Psst! Here's What You Should Really Know About Whistleblowing!

Whistleblowing is when an employee discloses information about wrongdoing or illegal activity within a company that may affect others, such as the public. It is related to the actions of the organisation's staff but could also include customers or suppliers.

As an employer, we should encourage employees to raise attention internally rather than externally by promoting an open and supportive company culture, as well as writing a comprehensive whistleblowing policy.

It is easier for management to address concerns when employees prefer to report internally at an early stage as it will avoid more serious offences or reputational damage.

If an employee reports improper conduct internally, the company should act immediately.

The difference between whistleblowing and grievance

A grievance is a situation that affects the employee personally; for instance, complaining about a coworker's attitude.

A whistleblowing complaint would normally expose an issue that would affect the wider public. It's more prevalent in the financial sector, for instance, if an employee is concerned that a coworker is giving improper or inaccurate advice to customers.

Whistleblowing in Malaysian law

The Whistleblower Protection Act 2010 is made to combat corruption by encouraging disclosures of improper conduct.

Among the disclosures are:

abuse of authority,
violation of laws and ethical standards,
danger to public health or safety,
gross waste,
illegality, and
mismanagement.

The disclosure should be made in "good faith" based on "honest and reasonable grounds at the material time" without requiring hard evidence from the whistleblower.

Under Section 6(1) of the Act, a person can disclose improper conduct to any enforcement agency based on their reasonable belief that any person has engaged, is engaging or is preparing to engage in improper conduct, provided that any written law does not specifically prohibit such disclosure.

The enforcement agencies will gather the evidence and ensure that the whistleblower is not compromised. But, whistleblowers can provide proof if it is legally available through the course of their work.

Disclosure of the confidential information will be liable to a fine not exceeding RM 50,000 or to imprisonment for a term not exceeding ten years or both.

A whistleblower cannot be subjected to any civil action or criminal liability. No administrative process can be taken against the whistleblower for disclosing improper conduct.

Company whistleblowing policy

While it is not a legal requirement, it's always a good idea to create a whistleblowing policy for your organisation. It will help you to manage the process and train managers on how to deal with whistleblowing.

Here's what you should include in your whistleblowing policy:

An explanation of what whistleblowing is
Scope of the policy, a list of misconduct
Procedure in making a disclosure
Protection to whistleblower
What the investigation and possible outcomes of the disclosure will look like

It's always a good idea to have a company whistleblowing policy.

Company whistleblowing procedure

If your employee wants to blow the whistle, they should talk to the person specified within the whistleblowing policy. This person should reassure the employee that the disclosure won't affect their job in any way.

Once the whistleblower has made their information known, the company can arrange a meeting to understand the situation better.

Use the meeting to ask questions and gather relevant information. The discussion should be recorded and a copy given to the employee. Provide an idea of expected outcomes and timescales for when the employee will be updated.

Depending on the case, the issue may be settled within the meeting if both parties are satisfied with the decision. But, in other cases, you may need to conduct a thorough investigation.

Keep the whistleblower updated about how the company is dealing with their disclosure. If they see you as committed to resolving the issue, it will make them less likely to approach the authorities with their complaint.

Source: CitrusHR

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