In the past year there have been 1356 applications made to employment tribunals under the Public Interest Disclosure Act from employees claiming to have been penalised for whistle-blowing and, according to commercial law firm EMC Picton Howell, this is set to increase due to the economic turmoil.
Jon Taylor, head of employment at EMW Picton Howell, said: "In the past two years we have seen the number of whistle-blowing claims almost triple."
The damages awarded by tribunals for whistle-blowing claims are uncapped and Taylor worries there is "no limit" on the compensation staff could receive.
He added: "The reputational, as well as the financial, costs of such a claim could be disastrous for companies."
This report comes just weeks after Marks & Spencer employee Tony Goode lost his job when he revealed company information about changing redundancy schemes at the retail firm to The Times newspaper.
Whistle-blowing sackings rise dramatically
The number of employees claiming to have been sacked or disciplined for whistle-blowing has jumped by 31% over the past year.
