The Protected Disclosures Act 2000 was replaced by the Protected Disclosures (Protection of Whistleblowers) Act 2022 on 1 July 2022.
The Protected Disclosures (Protection of Whistleblowers) Act 2022 continues the 2000 Act’s purpose.
It aims to facilitate the disclosure and investigation of serious wrongdoing in the workplace, and to provide protection for employees and other workers who report concerns.
However, the 2022 Act makes changes to address identified issues and improvements. Essentially, making disclosures about an organisation’s wrongdoings will be easier while whistleblowers will receive increased protection.
A significant change is that the new Act enables a person, from any organisation or business, to make a protected disclosure direct to an appropriate authority at any time – instead of needing to disclose the issues to their employer first.
The key changes in the 2022 Act are:
- extending the definition of serious wrongdoing to cover private sector use of public funds and authority and to cover behaviour that is a serious risk to the health and safety of any individual.
- allowing people to report serious wrongdoing directly to an appropriate authority at any time, while clarifying the ability of the appropriate authority to decline or refer the disclosure.
- strengthening protections for disclosers by specifying what a receiver of a disclosure should do.
- clarifying internal procedure requirements for public sector organisations and requiring them to state how they will provide support to disclosers.
- clarifying the potential forms of adverse conduct disclosers may face.
Why is this important to know for hospitality business owners?
In addition to the Act enhancing New Zealand’s international reputation as a transparent and honest society free from corruption, the Act is designed to support people who expose criminal, fraudulent or other serious misconduct in their workplace by protecting them from unfair dismissal or treatment.
This is a reminder that a strong ethical focus needs to be seen coming from the top to be embedded in an organisation. Directors, managers and employers have a key role in setting the tone for the organisation including by defining and leading the organisation’s ethical framework, purpose, values, and culture.
As business owners, it is your responsibility to set the tone for ethical conduct while reinforcing an inclusive, communicative, and transparent culture within the work environment. This includes encouragement amongst staff to speak up if there are issues which need to be addressed.
As a result of these changes, it is important to have in place a Whistleblower policy that entail speak-up procedures to help promote and support an ethical workplace culture.
Business owners should familiarise themselves with the changes in the Act and ensure their organisations review and update internal whistleblowing procedures for consistency with the Act as and when needed.
Key Takeaways:
- Private sector organisations are not required by the Act to establish internal procedures for protected disclosures, but it is highly recommended they do so.
- Private sector organisations must follow the provisions of the Act including those as a receiver of a protected disclosure.
- Some private sector organisations may be “appropriate authorities”. For example an appropriate authority as defined in the Act includes the membership body of a particular profession, trade, or calling with the power to discipline its members. Any such body should handle a protected disclosure in accordance with the requirements in the Act.
- While private employers are not required to have whistleblowing procedures and policies under the Act, it is good governance practice for directors to ensure their organisation has a policy on protected disclosures for both employees and contractors. The policy should be communicated to all workers, and incorporated in to their employment agreements. You can find a template here in our member resources.
- It would be wise for organisations to revisit their existing bullying and harassment policies.