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

New India branch campus on the horizon for Lancaster University Keir Starmer meets Indian PM and included Prof Simon Guy Lancaster University. Pic Simon Dawson

New India branch campus on the horizon for Lancaster University

09 Oct 2025

2

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026 Best Events and Talented students on Lancashire Tourism Awards finalist list

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026

09 Oct 2025

3

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards Andrew Dewhurst with the award win

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards

09 Oct 2025

4

PHX Training appoints new business leader in Blackpool Jason Davenport PHX Training

PHX Training appoints new business leader in Blackpool

09 Oct 2025

5

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 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
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

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

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

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