The Public Interest Disclosure Act 1998 (PIDA) is landmark legislation that protects individuals who expose wrongdoing in their workplace. Commonly referred to as the ‘whistleblowing law’, it provides a framework for employees to report misconduct, fraud, or illegal activities without fear of retaliation.
In this comprehensive guide we look at the key provisions of the Act, its scope, and how it affects employees and employers.
What is the Purpose of the Public Interest Disclosure Act 1998?
The aim of Public Interest Disclosure Act 1998 is to encourage employees to come forward with concerns about unethical or illegal behaviour in their organisations by safeguarding them from victimisation or dismissal.
Whistleblowers play a crucial role in exposing issues that may otherwise remain hidden, such as financial malpractice, breaches of health and safety regulations, environmental hazards, or discrimination.
Who is protected under the PIDA?
The PIDA applies to a broad range of workers, not just employees under traditional contracts. It includes agency workers, trainees, and those on work experience. This broad scope ensures that many individuals who may encounter wrongdoing in the course of their work are protected when raising concerns.
However, self-employed individuals are generally not covered by PIDA because they are not considered workers or employees in the traditional sense. That said, there an exception: if a self-employed person is working for an organisation in a capacity that mirrors employment (such as being contracted to provide services under the direction and control of the organisation) they may have protection under PIDA.
For example:
- Protected: A self-employed IT consultant under contract to a company who is required to work on-site, follow company policies, and report to a manager. They could be seen as working in a capacity akin to employment, so if they blow the whistle on illegal software used by the company, they may be protected.
- Not protected: A freelance web designer working remotely for multiple clients and retaining full control over their work schedule and methods would not usually be covered by PIDA, as they operate independently and are not under the organisation’s control.
The following case study shows that there are other times when non-employees are protected when they blow the whistle.
Case study – Dr Nigel MacLennan
A significant whistleblowing case involved Dr. Nigel MacLennan, a trustee and president-elect of the British Psychological Society (BPS). In 2021, Dr. MacLennan reported substantial governance failings within the BPS to the Charity Commission. Subsequently, he was expelled from his position, leading him to pursue legal action, claiming his dismissal was a direct result of his whistleblowing activities.
Initially, the employment tribunal ruled that, as a trustee without an employment contract, Dr. MacLennan was not entitled to whistleblower protections. However, upon appeal, the Employment Appeal Tribunal overturned this decision, asserting that trustees should be safeguarded under human rights law, particularly concerning freedom of expression.
This landmark judgment underscores the importance of protecting individuals in governance roles who expose organisational misconduct, reinforcing the principle that whistleblowers should not face retaliation for acting in the public interest.
What information can be disclosed under the PIDA?
For an employee to receive protection under Public Interest Disclosure Act 1998, the information disclosed must be a qualifying disclosure (also known as a ‘protected disclosure’).
So, what is a protected disclosure?
Protected disclosures are information that an employee reasonably believes is in the public interest and shows one or more of the following:
- A criminal offence has been, is being, or is likely to be committed – for example, fraud, theft, or insider trading.
- A person has failed, is failing, or is likely to fail to comply with a legal obligation – for example, breaches of employment law, failure to meet health and safety regulations, or non-payment of wages.
- A miscarriage of justice has occurred, is occurring, or is likely to occur – for example, the wrongful conviction of an innocent person.
- The health or safety of an individual is endangered – for example, unsafe working conditions or exposure to hazardous substances without proper controls.
- The environment is being, or is likely to be, damaged – for example, illegal dumping of waste or pollution of water sources.
- Information about any of the above is being deliberately concealed – for example, shredding documents to hide evidence of fraud or environmental damage.
How to make a disclosure
To gain protection under the PIDA, whistleblowers must follow specific procedures when making disclosures. The method chosen can impact whether the disclosure is protected under the law:
Reporting to the employer
In most cases, whistleblowers are encouraged to report concerns internally within their organisation. Many companies have whistleblowing policies or procedures in place that outline how employees can raise issues confidentially, such as reporting to a manager, HR department, or a designated whistleblowing officer.
For example, an employee notices financial irregularities in their department’s accounts and reports their concerns to their line manager as per the company’s whistleblowing policy.
Reporting to a prescribed person or body
If the employee reasonably believes that internal reporting would not be effective, or if they fear retaliation from their employer, they can make a disclosure to an external authority.
PIDA provides a list of prescribed persons or bodies relevant to various industries, such as the Health and Safety Executive (HSE) for health and safety concerns or the Financial Conduct Authority (FCA) for financial misconduct.
For example, an employee working for a construction company notices that unsafe scaffolding practices are being ignored by management reports the issue directly to the HSE.
Making a public disclosure
Disclosures made to the media, or the public are protected only in very limited circumstances.
To qualify, the whistleblower must demonstrate that:
- The matter is of an exceptionally serious nature.
- They reasonably believe that reporting to their employer or a prescribed body would not address the issue, or they have already tried those channels without success.
- The disclosure is made responsibly, is not primarily for personal gain, and is reasonable given the circumstances.
For example, an employee discovers their company is knowingly selling unsafe products and, after repeated failed attempts to report internally and to a relevant regulator, shares the information with a journalist.
What should a whistleblower consider before making a disclosure?
Whistleblowers should consider the following before making a disclosure.
Act in good faith
Whistleblowers must ensure they are acting in good faith, with a reasonable belief that the information is true and in the public interest (see ‘What is the public interest test?’ below). Acting in good faith also helps ensure the whistleblower is protected under PIDA.
Whistleblowers should only make disclosures if they genuinely believe the information that they are reporting is accurate and pertains to wrongdoing that is in the public interest. This means the issue should not be based on personal grievances or unfounded suspicions.
Reporting financial misconduct within a company to prevent harm to shareholders and the public is likely to be considered in the public interest. However, reporting a minor internal disagreement or workplace conflict may not qualify.
Keep records
Whistleblowers should document and retain all relevant details of their disclosure to protect themselves if disputes arise. This includes recording:
- The date and time the disclosure was made.
- The method of disclosure (for example, email, written report, in-person meeting).
- The person or organisation to whom the disclosure was made.
- Any responses or follow-up actions taken by the organisation or individual receiving the report.
These records can serve as crucial evidence to support the whistleblower’s claim and demonstrate that they acted responsibly.
Consider legal advice
Obtaining legal advice can help whistleblowers ensure they meet the requirements for protection under PIDA, particularly if they are considering making a public disclosure or reporting outside their organisation.
It is a good idea to choose a solicitor who has had experience managing similar whistleblowing cases before.
A solicitor can clarify:
- Whether the issue qualifies as a protected disclosure under PIDA.
- The safest and most appropriate way to report the concern.
- The risks involved, especially if going to the media or making the disclosure public.
For instance, if a worker is considering disclosing serious environmental violations to the media because their employer ignored their internal report, seeking legal advice could help confirm whether this step is reasonable and protected.
What is the public interest test?
The public interest test is a critical element of the PIDA. It ensures that whistleblowing protections apply only to disclosures that have broader significance beyond personal or individual disputes. This test aims to strike a balance between protecting genuine whistleblowers and preventing the misuse of the law for purely personal grievances.
To meet the public interest test, the whistleblower must reasonably believe that their disclosure serves a benefit to society, a group of people, or a sector of the public, rather than addressing solely private concerns. The belief does not have to be correct, but it must be reasonable and in good faith. The tribunal will assess whether the disclosure has a genuine societal benefit when considering if it qualifies for protection.
Examples that meet the public interest test:
- Reporting unsafe working conditions that could endanger the health and safety of employees or the public.
- Disclosing financial fraud that impacts investors, shareholders, or taxpayers.
- Revealing environmental damage, such as illegal dumping or pollution, that affects the local community or ecosystem.
Examples that may not meet the public interest test:
- Complaining about a personal workplace issue, such as a manager’s unfair behaviour, without a broader impact.
- Disputes over individual pay or bonuses, unless the issue has wider implications, such as systemic underpayment of staff.
While personal interest and public interest can sometimes overlap, the public interest must remain the primary focus of the disclosure for PIDA protections to apply.
How are whistleblowers protected?
Under the Public Interest Disclosure Act 1998, whistleblowers are protected from retaliation by their employers when they make a qualifying disclosure. This means employers are legally prohibited from dismissing, demoting, harassing, or otherwise treating whistleblowers unfairly because of their disclosure.
Protections apply even if the worker no longer works for the organisation, ensuring that whistleblowers are safeguarded against repercussions during and after their employment.
If a whistleblower believes they have been retaliated against, they have the right to bring a claim to an Employment Tribunal. The tribunal can award compensation if it determines that the whistleblower was unfairly treated. Unlike standard unfair dismissal claims, compensation in whistleblowing cases is uncapped.
Whistleblowers can also seek interim relief, which is a temporary measure designed to protect them while their case is ongoing. For example, they could request reinstatement to their role or protection from further retaliation during the legal process.
What are an employer’s responsibilities under PIDA?
To comply with whistleblower protection laws and foster a culture of transparency and accountability, employers must take proactive steps to ensure whistleblowing is encouraged, managed effectively, and protected. Key responsibilities include the following:
Developing a whistleblowing policy
Employers should establish a clear and comprehensive whistleblowing policy that provides employees with a safe and structured way to report concerns. The policy should include:
- Step-by-step procedures for raising concerns, such as who to approach (for example, managers, HR, or designated whistleblowing officers).
- Information about the protections afforded to whistleblowers under PIDA.
- Assurance that concerns will be taken seriously and investigated promptly.
The policy should be easily accessible, included in employee handbooks, and reviewed regularly to ensure it remains up to date. Including examples of reportable misconduct (such as fraud and safety breaches) can help employees recognise what constitutes whistleblowing.
Providing training and awareness
Whistleblowing Training for employees is important to:
- Emphasise the importance of whistleblowing to prevent wrongdoing and protect the organisation.
- Highlight the legal protections under PIDA and clarify the organisation’s commitment to upholding them.
- Provide managers with training on how to handle disclosures responsibly, including how to respond to concerns and escalate them appropriately. Our Whistleblowing Training for Managers is aimed at those with leadership responsibilities.
Ensuring confidentiality
Maintaining confidentiality is critical to protect whistleblowers from potential harm or retaliation.
Employers should:
- Manage reports discreetly and only share information with those directly involved in the investigation.
- Reassure whistleblowers that their identity will not be disclosed without their consent, unless legally required.
- Implement secure reporting channels, such as dedicated email addresses, hotlines, or online forms, to encourage employees to come forward without fear of exposure.
Offering anonymous reporting options, where possible, can further reassure employees who are hesitant to speak up.
Zero-tolerance to retaliation
Employers must ensure whistleblowers are not subjected to negative treatment as a result of their disclosures.
Retaliation could include:
- Direct actions: Dismissal, demotion, reduction in hours, or reassignment to undesirable tasks.
- Indirect actions: Exclusion from team activities, bullying, or creating a hostile work environment.
Employers must have measures in place to prevent retaliation, such as monitoring the treatment of whistleblowers after a disclosure and taking swift disciplinary action against anyone found retaliating.
Failing to protect whistleblowers can lead to legal claims for unfair dismissal or discrimination, as well as significant reputational harm.
Whistleblowing training for employees and managers
The Public Interest Disclosure Act 1998 is a cornerstone of the UK’s commitment to transparency, accountability, and fairness in the workplace.
Our Whistleblowing Training provides employees with a comprehensive understanding of the law for whistleblowers and how to report concerns. We also offer Whistleblowing Training for Managers which supports managers to promote a culture of openness and trust in the workplace where employees feel confident to raise concerns.
You can find out about Whistleblowing Training and Whistleblowing Training for Managers on our website, or talk to our friendly team on 0203 011 4242/ info@praxis42.com
Please note we can tailor whistleblowing training to your organisation, roles and activities.
Adam Clarke
Managing Director (Consulting)
