Whistleblower

How BC law treats it

BC has no general whistleblower protection statute for private businesses. The Public Interest Disclosure Act, SBC 2018, c 22 applies to employees of ministries and designated public bodies. It lets them report serious wrongdoing internally or to the Ombudsperson and protects them from reprisal. It does not cover private sector employers. Private sector protection is piecemeal. Under the Criminal Code, RSC 1985, c C-46, s. 425.1, an employer must not threaten, discipline, demote or dismiss an employee to stop them from reporting, or to retaliate for reporting, an offence to law enforcement. The federal Competition Act, RSC 1985, c C-34 lets people report suspected offences to the Commissioner of Competition, who must keep their identity confidential if an assurance was given (s. 66.1), and bars employers from retaliating against employees, including contractors, who report in good faith (s. 66.2). The Workers Compensation Act, RSBC 2019, c 1 prohibits discriminatory action against workers who raise health and safety concerns. Common law also matters. An employee who is dismissed for raising a legitimate concern may claim wrongful dismissal damages, and a dismissal carried out in bad faith can increase the award. At the same time, employees owe a duty of confidentiality, so going to the media without first using available channels can carry risk for the employee.

What it means for your business

Even without a general statute, retaliating against an employee who reports wrongdoing can expose a BC business and its managers to criminal liability, regulatory action and wrongful dismissal claims. A written whistleblower policy that sets out reporting channels, confidentiality, investigation steps and a no-retaliation rule helps catch problems early, supports the board's oversight duties, and is often expected by investors, lenders and acquirers in due diligence. Example: An accounts clerk at a Richmond distributor reports suspected invoice fraud by a manager through the company's confidential reporting line. The company investigates, refers the matter to police, and documents that the clerk faced no change in duties or pay.

Risks and common mistakes

Assuming BC has a Whistleblower Protection Act covering private employers. Assuming the Public Interest Disclosure Act protects private sector employees. Disciplining or dismissing an employee soon after they report an offence to police. Having no written policy, so employees go straight to regulators or the media. Failing to keep a whistleblower's identity confidential during an internal investigation.