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Whistleblowing: Employees
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Whistleblowing provisions do not affect an APS employee's right to complain to the Commonwealth Ombudsman about actions taken or decisions made by an agency. However, the Commonwealth Ombudsman cannot investigate complaints about actions taken or decisions made by:
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Whistleblowing can ... be encouraged through Codes of Ethics that compels employees to disclose information about observed wrongdoings. To build awareness of the benefits of, and thus encourage, publicizing the results of successful whistleblowing cases is needed.
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In the first legislations related to whistleblowing, the public sector was the priority; ... more recent laws have included the private sector. The most encapsulating device has proven to be the British PIDA. This law covers all “agents” at once: public officials, private sector employees, trainees and suppliers. This law, therefore, goes well beyond the lawful report of subordination that characterizes the relations of salaried work, to take equally into account the nature of commercial relations.
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This essay highlights the issues on whistleblowing and corruption. Generally, employees should be encouraged to voice their concerns about employers’ wrongdoings. Misbehaviours will put the interests of shareholders and other stakeholders at stake. They should be stopped. Proponents of whistleblowing argue that employees should put the interests of the society above them. It is the moral responsibility of concerned employees to let others know about the companies’ wrongdoings so that appropriate actions can be taken against the culprits.
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The personnel’s use of the whistleblowing system should not be made mandatory. With regard thereto, the French Ministry of Labour and Social Affairs emphasised in a letter sent to the CNIL that “the use of whistleblowing systems must not be compulsory, but be merely encouraged. (…) Making reporting mandatory would result in transferring to employees the employers’ duties to ensure compliance with the company’s internal rules of procedure. It can be argued ... that a compulsory reporting requirement would breach article L120-2 of the Labor Code as a requirement out of proportion with its objective”.
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SOX ... requires audit committees to take a role in whistleblowing and reducing corporate fraud. Section 301, amending the Securities Exchange Act of 1934, compels audit committees to develop reporting mechanisms for the recording, tracking, and acting on information provided by employees anonymously and confidentially. By mandating policies and protection for reporting wrongdoing, the SOX standards go beyond merely encouraging companies to be more responsive to employee whistleblowers.
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