Whistleblowing and the Economic Recession: 10 years of the PIDA

Catherine Hobby, School of Law, University of East London

Protection from Disclosure Act 1998

The Public Interest Disclosure Act (PIDA) 1998, came into force on 2 July 1999 and amended the Employment Rights Act (ERA) 1996 to provide statutory protection to whistleblowers against dismissal and victimisation if they disclose information in respect of their employer’s criminal, dangerous or damaging activities.

Protected Disclosure

A ‘protected disclosure’ is a ‘qualifying disclosure’ under s 43B of the ERA 1996.

A qualifying disclosure is a disclosure of information which, in the reasonable belief of the worker making the disclosure, relates to the following –

(a) a criminal offence (b) failure to comply with a legal obligation (c) a miscarriage of justice (d) health or safety (e) environment, (f) deliberate concealment of any matter falling within

any one of the preceding paragraphs

Protection

Protection is provided if the Qualifying Disclosure is made good faith to:

To Employer or Other Responsible Person Legal Adviser Minister of Crown Prescribed Person (Regulator) Non-Prescribed Person in Exceptional Cases

Remedies

Not to be subjected to a detriment Automatic Unfair Dismissal

Unlimited Compensation

In 2008 employment tribunals received 1,700 claims involving PIDA allegations

Effective Remedy?

“For some, whistleblowing may become a form of professional suicide that can effectively end a career”

(Gobert & Punch (2000) ‘Whistleblowers, the Public Interest and the Public Interest Act 1998’)

Present economic climate can only intensify workers’ fear regarding future employment

10 Years of PIDA

Development of legal principles through case law

Extension of Prescribed Person List Some worker awareness of protection Development of Whistleblowing policies Increased Recognition of the value of

whistleblowing Change in perception of a whistleblower Increase in PIDA applications

Key Cases

Include: Street v Derbyshire Unemployed

Workers’Centre (good faith) Woodward v Abbey National (ex-employees) Virgo Fidelis Senior School v Boyle

(compensation for injury to feelings) Bolton School v Evans (PIDA not cover

investigation of concern) Cumbria CC v Carlisle- Morgan (vicarious

liability)

Benefits of Whistleblowing

Individual right but collective responsibility Good Practice Accountability Culture of Openess in Workplace Whistleblowing is “both an instrument of good

governance and a manifestation of a more open culture” (Getting the Balance Right, The Committee on Standards in Public Life, January 2005)

Change of Culture?

86% of UK employees would feel comfortable blowing the whistle if they suspected fraud or

other wrongdoing. Survey by Ernst & Young June 2007

85% of people in work would raise a whistleblowing concern internally. If in doubt about internal route over 50% would raise the

matter externallyYouGov survey May 2007

Limits of PIDA

Exclusion of civil servants from protection of PIDA 1998 under s 43B(3) of ERA 1996

Requirement of good faith Need to show reasonable belief Burden of Proof on Employee Individual Claim Not cover hiring Judicial Interpretation of provisions Data Protection

Whisteblowing Procedures

PIDA does not require the establishment of a whistleblowing procedure to allow employees to raise concerns

The Act indirectly encourages the implemenation of effective whistleblowing policies

A Whistleblowing policy provides a mechanism through which concerns can be addressed

Role of Trade Unions

Assist in establishing a culture of openness Watchdogs Support for members who raise concerns Representation of whistleblowers

BUT victimisation of officials who are recipients of concerns

Consultation: Employment tribunal claims and the PIDA

Opened 3rd July and closed 2nd October 2009

How the substance of how allegations of underlying abuse in PIDA cases might be addressed

Issue raised during passage of Employment Act 2008

BIS Proposal

Employment Tribunals to send copies of ET1 or extracts from it

Only claims accepted by tribunals and where PIDA is identified as a jurisdiction would be subject to process

Express consent of claimant required Statutory Instrument to amend Employment

Tribunal Rules

Reward for Whistleblowing?

Review of Assets Recovery Agency by Home Office considered the American False Claims Act 1986. (FCA)

2006/07, US Government recovered $42 b under FCA of which $177 m went to whistleblowers

Whistleblowing of value in hi-tech, globalised and out sourcing economy where UK Government awards massive contracts to private sector

International

Article 33 UNCAC Report of Working Party established under

Article 29 of 95/46/EC in 2006 Legislation introduced in countries such as

New Zealand and South Africa

Future

Whistleblowing claims to rise with increase of City workers seeking redress?

Number of tribunal cases where worker claims victimisation or dismissal for whistleblowing rose 31% in 2008

Claims have almost tripled in two years Culture of whistleblowing to change further

with possible regulatory reform Commercial use of whistleblowing

Way forward

Promotion of Benefits and Culture of Whistleblowing

Adoption of anti-discrimination model of protection

Recognition of Advisory Role of Trade Union Officials

Mandatory Whistleblowing Procedures Increased Regulation & Accountability Reward for Whistleblowing

Reform of PIDA

Reform of PIDA – recognition of discrimination based on choices

Removal of the requirement of good faith Protection against malicious allegations Reasonable belief to be replaced with

reasonable suspicion Outlaw discrimination in hiring Right to raise concern

Development of the Law

Promotion of Whistleblowing through regulatory legislation

Duty to disclose Value of Anonymity v Confidential Collective responsibility in the workplace Development of the right to disclose based on

the human right of freedom of expression