Rewarded for Whistleblowing?

The EU is considering whether US style ‘bounty payments,’ should be paid within the European Union which would affect the UK as a member state.

In the United States, ‘bounty payments,’ have been recently introduced for whistle blowing in the financial services sector. Rewards of between 10 and 30% of any sanction to those found guilty of breaches, may be claimed for anonymous whistleblowers. They have been introduced in the wake of global financial scandals such as the LIBOR scandal; (relating to the over-fixing of of the inter-bank lending rate) and the intention is to try and avoid such scandals in the future.

In the UK, there have been a number of significant whistleblowing scandals across a variety of sectors, including alleged lapses of care in the NHS and public concerns over gagging clauses. It is unclear as to whether or not if implemented, the UK would would extend the rewards beyond the financial sector.

Recently, there have been some changes made to UK law to help ensure that disclosures are made in the public interest, and we are now waiting for a response from the government to the Department for Business Innovation and Skills’ call for evidence on the UK’s whistleblowing laws. It is anticipated that there may be a Code of Practice applying to employers in a variety or different sectors.

Currently, in the UK those who make ‘protected disclosures,’ are afforded a level of legal protection. Nonetheless, there are a number of different issues that can surround whistleblowing and employees. It has been observed that employees have made protected disclosures in order to try and divert attention from disciplinary or poor performance cases and offering financial rewards may well encourage this. Further, financial rewards may encourage complaints that could be argued are not borne out of genuine concern for public interest or genuine good faith. On balance, it is also observed that employees may be cautious of blowing the whistle, in fear of victimisation or automatic unfair dismissal. It has been suggested that introducing rewards similar to those highlighted in the US, may help to reduce such fear.

Whilst every effort has been made to maintain accuracy throughout this article, Nationwide Employment Lawyers cannot accept responsibility or liability for any errors. This article is intended for guidance purposes  only and does not constitute specialist legal advice. Nationwide Employment Lawyers accept no responsibility or liability whatsoever for any action taken or not taken in relation to this article and recommend that appropriate legal advice be taken in all circumstances.