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Employers Face Increased Threat of Whistleblowing Investigations From Disgruntled Employees- 03/03/2010
Employers could soon find themselves subject to investigation by regulatory authorities thanks to disgruntled employees using new ‘whistleblowing’ regulations, warns Bridgnorth law firm FBC Manby Bowdler LLP.
From 6 April 2010, employees making a claim to an Employment Tribunal about a dispute with their employer merely have to tick a box on their claim form to start a whistleblowing investigation, says Alasdair Hobbs, Partner and Head of Employment at FBC Manby Bowdler.
“A whistleblower is an employee who raises a concern about wrongdoing occurring in an organisation, often the same organisation in which he or she works. There are various acts of alleged misconduct capable of being reported to the relevant regulator via the Employment Tribunal claim form including criminal activity, health and safety violations, threats to public interest, and corruption,” says Mr Hobbs.
“The main concern about the new form is that it may give 'improper bargaining power' to employees when it comes to negotiating a settlement. It will enable well advised employees to exploit employer fears of a regulatory investigation to achieve an early settlement.
“When the ‘yes’ box is ticked the claim form will be sent to the relevant regulator and both employer and employee will be notified by the Employment Tribunal when it was sent and who it was sent to, so employers will know if they need to ready themselves for an investigation by the regulator. The new system will inevitably bring about an increase in cases being referred to regulators,” explains Mr Hobbs.
Should the regulator pursue a full investigation against an employer, FBC Manby Bowdler’s specialist Regulatory Crime team can assist in advising on the investigation and on corporate and individuals’ legal duties and responsibilities.
From its Bridgnorth, Telford and Shrewsbury offices, FBC Manby Bowdler provides specialist advice on all aspects of commercial and private law.