Law change limits the pay-off boost of whistle-blowing claims

The UK’s whistle-blowing laws were “never intended to become a means for people to dress up their own private agendas” as Guy Dehn, founder of whistle-blowing advice service Public Concern at Work, put it. Yet employers would say this is how many start.A recent law change means lodging a whistle-blowing claim may now reduce the chance of a settlement. The Public Interest Disclosure Act 1998 (Pida) protects those raising concerns about illegal or unsafe working practices. Employees or workers who suffer detrimental treatment for “blowing the whistle” can obtain uncapped compensation.

This has led to many executives, with no discrimination grounds other than age with which to overcome the unfair dismissal £65,300 compensation cap, using whistle-blowing tactically to boost termination packages. Case law has acted as an incentive (see panel, right).Since April, claimants need only tick a box on their tribunal ET1 form to have their claim passed to the appropriate regulator. Employers are likely to be wary of regulator scrutiny, whether the claim is merited or not, which puts employees in a stronger position to negotiate termination payouts prior to lodging a claim.