Whistleblowing

In 2021 we predict

A surge in healthcare and supply chain whistleblows.

The picture in 2020

• Reports to the FCA of inappropriate behaviour in the financial services sector leapt by 35%. At the start of the year, there were up to 4 open investigations by the FCA into Whistleblowers’ Champions but no final notices were published.
• According to whistleblowing charity Protect, over 40% of “employees with coronavirus concerns” have been ignored and 20% dismissed. Those concerns relate to, for example, workplace safety, biosecurity breaches and furlough fraud. The FCA reportedly received nearly 50 whistleblows “on coronavirus-related conduct at financial services firms” in the 6 months to September 2020.
• The EU27 began readying themselves for the coming into force of the EU Whistleblowing Directive, in late 2021. For over half of the Member States without comprehensive protection for whistleblowers, this will be a significant change.
• In the UK, 2 private member’s bills are calling for the broadening of whistleblower protections. The first, which seeks the establishment of a Whistleblowing Commission and the introduction of criminal offences relating to mistreatment or mishandling of whistleblows, had its second reading in the House of Commons. The second calls for the establishment of the Office of the Whistleblower and had its first reading in Parliament. It stops short of providing for the payment of bounties to whistleblowers, but includes provisions to give the Office powers to maintain a fund to support whistleblowers and to pay redress to individuals whose disclosure has harmed their employment, reputation or career.
• The All Party Parliamentary Group on Whistleblowing published a report, called Making Whistleblowing Work for Society, questioning whether the Employment Tribunal is the best way to provide redress to and deter reprisals against whistleblowers.

Looking ahead to 2021

• There will be a surge in healthcare and supply chain whistleblows - the impact of the COVID-19 pandemic has shone the spotlight on public health issues including in the healthcare sector and on the treatment of workers in supply chains, particularly manufacturing.
• Within the most regulated sector, financial services, the focus on developing a “speak up” culture will continue.
• Although the profile of these issues is on the rise, it is unlikely that there will be legislative change in the UK.

What does this mean?

• Businesses in the healthcare sector and in sectors with complex supply chains face a higher risk of significant whistleblowing issues, requiring a crisis management approach.
• Although these sectors are not required to do so, they should ensure they have procedures, not dissimilar to those in the financial services industry, for the processing and management of whistleblows, for carrying our investigations and for ensuring that those raising concerns are adequately protected.