Navigating Whistle-blower and Employee Investigations in the UAE: A Guide for Modern Organisations

This article unpacks key components of the UAE’s whistle-blowing regimes and provides practical steps for companies looking to create robust, reliable reporting frameworks.

As organisations in the UAE continue to prioritise integrity, transparency, and regulatory compliance, developments in whistle-blowing frameworks underscore the importance of supporting employees who report misconduct. Handling whistle-blower and employee investigations effectively is critical to fostering a safe and compliant workplace.

The UAE’s Whistle-blowing Landscape

While there is no overarching federal whistle-blowing law in the UAE, various pieces of legislation safeguard those who report suspicious behaviour and criminal activity. For example, Article 323 of the UAE Penal Code (Federal Decree-Law No. 31 of 2021) mandates that individuals aware of a crime must report it to authorities, making failure to do so a criminal offence.

Under Federal Decree-Law No. 32 of 2021 on Commercial Companies, auditors must report corporate violations within 10 days of discovery.

Dubai Law No. 4 of 2016 on the Dubai Economic Security Centre mandates protection for whistle-blowers, ensuring their identity and residence remain confidential and safeguarding them from workplace discrimination or mistreatment.

These laws reflect the UAE’s dedication to corporate integrity, requiring businesses to support transparency and protect those who speak up.

The UAE Central Bank has also implemented whistle-blowing guidelines to encourage accountability and transparency in the financial sector. Whistle-blowers can report issues related to fraud, conflicts of interest, and breaches of the code of conduct.

The Central Bank offers an encrypted online portal for anonymous reporting and assures whistle-blowers that they are protected from retaliation, promoting a secure environment for reporting misconduct.

DIFC’s Whistle-blowing Regime

In April 2022, the DIFC implemented the DFSA Whistleblowing Regime to provide a comprehensive framework for whistle-blowing within DFSA-regulated entities operating in or from the DIFC. This regime encourages employees to make protected disclosures related to suspected regulatory breaches, money laundering, financial crimes, and other serious misconduct. These disclosures can be directed to specified individuals within the organisation, the DFSA, auditors, or other law enforcement agencies, ensuring that employees have multiple channels for safe reporting.

The regime also introduces essential safeguards for whistle-blowers, protecting them from civil or contractual liability and prohibiting dismissal or any form of penalisation by their employer for making a qualifying disclosure in good faith.

Regulated entities are also required to maintain comprehensive records of each reported concern and its resolution, which the DFSA may review to verify compliance. This structured record-keeping obligation underscores the DIFC’s commitment to a culture of transparency and accountability, ensuring that reported issues are tracked and addressed systematically.

ADGM’s New Whistle-blower Protection Regulations

The ADGM has introduced two landmark regulations: the Employment Regulations (Amendment No. 1) 2024 and the Whistleblower Protection Regulations 2024, which were effective from July 2024.

These regulations represent a significant advancement in protecting employees who report violations or financial crimes, aligning the ADGM’s standards with global best practices in whistle-blower protection.

The Whistleblower Protection Regulations allow for protected disclosures covering suspected misconduct, such as fraud, money laundering, or other financial crimes. Employees can report such concerns internally or to relevant authorities without fear of retaliation.

The Regulations provide robust protections against retaliation, or any other punitive actions against employees who make disclosures in good faith.

If an employee does experience retaliation, they can seek recourse through the ADGM courts, with potential compensation for harms incurred. These new protections emphasise the ADGM’s commitment to creating a safe and supportive reporting environment, establishing a strong framework that prioritises transparency and accountability for organisations and employees alike.

Best Practices for Handling Whistle-blower and Employee Investigations

Effectively managing whistle-blower and employee investigations is a multi-faceted process. Here are some best practices to guide UAE businesses:

1. Develop Clear Policies: Ensure your whistle-blowing policies are accessible, outlining what constitutes reportable conduct and the steps for reporting. Providing a broad definition of protected disclosures helps cover a wide range of issues, from regulatory breaches to unethical behaviour.
2. Implement Confidential Reporting Channels: Confidentiality is essential. Provide secure reporting channels that support anonymous submissions, enabling employees to report concerns without fear.
3. Conduct Regular Training: Regular training on rights and responsibilities under whistle-blowing frameworks helps employees understand the protections available and the importance of correctly reporting misconduct.
4. Support from Leadership: Encourage a “speak-up” culture, with senior management actively endorsing whistle-blowing policies, making employees feel that reporting is respected and valued at all levels.
5. Review Policies Regularly: As regulatory landscapes evolve, ensure policies are periodically reviewed and updated to address any identified gaps and stay aligned with best practices.

Implementing a robust whistle-blowing framework is more than a compliance exercise - it demonstrates an organisation’s commitment to ethical practices and accountability.

By fostering a culture of transparency, organisations are better equipped to manage risk, maintain stakeholder trust, and create a positive, ethical work environment where employees feel empowered to report concerns without fear of retaliation.

The UAE’s whistle-blowing frameworks offer both opportunities and challenges for organisations aiming to stay compliant and uphold high ethical standards.

If your organisation needs assistance in developing an effective whistle-blowing framework or handling employee investigations, Clyde & Co’s expert team is here to help. Contact Rebecca Kelly or Damian Wright for tailored advice to suit your business’s specific needs.