Whistleblowers collecting £10 million a year


Embargoed to 00.01, Wednesday 30 April

Over £10 million a year is being paid in compensation to employees who are sacked or victimised for blowing the whistle, according to a report published today (Wednesday, 30 April 2003) by the charity, Public Concern at Work. The highest award is £805,000, with the average payout at just over £100,000.

The report surveys the 1200 claims made in the first three years of the whistleblowing law, the Public Interest Disclosure Act. Successful cases detailed in the report include where the whistle was blown on -

  • The managing director who drugged and raped his personal assistant (PA) on a business trip to New York. When the London PA recovered, she blew the whistle on the risk posed to other female staff. When it was clear her concern was being ignored, she resigned. The tribunal held the company’s failure to investigate the concern was a detriment. Award £79,308. (See A v B & C, page 3)
  • The elderly patients hospitalised in a gynaecological ward. Mr Kay managed a ward for the elderly at Wansbeck Hospital in Northumbria. Frustrated at the Trust’s failure to deal with his concern about the shortage of beds, he wrote an open letter to the Prime Minister in his local paper pointing out that the elderly were being put into gynaecological wards. The Trust gave Mr Kay a final written warning for the letter. This action was then ruled as illegal under PIDA by the employment tribunal. (See Kay v Northumbia NHS Trust, page 13).
  • A charity for double-claiming expenses. Shortly after Hilary Brown joined the Welsh Refugee Council, she raised concerns that expenses were being double claimed. While the issue was being investigated and the director was suspended, the Council found a spurious ground to re-advertise Brown’s post and gave her one week’s notice. (See Brown v Welsh Refugee Council, page 8)
  • Bogus parking fines being issued to meet targets. A traffic warden warned Westminster Council that pressure to meet targets meant that bogus penalty notices were being issued. When Westminster told the contractor, Apcoa Parking, it suspended the whistleblower, Mr Azzaoui, and then insisted he identified the people involved. When Mr Azzaoui objected, he was sacked. (See Azzaoui v Apcoa Parking, page 5).
  • The funeral director who sexually assaulted staff. When North West funeral manager, Colin Arkwright, was told by two female staff that a director had sexually assaulted them, he raised the matter with the Chief Executive. As an investigation got underway, Arkwright was warned off mentioning the incident to anyone. The director then resigned to take a senior job in the police, and Arkwright was disciplined on bogus grounds. The tribunal said that rather than compliment the whistleblower, his employer, United CoOp, had victimised him. The tribunal case prompted the police to reopen their investigation and the senior director was prosecuted, convicted and jailed for 18 months for his “outrageous sex assaults”. Award £140,000. (see A v X, page 3).
  • The police inspector who destroyed evidence and prosecution files. When British Transport Police lawyer, Irene Bhadresa, discovered an inspector destroying prosecution files she reported it to the authorities. Despite assurances of confidentiality, she was cold shouldered by colleagues and rejected for a permanent post she had been promised. Award £218,000. (see Bhadresa v SRA, page 6)
  • The rail operator which paid lip service to safety concerns. Laurie Holden was concerned at the safety risks posed by drivers having to work longer hours. Connex, his employer, refused Holden’s requests to show him the statutory risk assessment. Exasperated, Holden told the Health & Safety Executive that he feared more trains would pass signals at red. Connex then embarked on a campaign to silence Holden and force the whistleblower out. Award £55,000. (See Holden v Connex, page 12).
  • The misleading information for a stock exchange listing. Bhatia worked for Sterlite Industries on mergers and acquisitions. He raised concerns with his chairman and the investment bank that a prospectus for listing on the New York Stock Exchange was misleading and this was put right. Later when he raised concerns that a transaction in Australia was illegal, the chairman threw his digital diary at Bhatia and threatened to destroy him. Bhatia resigned. Award £805,000. (See Bhatia v Sterlite Industries, page 6)

Commenting on the report, Guy Dehn, director of the whistleblowing charity Public Concern at Work said “It’s no longer whistleblowers who are paying a heavy price - but those who victimise them. These cases show how much we need whistleblowers if we are to turn the tables on crime, complacency and cover-up in the workplace. With such high awards and with tribunals protecting people who blow the whistle to regulatory bodies and to the media, employers ignore this legislation at their peril”.

View the report.

Notes for editors

  1. Public Concern at Work is a charity and receives no state aid. Now in its tenth year, its free legal helpline for whistleblowers has handled over 3000 concerns. Public Concern at Work also provides training and guidance for employers and unions. The charity promoted the Public Interest Disclosure Act and seeks to influence policy on accountability, governance and regulation.
  2. The Public Interest Disclosure Act was a private member’s bill, introduced by Richard Shepherd MP and backed in and out of Parliament. It came into force on 2 July 1999. Unlike most employment legislation, it has no limit on compensatory awards and protects workers from their first day of employment