Business - Call for pay-offs to whistle-blowers
Pressure is mounting to raise the z45,100 ceiling on compensation paid to whistle-blowers who lose their jobs.
Further backing for Richard Shepherd’s private members bill, which went to its committee stage yesterday, was due to come from the CBI and TUC in a joint statement this week, calling for unlimited compensation.
Government plans to limit compensation payouts has angered business and the unions, who argued low payouts would be a disincentive to employees to report corruption and fraud.
The government fears high awards might create a temptation for employees to look for ‘whistles to blow’.
Tony Wedgwood, chairman of the English ICA’s working party on whistle-blowing, said risks taken by whistle-blowers were high.
‘An auditor’s duty is to his client’s shareholders, not to his client management,’ said Wedgwood. ‘A climate in which the client’s staff feel free to communicate their concerns can only assist the process.’