Whistleblowers have made serious allegations at one in four Irish firms The Irish Times

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One in four Irish businesses have received a protected disclosure alleging serious wrongdoing in the last three years, according to a recent survey by business law firm Mason Hayes & Curran.

The survey, which received more than 200 responses, was carried out at the firms whistleblowing and white collar crime webinar.

The event focused on the recent Protected Disclosures (Amendment) Act 2022, which imposes significant obligations on employers in Ireland to facilitate and support workers in making protected disclosures internally and has a knock-on impact for white collar crime.

About 85 per cent of industry professionals said white collar crime is not sufficiently enforced in Ireland. Additionally, 15 per cent of organizations said they did not have a process in place where a worker can make a protected disclosure.

Proving white collar crime is notoriously difficult, said Mason Hayes & Curran partner Peter Johnston.

The recent establishment of the Corporate Enforcement Authority, with its increased powers and resources, should increase the investigation and enforcement of company law breaches which will in time hopefully address the perceived lack of enforcement.

Employers with more than 50 employees have a duty to establish, maintain and operate internal reporting channels and procedures, according to Mason Hayes & Curran partner Elizabeth Ryan.

She said the new legislation requires employers who receive a protected disclosure to acknowledge receipt of the disclosure within seven days.

They must also diligently follow up on the disclosure, which may include an investigation, she said. Importantly, employers are not legally obliged to follow up on anonymous disclosures.

The Act expands the definition of workers to include job applicants, shareholders, members of boards and volunteers.

It is important to ensure all workers, even if they are external to an organisation, are aware of its reporting channels and procedures, added Ms Ryan.

The list of actions which could constitute penalization has been expanded to include negative performance assessments, harm to reputation via social media and psychiatric or medical referrals.

Mason Hayes & Curran partner Liam Guidera said one of the important questions he would ask his clients at the outset of a protected disclosure investigation is: What is the scope of this protected disclosure, is potential criminality being alleged and what is the aim or purpose of the investigation?

Eighty per cent of respondents said it would be inappropriate for workers who make a protected disclosure to receive a monetary award, which is currently the case in other countries such as the United States.

Steve Young, chief executive of the Associate of Corporate Investigators, said: Generally, we support reward programs to encourage whistleblowers to come forward.

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