Rise in whistleblowing claims: what employers need to know

In order to learn how to manage whistleblowing it is important to first understand what has contributed to this increase.

The past year has seen everything from a dramatisation of the Post Office Horizon scandal to an investigation into allegations of harassment at Harrods. These high-profile cases are not isolated: whistleblowing claims in the employment tribunal are also on the rise. The Financial Times (FT) reported that the number of whistleblowing claims in the employment tribunal increased by 92% between 2015 and 2023. The Financial Conduct Authority (FCA) also identified an increase in its prescribed persons annual report for 2023/24 and reported a total of 1,124 new whistleblower reports between 1 April 2023 and 31 March 2024.

Why has there been a rise?

Increased awareness and cautious reporting

The legal framework for whistleblowers protects both workers and employees from being subject to detriment, and employees from automatic unfair dismissal. The increase in whistleblowing claims corresponds to the growing awareness of these legal rights. In fact, according to Protect, awareness of whistleblower protections nearly doubled from 26% in 2013 to 48% in 2021.

In addition to the increased awareness, employees are also being encouraged to raise their concerns. In a post #Metoo world, there is a greater focus on improving whistleblowing at a national level and urging people to speak up. Recent developments include:

• a private members bill which seeks to introduce an independent Office of the Whistleblower with the aim of setting and enforcing standards for the management of whistleblowing cases, including addressing detriment suffered by whistleblowers. A second reading of this bill is due to take place at the end of April 2025

• in December 2024, the Royal United Services Institute suggested the introduction of whistleblower incentive payments as a way to reduce economic and white-collar crime. Although this suggestion has not yet gained any traction with lawmakers, it forms part of a wider discussion around the importance of speaking up

• the Employment Rights Bill is set to add sexual harassment as a new standalone category of wrongdoing for whistleblowing disclosures.

Given the focus on whistleblowing and the drive to improve the legal framework that facilitates it, employees are now more likely to be vocal about wrongdoing (or perceived wrongdoing) and willing to take action when they believe that their treatment is in response to whistleblowing.

Better protection

Whistleblowers can be afforded greater protection and more significant remedies than claimants in other employment tribunal claims. This includes:

• financial compensation 
  There is no upper limit on the amount of compensation that can be awarded in unfair dismissal or detriment cases that involve whistleblowing

• qualifying period 
  There is no qualifying period to bring a whistleblowing claim; unlike unfair dismissal claims which have a two-year qualifying period (although this is set to change under the Employment Rights Bill)

• interim relief
  In automatic unfair dismissal claims, where whistleblowing is alleged to be the cause of the dismissal, a tribunal can order an employer to either restore an employee’s employment or continue to pay their salary until the final hearing. 

A cynical view would be to attribute the increase in whistleblowing claims to the benefits and protections afforded to whistleblowers. However, these protections must be considered with the broader context that whistleblowing can be an intimidating, and sometimes risky, act. As a result, these protections and remedies should be seen as a response to the risks associated with whistleblowing as opposed to an incentive to bring a claim. 

What does this mean for employers?

There are a number of steps employers can take to either avoid whistleblowing claims altogether or to support staff when a complaint has been made.

• culture 
  A Bloomsbury Square survey from 2024 found that of 2,000 UK workers 51% would not feel safe blowing the whistle to their employer if they believed that their employer was breaking the law. This mistrust can lead to employees escalating matters externally, usually to a regulator or the employment tribunal, rather than pursuing internal processes. When employees feel comfortable enough to raise concerns without fear of retaliation, they will be more likely to utilise internal processes rather than pursuing claims.

• channels for reporting wrongdoing
  Although the requirement to have a whistleblowing policy only applies to certain regulated firms, it is still advisable to have a policy in place that sets out the reporting channels for staff who want to raise concerns and explains how those concerns will be dealt with. The FCA (which has been vocal in its support of whistleblowers and published steps on improving whistleblower confidence in 2023) published the findings on its survey of culture and non-financial misconduct in 2024, in which it advises employers to foster a speak-up culture with safe avenues for reporting.

• comprehensive training 
  The risk of a claim not only applies to employers but also to officers and employees. It is within every employer’s best interests to train staff so that managers are confident in their ability to identify whistleblowing. This training should include promoting internal policies and processes and informing staff of updates and changes.