At a glance

• The government is consulting on a legal duty for private sector employers with 50 or more employees, and all public sector employers, to maintain effective whistleblowing procedures, a written policy and follow-up on disclosures, backed by civil penalties.
• The government supports a Serious Fraud Office scheme paying whistleblowers a percentage of corporate fines for economic crime information.
• The consultation closes on 8 January 2027. Employers should consider responding, particularly on which employers should be in scope, how detailed and rigid any new requirements should be, and how they would be enforced.

The government has launched what it describes as the most comprehensive review of whistleblowing law since the framework was introduced over 25 years ago. Prompted by the EU Whistleblowing Directive, the success of US reward schemes and a series of UK scandals, the consultation aims to assess if the current regime still works and how it should be reformed.

For employers, two proposals stand out: a possible legal requirement to operate whistleblowing policies and procedures, and a new financial reward scheme for those reporting economic crime to the Serious Fraud Office (SFO).

Mandatory whistleblowing policies

What is proposed?

Currently, outside certain regulated financial services firms, employers are not legally required to have a whistleblowing policy, keep disclosures confidential, investigate concerns or update the whistleblower. The consultation...

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