Whistle-blowing set to soar in the City

Employment lawyers are predicting a rise in City workers bringing claims against their employers for breaching whistle-blower protection laws.

The number of employees claiming they have been sacked or disciplined for blowing the whistle on malpractice at work has soared in the last few years and is likely to rise further because of the economic downturn, says Jon Taylor, head of employment law at EMW Picton Howell.

Employment tribunals can award unlimited damages for breaches of whistle-blower protection laws, whereas unfair dismissal claims are capped. According to government figures, the number of tribunal cases where employees claimed to have been penalised for whistle-blowing rose 31% last year to 1,356 cases. Taylor says: “In the last two years we have seen the number of whistle-blowing claims almost triple.

“The reputational, as well as the financial, costs of such a claim could be disastrous for companies. We should see an increase in cases where City workers claim to have blown the whistle on irresponsible or unlawful sales, trading or risk management activities.

“However, whistle-blowing is not solely limited to cases of financial irregularity or criminal offences, as many people think. The scope of the legislation is so wide that it can encompass a huge range of ‘offences’. For example, staff can report employers for breach of any legal obligation, which could include breach of contract for failing to pay a bonus or breach of health and safety or harassment laws for failure to protect an employee who reports stress or bullying.”