Retaliation Against Whistleblowers: The Hidden Risk Companies Can’t Afford
When employees speak up about wrongdoing, retaliation remains one of the greatest barriers to ethical reporting. Yet in South Africa, retaliating against a whistleblower is not only unethical but also unlawful. Under the Protected Disclosures Act (PDA), retaliation is classified as an “occupational detriment,” and employers are expressly prohibited from subjecting employees to adverse consequences for making protected disclosures in good faith.
Occupational detriment can include:
- Termination of employment
- Demotion or denial of promotion
- Harassment, intimidation, or victimisation
- Negative performance reviews or adverse references
- Disciplinary action used as retaliation
- Blacklisting or damage to future employment prospects
Importantly, recent Labour Court rulings have reinforced that disciplinary action itself may constitute unlawful retaliation when it is motivated primarily by an employee’s whistleblowing rather than legitimate misconduct.
In the landmark case of Kunene v Akani Egoli (Pty) Ltd t/a Gold Reef City (2026), the Labour Court found that disciplinary charges brought against an employee following his disclosure of recruitment irregularities constituted an act of retaliation. The court confirmed that:
- The employee had made a protected disclosure
- He suffered occupational detriment
- The disclosure was the dominant reason for the disciplinary action
As a result, the employer was ordered to pay eight months’ compensation, along with legal costs.
Employees who experience retaliation may seek legal recourse through:
For employers, retaliation carries serious consequences:
- Substantial financial penalties
- Compensation awards
- Legal expenses
- Reputational damage
- Loss of workforce trust
- Reduced internal reporting of fraud, corruption, or compliance breaches
Beyond the legal risks, retaliation fosters a culture of fear and silence. When employees believe that speaking up will jeopardise their careers, misconduct is more likely to remain concealed, allowing unethical practices to escalate unchecked.
Forward-thinking organisations recognise that whistleblower protection is a governance imperative. Best practice includes:
- Anonymous and secure reporting channels
- Clear anti-retaliation policies
- Independent investigations into disclosures
- Management training on lawful whistleblower handling
- Consistent enforcement of ethical recruitment and disciplinary standards
The message is clear: protecting whistleblowers protects the organisation.
Businesses that punish those who report misconduct do more than violate the law, they undermine accountability, weaken governance, and expose themselves to greater operational, legal, and reputational risk. In contrast, organisations that safeguard whistleblowers build stronger cultures of integrity, transparency, and long-term resilience.
Written by Pelonolo Seapi
Disclaimer: The content in this article is for information purposes only and does not constitute legal advice. Always consult an employment law attorney to obtain advice with respect to any aspect of this legislation.
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