Broadly speaking, a whistleblower is an individual who reports illegal or unethical actions by individuals or organizations. Such actions could include financial fraud, an abuse of power, or incidents that pose a threat to public health and safety.

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Whistleblower Protection

Whistleblower Protection

While governments, regulators and organizations provide incentives for whistleblowers to come forward regarding perceived acts of misconduct, the ability to protect and attain immunity for the whistleblower is not a straightforward process. While few Canadian laws pertain directly to whistleblowing, there is one provision under the Canadian Criminal Code, Public Servants Disclosure Protection Act (PSDPA), the Public Service of Ontario Act, 2006 as well as the Securities Act. Section 425.1 of the Criminal Code, for example, states that employers may not take disciplinary action against, demote or terminate an employee in order to deter him or her from reporting information regarding an offence he or she believes has or is being committed by his or her employer to the relevant law enforcement authorities.  In short, this provision protects the whistleblower against any threat from their employer which could lead to negative repercussions or consequences due to sensitive information that is divulged. This threat could possibly deter them from contacting law enforcement. Punishment for employers who make such threats or reprisals can include up to five years imprisonment and stiff monetary penalties.

Additionally, Ontario’s Securities Act established a new whistleblower program in July of 2016. This consisted of amendments to the Securities Act that give extra protection to individuals who report a potential violation of Ontario securities law.

Employer’s Responsibilities

Employer’s Responsibilities

Workers are often present when wrongdoing occurs. Therefore, it is an employer’s responsibility to provide an open, transparent and safe working environment that allows employees to feel comfortable when speaking up against wrongdoing. Although the law does not require organizations to have whistleblower policies in place, the presence of clear and concise policies and procedures for whistleblowers within an organization is of paramount importance. A whistleblower policy demonstrates a professional corporate culture where employees can utilize its well-defined steps and measures when they feel the need to, ensuring that their concerns will be rightfully addressed.

Mr. James Smith was a policy advisor working for the Health Care Authority of Canada (henceforth referred to as HCAC), tasked with heading the group that oversees the dispersal of costly medicine. Mr. Smith had worked at HCAC for 5 years and had gained a reputation for being tough but fair, always prioritizing the interests of Canadian citizens.

Last year, HCAC undertook major structural changes within their upper level management team. As a result, the corporate culture became drastically different. Having spurned overtures from other pharmaceutical companies and hospitals in the past, the new management team now accepted trips, gifts, rewards and other favours from them with the hope of receiving additional financing from the HCAC.

James Smith was not comfortable with the extensive and overt lobbying to the HCAC that he witnessed. He attempted to address his concerns directly to the new management team regarding these lobbying practices, biased competition and immoral trading of favours (quid pro quo) that he had witnessed.

James Smith’s attempt to stop these perceived wrongdoings directly with the new management team turned into a futile endeavour to rectify the situation. It was met with overwhelming anger and character attacks, with a clear objective of dismissal. With his efforts of an open dialogue with the management team in vain, James decided to draft a formal whistleblower complaint in the form of a formal report which itemized the serious improprieties that he had been privy to.

James Smith submitted his report to the Canadian government, as well as the national news media outlets. As a result, the entire new management team were relieved of their duties. A criminal investigation commenced and is ongoing.

Relevant Evidence:

  • Internal reports
  • Financial documents
  • Sales documents
  • Electronic evidence (email, text messages, etc.)

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