How the new rules of whistleblowing will affect businesses

By Harrison Drury

03 Jul 2013

Major changes to legislation protecting workplace whistleblowers have significant implications for employers. Roger Spence, employment law partner at Harrison Drury solicitors, discusses the main issues for businesses.

Whistleblowing is the reporting of a suspected wrongdoing at work and employees have automatic legal protection against unfair dismissal if they are fired or if they are less favourably treated after making a ‘protected disclosure’ which includes:- health and safety risks damage to the environment criminal offence by an employer a company failing to honour its legal obligations covering up a wrongdoingThe public interest ‘elephant in the room’

On 25 June 2013 an extra test for protected disclosures was introduced. This means whistleblowers must now show that they ‘reasonably believe’ their disclosure is in the ‘public interest’ – a term not defined in law.

This lack of a definition is less of an issue for employers than might be imagined because the crux of the matter is whether whistleblowers can establish that they had a ‘reasonable belief’ that they acted in the public interest.

In cases where the public interest is in doubt, the general consensus is that the ‘elephant test’ will be applied by the courts– in other words, ‘you will know it if you see it’.

In good faith?

Another major change is that employees no longer need to make disclosures in ‘good faith’. Although there has been some concern among employers about the abolition of this requirement, tribunals can penalise the whistleblower by now reducing compensation by up to 25 per cent if the disclosure was not made in good faith.

It should also be kept in mind that employees will still be encouraged to broach issues firstly with their employer.

Just as importantly, protection for broader disclosure – notably going to the media – is only available if the issue is very serious, or if the whistleblower has already made a disclosure to their employer or a ‘prescribed person or body’, for example HM Revenue & Customs or the Serious Fraud Office.

The need to consider victimisation

The new law additionally means employers will be indirectly or ‘vicariously’ liable if other workers victimise a whistleblower. This aligns the law in this area with general discrimination law where employers are held responsible for the acts of their workers.

Good news or bad news for employers?Although time will tell, the new rules place an additional hurdle in the way of whistleblowers as they must establish they reasonably believe the disclosure is in the public interest. To that extent the changes are not entirely unwelcome for employers – and may in fact create a more efficient and transparent legal framework.

Latest news

1

Landmark moment for Eden Project Morecambe Landmark moment for Eden Project

Landmark moment for Eden Project Morecambe

25 Jun 2026

2

Preston consultancy joins growing national group Senior Representatives From Enevo And Aegis

Preston consultancy joins growing national group

25 Jun 2026

3

Chamber chief to step down Miranda Barker

Chamber chief to step down

23 Jun 2026

4

Loom Loft makes Growth 100 list Loom Loft team

Loom Loft makes Growth 100 list

23 Jun 2026

5

Green light for Longton homes scheme Story Homes plans

Green light for Longton homes scheme

23 Jun 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Brysdales, Britannia Buildings Drumhead Road, Chorley, PR6 7BX

16:00 - 18:00

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2Q

08:30 - 10:30

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

How can smarter employee benefits reduce costs and improve staff retention?
Screenshot 2026-05-20 100211.png.png
LBV Hub Roundtables
25 Jun 2026

How can smarter employee benefits reduce costs and improve staff retention?

Forbes Solicitors , Preston, PR5 6AW

08:30 - 10:00

NO Rackets Required - The Ultimate Padel Party
Crowdfunder.png.png
LBV Hub Social
26 Jun 2026

NO Rackets Required - The Ultimate Padel Party

Pendle Padel Club, Nelson, BB9 5SR

16:00 - 00:00

How hackers target SMEs - and how to protect your business
Lancashire_gamesdesign_Feb26-2120.jpg.jpg
LBV Hub Seminars
02 Jul 2026

How hackers target SMEs - and how to protect your business

Engineering Innovation Centre, Preston, PR1 2XS

09:30 - 11:30

Chamber Breakfast Networking - July
LBV Hub Networking
02 Jul 2026

Chamber Breakfast Networking - July

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

The AI Lab: Marketing Multiplier
Event post 03.07.png.png
LBV Hub Seminars
03 Jul 2026

The AI Lab: Marketing Multiplier

Door4, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:30

Clubhouse Business Network sponsored by Orca Finance - July 2026
padel-networkpng.png.png
LBV Hub Networking
09 Jul 2026 - 09 Jul 2026

Clubhouse Business Network sponsored by Orca Finance - July 2026

Clubhouse, Blackburn, BB1 3NT

14:00 - 16:00

Society1 Breakfast Social and Coworking Day
LBV Hub Networking
09 Jul 2026

Society1 Breakfast Social and Coworking Day

Society1, Coworking Space, Preston, PR1 3LT

09:00 - 17:00

Chamber Summer BBQ
LBV Hub Social
09 Jul 2026

Chamber Summer BBQ

The Borough , Lancaster, LA1 1PP

17:30 - 20:00

Preparing for the changes to unfair dismissal
Logo.jpg.jpg
LBV Hub Seminars
15 Jul 2026

Preparing for the changes to unfair dismissal

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin