New Zealand Protected Disclosures Act 2022

The New Zealand Protected Disclosures (Protection of Whistleblowers) Act 2022 is a significant piece of legislation designed to encourage and protect individuals who report serious wrongdoing in their workplace. This Act, which came into force on 1 July 2022, replaces the earlier Protected Disclosures Act 2000, addressing previous gaps and enhancing protections for whistleblowers. This summary explores the key aspects of the Act, its purpose, and the protections it offers to those who disclose misconduct.

Background and Purpose

The primary aim of the Protected Disclosures (Protection of Whistleblowers) Act 2022 is to facilitate the disclosure and investigation of serious wrongdoing within organisations, both public and private, and to protect individuals who make such disclosures. The Act recognises the importance of whistleblowers in maintaining transparency and accountability, and it seeks to create a safe environment for reporting misconduct without fear of retaliation.

Key Provisions of the Act

1. Definitions and Scope:
   • The Act defines a “protected disclosure” as any information about serious wrongdoing that an employee or worker believes on reasonable grounds to be true. Serious wrongdoing includes criminal offences, failures to comply with legal obligations, miscarriages of justice, endangerment of health or safety, environmental damage, and gross mismanagement.
   • The Act applies to a wide range of individuals, including employees, contractors, volunteers, and board members, ensuring comprehensive coverage across different types of employment and organisational structures.
2. Making a Protected Disclosure:
   • Individuals can make a protected disclosure to their employer or an appropriate authority at any time. The Act allows for disclosures to be made directly to an appropriate authority if the individual believes that the employer is involved in the wrongdoing, or if there is an urgent risk to health or safety.
   • The Act also outlines the steps that should be taken by the receiver of the disclosure, including assessing the information, taking appropriate action, and keeping the discloser informed about the progress and outcome of the investigation.
3. Protection Against Retaliation:
   • The Act provides robust protections against retaliation for individuals who make protected disclosures. This includes protection from dismissal, disciplinary action, harassment, discrimination, or any other form of adverse treatment.
   • Employers are prohibited from retaliating against whistleblowers, and individuals who believe they have been subjected to retaliation can seek remedies through the Employment Relations Authority or the Human Rights Commission.
4. Confidentiality and Anonymity:
   • The Act places a strong emphasis on maintaining the confidentiality of whistleblowers. Employers and appropriate authorities are required to keep the identity of the whistleblower confidential, unless the whistleblower consents to the disclosure of their identity or it is necessary for the investigation.
   • While the Act does not explicitly cover anonymous disclosures, it encourages individuals to come forward by ensuring that their identity will be protected to the fullest extent possible.
5. Role of the Ombudsman:
   • The Ombudsman plays a crucial role in the implementation of the Act. The Ombudsman is responsible for providing guidance and support to individuals making protected disclosures, as well as overseeing the handling of disclosures by public sector organisations.
   • The Ombudsman can also escalate disclosures to the relevant Minister or investigate disclosures independently if necessary.

Amendments and Enhancements

The 2022 Act introduced several key changes to strengthen the protections for whistleblowers and address issues identified in the previous legislation:

• Broadened Definition of Serious Wrongdoing: The definition of serious wrongdoing has been expanded to include the misuse of public funds and authority in the private sector, as well as behaviour that poses a serious risk to the health and safety of any individual.
• Direct Reporting to Appropriate Authorities: The Act allows individuals to report serious wrongdoing directly to an appropriate authority at any time, providing greater flexibility and ensuring that disclosures are handled by the most suitable entity.
• Clarified Internal Procedures: Public sector organisations are required to have clear internal procedures for handling protected disclosures and must publicise these procedures widely. This ensures that employees are aware of their rights and the mechanisms available for reporting wrongdoing.
• Specified Protections for Disclosers: The Act specifies the forms of adverse conduct that disclosers may face and provides clear guidance on the obligations of employers and appropriate authorities to protect whistleblowers.

Impact and Significance

The Protected Disclosures (Protection of Whistleblowers) Act 2022 has had a significant impact on promoting ethical conduct and accountability in New Zealand. By providing a legal framework for protected disclosures, the Act empowers individuals to report misconduct and contributes to the enhancement of good governance and the protection of public interest.

Challenges and Criticisms

Despite its strengths, the Act is not without its challenges and criticisms. Some of the key issues include:

• Awareness and Implementation: There is a need for greater awareness and understanding of the Act among employees and employers. Effective implementation of the Act’s provisions requires ongoing education and training.
• Protection Gaps: While the Act provides substantial protections, there are still gaps that need to be addressed. For instance, the Act does not explicitly cover anonymous disclosures, which can deter some individuals from coming forward.
• Retaliation and Reprisals: Despite the legal protections, whistleblowers may still face subtle forms of retaliation or ostracism in the workplace. Ensuring a supportive environment for whistleblowers remains a critical challenge.

Conclusion

The New Zealand Protected Disclosures (Protection of Whistleblowers) Act 2022 is a cornerstone of the country’s efforts to promote transparency, accountability, and ethical conduct in the workplace. By providing a legal framework for protected disclosures and safeguarding whistleblowers from retaliation, the Act plays a crucial role in the fight against corruption and misconduct. However, ongoing efforts are needed to enhance awareness, address protection gaps, and ensure that whistleblowers can report wrongdoing without fear. As New Zealand continues to evolve its legal and regulatory landscape, the Act remains a vital tool in fostering a culture of integrity and accountability.

How Safecall Can Help with New Zealand Protected Disclosures Act 2022 Compliance

Ensuring compliance with the New Zealand Protected Disclosures Act 2022 is essential for maintaining market integrity and protecting both investors and employees. An external whistleblowing solutions provider like Safecall can significantly aid organisations in meeting their PID obligations. Safecall offers anonymous reporting channels, enabling employees to report suspicious activities without fear of retaliation. This encourages more employees to come forward with information about potential market abuse, ensuring that issues are identified and addressed promptly.

As an external provider, Safecall conducts independent and impartial investigations into reported incidents. This helps maintain objectivity and ensures that all reports are handled fairly and thoroughly, which is crucial for maintaining trust in the whistleblowing process. Additionally, Safecall provides comprehensive reporting and monitoring tools that help organisations track and manage whistleblowing reports. These tools offer valuable insights into potential compliance issues and help organisations identify patterns of misconduct, enabling them to take proactive measures to prevent market abuse.

Safecall also offers training and awareness programs to educate employees about MAR and the importance of compliance. These programs help foster a culture of integrity and transparency within the organisation, ensuring that employees understand their responsibilities and the procedures for reporting suspicious activities. By partnering with Safecall, organisations can ensure they are compliant with legal and regulatory requirements related to whistleblowing.

Implementing an external whistleblowing solution like Safecall enhances corporate governance by promoting ethical behaviour and accountability, thereby improving overall organisational integrity and stakeholder trust.