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Wednesday, November 27, 2024

Ethics on the Line: Hotlines in Canada vs. the US; the Impact of the Whistleblower Act on Corporate Culture - JD Supra

We’ve talked before about how speak-up culture is on the rise; 6,000 more anonymous hotline reports were filed in 2023 than 2022, according to the respondent of Mitratech’s 2024 State of Ethics Reporting Hotlines.

But beyond a spike in activity, hotline reporting and resources look a bit different all across the world. Hotlines in Canada, for example, have distinct regulatory environments, scope, retaliation protections, and legal framework than those in the United States.

What is the Whistleblower Act, and How Does it Impact Hotlines in Canada?

The Whistleblower Act is a legislative framework designed to protect individuals who report misconduct, fraud, or illegal activities within an organization. The specifics of the Act can vary by country, but the primary goals are to encourage reporting of unethical behavior and to protect whistleblowers from retaliation. Here is an overview of whistleblower protection acts in Canada and the United States, including how and where they differ.

The Whistleblower Act in Canada: Public Servants Disclosure Protection Act (PSDPA)

Enacted in 2007, the Public Servants Disclosure Protection Act (PSDPA) in Canada was designed to encourage employees in the public sector to report wrongdoing (eg. law violations, gross mismanagement, misuse of public funds) etc. while protecting whistleblowers from any form of retaliation, such as dismissal, demotion, or harassment by ensuring the confidentiality of their identity. The law applies to federal...



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