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

Inspired plc acquired by HGGC Inspired logo

Inspired plc acquired by HGGC

19 Aug 2025

2

Lancashire uniform provider acquired in £12.5m deal Trutex images

Lancashire uniform provider acquired in £12.5m deal

19 Aug 2025

3

Burnley aircraft firm sees profits soar Safran Nacelles

Burnley aircraft firm sees profits soar

19 Aug 2025

4

Lancashire marina bought by Aquavista Fettlers Wharf Marina

Lancashire marina bought by Aquavista

18 Aug 2025

5

Work starts on new business units at Enterprise Zone Danny Pinkus Cllr Mark Smith and Robert Pinkus at Phase Two Of Enterprise Court

Work starts on new business units at Enterprise Zone

15 Aug 2025

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
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Tri-Site Survey Equipment Showcase
Linkedin Cover.jpg.jpg
LBV Hub Seminars
03 Sep 2025 - 03 Sep 2025

Tri-Site Survey Equipment Showcase

Harewood House , Leeds, LS17 9LG

09:30 - 16:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

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 LBV 123 Online Graphic
Subscribe now

Weekly news bulletin