WHISTLEBLOWER PROVISIONS

R&C: To what extent has there been an increase in employees blowing the whistle in recent years? How significant is this trend in combatting corporate wrongdoing?

Lyras: There has been a noticeable increase in whistleblowing in Australia, particularly in the last few years following strengthened protections under the Corporations Act from mid-2019. This trend has helped uncover more corporate wrongdoing, although some reports can be misconceived or opportunistic, highlighting the need for thorough assessment and investigation. The Australian Securities and Investments Commission’s (ASIC’s) enforcement activities have been limited, with only one prosecution commenced since the reforms against Terracom Limited, which settled for an agreed $7.5m penalty and $1m in ASIC’s costs. Notably, ASIC has seen a decrease in disclosures since 2021-22. Overall, while legislative reform has driven a rise in whistleblowing, to combat cultural perceptions of whistleblowers ‘dobbing on their mates’, further institutional support is needed to make it a truly effective tool against corporate misconduct.

Humphrey: Since the adoption of the European Union’s (EU’s) Whistleblower Directive in 2019 and its implementation across the EU, companies are seeing a slow but steady increase in employees ‘blowing the whistle’ via internal corporate reporting channels and to the external reporting channels at dedicated government agencies. Before the introduction of the EU Whistleblowing Directive, Germany, as well as most other EU member states, did not have comprehensive whistleblowing laws. Only companies in certain regulated sectors, such as the insurance and finance sector, were required to operate internal corporate reporting channels. In contrast to the US and the UK, where whistleblowing programmes have a longer tradition, whistleblowing was – and to a certain extent is – often seen as ‘an act of treason’ in the EU. While the EU whistleblowing directive certainly marks a turning point and may slowly lead to a general cultural shift when it comes to whistleblowing, the general increase in whistleblowing will certainly have an impact on how corporate wrongdoing is being detected.

Oct-Dec 2025 Issue

Clayton Utz

Ernst & Young LLP

Gibson Dunn

Hogan Lovells

Mayer Brown International LLP

Norton Rose Fulbright