided at intervals of three months until the procedure relating to the disclosure is closed.
Penalisation: What Constitutes it?
The Act defines penalisation as any act or omission that affects a worker to their detriment, including:
- Suspension
- Dismissal
- Demotion
- Unfair treatment
- Coercion
- Intimidation
- Threats of reprisal
The new law significantly broadens this list, incorporating additional acts such as:
- Ostracism
- Withholding of promotion
- Harm to the employee’s reputation
Consequences for Employers
If an employer is found to have penalised a worker for raising a protected disclosure, the Workplace Relations Commission (WRC) can award compensation up to five years’ remuneration. The WRC can also reduce any award by up to 25% if the investigation of the wrongdoing was not the sole or main motivation for making the disclosure.
Key Takeaways for Employers
- Review and update your whistleblowing procedures to comply with the new legislation
- Ensure that managers are aware of the provisions of whistleblowing law in Ireland and have a local procedure in place, especially those with more than 250 employees
- Failure to do so may result in penalties and legal action
New Offences
The Act introduces several new offences for employers, including:
- Hindering workers from making reports
- Penalising or threatening to penalise whistleblowers
- Breaching confidentiality duties
- Failing to establish internal reporting channels and procedures
Fines range from €5,000 to €250,000, depending on the offence.
What You Need to Know
- Employers with more than 250 employees must have a local procedure in place by December 2023
- Those with between 50-250 employees should prepare to do likewise
- It is recommended that employers with less than 50 employees also establish a procedure to ensure any whistleblowing complaints are dealt with appropriately
Stay ahead of the curve and avoid potential penalties by ensuring your organisation complies with the new whistleblower protection legislation in Ireland.