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WHAT SHOULD BUSINESSES BE DOING IN 2019?
The Whistleblower Act as passed reflects a number of changes introduced by the Senate including: –– a disclosure will not be protected for a personal work-related grievance; –– low level supervisors and managers are excluded from the class of persons to whom a disclosure can be made; –– whistleblowers have the ability to make a claim for compensation against a company if the company allows a third party to victimise the whistleblower;
Public companies and large proprietary companies (as defined in the Corporations Act) will need to put in place a whistleblower policy by 1 January 2020. Australian public and large proprietary Companies will need to review their company’s existing whistleblowing policies and programs to ensure they address the key features required under the incoming whistleblower legislation. The policy should be easily accessible to all staff and the program should be regularly communicated to ensure continued staff awareness. Mandatory training is recommended for all staff on a regular basis, and key staff who are responsible for the core elements of the program should be nominated. Even if a company is not required to put in place a whistleblower policy, it is important to recognise that all whistleblowers must still be treated in accordance with the requirements of the new regime. The protection of whistleblowers is paramount, and we recommend that any report that may qualify as a whistleblower report is treated with appropriate sensitivity within your organisation.
–– due diligence was removed as a complete defence to certain compensation orders (but it is one factor that Courts can consider); –– introduction of a six-month period following commencement for companies to comply with
the requirement to have a whistleblower policy; and
–– an increase in penalties in line with the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019 (Cth). Civil and criminal penalties will apply to those persons involved in victimisation, or threatened victimisation, of a whistleblower and persons who breach the requirement to protect the identity of a whistleblower.
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