After 22 years, the New Zealand protected disclosures regime is getting a much needed refresh.
On 1 July 2022, the Protected Disclosures Act 2000 (the existing Act) will be repealed and replaced by the Protected Disclosures (Protection of Whistleblowers) Act (the Act).
The Act retains the general disclosure framework from the existing Act - i.e. for a disclosure to be protected it must meet the definition of “serious wrongdoing” and be made in good faith via prescribed reporting channels. However, it also introduces some key changes that organisations should be aware of and carefully consider in relation to the impact on their business.
Key changes - six areas of significant note are:
Definition of “serious wrongdoing” extended - The definition of “serious wrongdoing” now covers “serious risk to the health and safety of any individual” which could now include instances of bullying and harassment, not previously covered by the existing Act.
Reporting direct to an appropriate authority - Reports may be directly made to an appropriate authority at any time. This removes the “urgency” or “exceptional circumstances” threshold from the existing Act.
Dealing with disclosures - Organisations should acknowledge receipt of disclosures, consider whether investigation is warranted, deal with the matter, and inform the discloser of what is being done within a 20 working-day timeframe.
Updating the discloser where no action is taken - If an organisation decides to take no action in response to a protected disclosure, it must inform the discloser of that decision and provide reasons.
Discloser protections - Protections are clarified to include confidentiality and no employer retaliation, unfavourable treatment and victimisation as well as immunity from civil, criminal, and disciplinary proceedings.
Privacy Act implications - The release of any information that may identify the discloser represents an interference with the privacy of the individual under Part 5 of the Privacy Act 2020.
What this means for New Zealand organisations
The Act will apply from 1 July 2022 so you should make sure to promptly familiarise yourself and understand the implications of the reform. In particular, you should carefully consider whether your organisation’s existing policies reflect the new requirements or an update is required, and whether your procedures and practices for responding to reports remain appropriate.
An effective whistleblower or ethical reporting hotline is a critical component for preventing fraud and corruption, so this is a good time for organisations to reinforce their values and refresh your employees’ awareness of protected disclosures and whistleblower processes. This could be achieved via internal communications sent out by leadership and/or training delivered to employees using your organisation’s usual methods of delivery. Effective training is based around real-life scenarios and case studies to bring the subject to life and equip staff with knowledge and understanding about your organisation’s expectations around integrity, relevant policies, and what they can expect if they make a disclosure.
If you require assistance, please let us know. We can support organisations with:
Reviewing and updating whistleblower/ protected disclosure policies
Implementing whistleblower/ protected disclosure policies, including setting up disclosure mechanisms
Running your whistleblower service
Contact us
