Case Study: Employer Vicariously Liable for Whistleblowing-Related Detriment of Dismissal

On 15 October 2025, the Court of Appeal handed down judgement in the linked appeals of Rice v Wicked Vision Ltd and Barton Turns Developments Ltd v Treadwell. The judgement revisited the scope of whistleblowing detriment claims under the Employment Rights Act 1996 (ERA) and considered the implications of a previous Court of Appeal decision in Osipov v International Petroleum.

The decision clarifies that employees can bring parallel dismissal-related claims under statutory provisions relating to both detriment and dismissal.

Why is this Judgment Important?

This ruling affects how whistleblowing claims are pleaded and could increase employer exposure. The ability to bring two claims of automatically unfair dismissal and detriment, under different statutory provisions, means employers face broader liability and potentially higher compensation awards.

Legal Issues and Background

The legal issues considered during the case was whether employees can bring claims for dismissal-related detriment under section 47B ERA, or whether such claims are confined to section 103A ERA, which deals with automatically unfair dismissal for employees making a protected disclosure.

It was important to clarify this issue as the two routes offer different remedies and criteria for proving the case. Under section 47B the burden of proof automatically shifts to the employer, meaning that the employee does not first have to prove their claims or allegations. Also, the employee can claim for injury to feelings as part of their compensation,  whereas under section 103A, there is no recovery for injury to feelings.

In 2013, section 47B was amended to allow employees and workers to bring claims for whistleblowing detriment against co-workers. However, section 47B(2) confirms the section does not apply where the worker is an employee and the detriment amounts to a dismissal.

Osipov v International Petroleum: The Precedent Case

In the case of Osipov v International Petroleum, the Court of Appeal held that employees could bring claims against co-workers for detriments amounting to dismissal and that employers could be held vicariously liable.

The Court’s reasoning behind this judgement was that excluding these claims would undermine Parliament’s intention to protect whistleblowers.

In turn, this interpretation allowed employees to pursue parallel claims under both section 47B and section 103A, even where the statutory wording appears to exclude dismissal.

Rice v Wicked Vision Ltd

Rice was employed as the Head of UK Sales by Wicked Vision Ltd, his employment began in  December 2017 and he was made redundant in February 2021. However, Rice alleged the reality of his dismissal was due to him making a protected disclosure. Rice made a claim for automatic unfair dismissal under section 103A, however he later added a further claim under section 47B arguing his dismissal by the company owner counted as a detriment caused by a co-worker and the Company would therefore be vicariously liable.

During proceedings, the Employment Appeal Tribunal (EAT) suggested that section 47B(2) excludes claims against employers for dismissal-related detriment, as section 103A already covers dismissal.

Court of Appeal

The Court of Appeal agreed with the EAT’s interpretation that under the statute wording of section 47B, dismissal should be excluded from detriment claims. However, they considered themselves bound by the earlier decision in Osipov. The two employees were able to argue that their respective employers were also vicariously liable for the acts of co-workers who had subjected them to a detriment by dismissing them.

As the Court of Appeal was bound by the decision made in Osipov, employees can still bring dismissal-related claims under both sections 47B and 103A.

Practical Implications for Employers and HR

The conflicting interpretation between the statute and the Court of Appeal judgments creates uncertainty for employers. However, for now the position remains as in Osipov.  Claimants can continue to bring dismissal-related claims under both sections 47B and 103A in dismissal-related whistleblowing cases.

This means that employers could potentially face higher awards for compensation in whistleblowing dismissal cases. Until this matter is resolved by the Supreme Court, employers and employees should proceed with caution.

In the meantime, employers would be wise to:

• Review Policies: Update whistleblowing policies to clarify reporting routes, protections from retaliation
• Train Managers: The ability of front-line managers to understand what constitutes a protected disclosure and how to avoid inadvertent detriment has been made all the more vital.
• Record-Keeping: Maintain comprehensive logs of whistleblowing disclosures and any decision-making around them.

For advice on implementing best practice for whistleblowing, speak with an expert today by getting in touch.