A WHISTLEBLOWER who alerted his bosses in Vodafone to a €3 million fraud and claimed he was then not given support by management, has had a compensation award cut by the Labour Court.
The man, who was not named, was awarded €14,500 by a Rights Commissioner in March on the basis of the “personal difficulties and perceived risks associated with bringing forward his allegations”.
The commissioner’s award was appealed by Vodafone and in a finding that has just become available, the court said a €12,000 award was more appropriate in view of the stress and anxiety he suffered.
The Labour Court outlined that it was satisfied the circumstances that gave rise to the man’s claim are exceptional in many important respects.
“The claimant found himself in a position in which he was faced with suspicions that a senior member of the company management, to whom he reported, was perpetrating a fraud upon the company.”
At the time the court said there were no supports or guidelines available to assist him in dealing with the situation in which he was placed.
While the claimant acted responsibly and reported his suspicions, the absence of appropriate supports and procedures caused him to suffer “significant anxiety and distress resulting in him requiring a prolonged period of sick leave”.
The Impact trade union told the court their member had “agonised over the situation” for many months.
“It would have been detrimental to his career to make false allegations against a senior member of management,” the union claimed in court.
The union said Vodafone’s improvement in the man’s bonus earnings was “marginal by comparison to the estimated savings of over €3 million” to the company.
The court said Vodafone’s position was that the claimant did report the fraud but could have done so a lot sooner and saved the company from the significant losses it incurred.
The company said it had made every effort to fulfil its duty of care to the man.
Vodafone said the man was employed in the company’s fraud detection area.
By reporting the fraud, he was “merely doing the job assigned to him”, company argued.
Therefore, Vodafone said, it was inappropriate that he be compensated for carrying out his contracted duties.
It said the enhanced bonus under the company’s performance management system was “adequate” and in line with Vodafone’s procedures.