Find out when whistleblowing becomes abuse and can cost you your job.
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Debora Teruggia
Whistleblowing is a vital tool in combating misconduct and abuse in the workplace. But what happens when it is used improperly? Recent case law has clarified that employees acting in good faith are fully protected. However, those who misuse the reporting mechanism for personal gain or to harm colleagues or supervisors may face disciplinary measures, including the termination. This article examines key rulings by the Italian Supreme Court (Corte di Cassazione), the limits of the protection provided under Article 54-bis of Italian Legislative Decree No. 165/2001, and the rules governing appropriate whistleblowing practices in both public and private sectors. It also offers guidance on how to avoid mistakes and safeguard employee rights.
In recent years, case law has clarified the scope of whistleblower protection, defining both its conditions of application and its operational limits. We have previously addressed this subject in our article “How whistleblowers reporting misconduct, corruption, or abuse are protected: whistleblowing regulations” which offers a comprehensive overview of the relevant legal framework.
Although the cases discussed concern public sector employment and were decided under prior legislation, the principles set forth in the decisions remain valid under the current law and provide valuable interpretive guidance.
For example, Decision No. 1880/2025 reaffirmed a key principle: the “good-faith employee” cannot be sanctioned, dismissed, or discriminated against for reporting misconduct, even if such misconduct does not amount to a criminal offense.
The Italian Supreme Court stated: “The legal framework serves a dual purpose: on the one hand, to establish a distinct employment law status for individuals who report unlawful conduct; on the other hand, to encourage the internal reporting of misconduct and to promote more effective measures against corruption. A good-faith employee may not be sanctioned, dismissed, or subjected to discriminatory measures, direct or indirect, that affect working conditions, based on a report concerning unlawful conduct, even if such conduct does not constitute a criminal offense. The whistleblowing mechanism may not be used for purposes of personal gain or to raise grievances concerning the employment relationship with supervisors.”
The case involved a public sector employee who contested a disciplinary suspension imposed after he filed two complaints with the Public Prosecutor’s Office. Upon investigation, the allegations proved to be unfounded and aimed solely at damaging a supervisor’s reputation.
Therefore, whistleblower protection is not absolute: if a report is made for personal motives or due to conflict with a superior, Article 54-bis of Italian Legislative Decree No. 165/2001 does not apply.
This position is consistent with a previous decision, No. 17715/2024, concerning a similar situation. An employee had reported alleged irregularities in the management of public funds but failed to follow the established procedures for whistleblowing. In effect, the report amounted to defamatory conduct against a colleague, thereby excluding the whistleblower protections under the law.
As a result, the Italian Supreme Court clarified that:
These principles are further supported by Decision No. 9148/2023, upheld by administrative case law (Council of State No. 7002/2023 and Lazio Regional Administrative Court No. 236/2023), which highlighted the risks of whistleblowing abuse. For further analysis, see the article “Breach of exclusivity in public employment and whistleblowing: the verdict of the Italian Court [Ord. 9148/2023].”
When there is concrete evidence of improper use, the employer is entitled to impose disciplinary sanctions, including, in the most serious cases, the dismissal.
Implementing an effective (and compliant) reporting system is entirely feasible. Recent legal developments – particularly Legislative Decree No. 24/2023, which transposes EU Directive 2019/1937 – have strengthened whistleblower protections while recognizing that there is no one-size-fits-all model for all business environments.
In the public sector, transparency and accountability standards are especially stringent, serving to protect the public interest. Large private companies, due to their complex organizational structures, require structured and diversified reporting channels to manage disclosures effectively. Small and medium-sized enterprises (SMEs), on the other hand, may adopt more flexible solutions, while still meeting high ethical standards.
This differentiated approach allows companies to harmonize whistleblower protections with their specific operational needs, avoiding rigid requirements that could undermine the effectiveness of the system.
A key factor in the effectiveness of whistleblowing is the ongoing training of employees. The legislation requires that workers be properly informed of the internal procedures for reporting misconduct.
Understanding the available channels, reporting procedures, timelines, and applicable protections, such as anonymity and safeguards against retaliation, is essential to ensuring proper use of the whistleblowing system.
Proper training also helps prevent mistakes, inappropriate disclosures, or misuse, which could compromise the credibility of the entire system.
Ultimately, whistleblowing is a fundamental component of corporate compliance, aimed at integrating risk management systems that foster transparency, ethics, and accountability in line with the requirements of Italian Legislative Decree No. 231/2001. Both employees and employers play a critical role: the former must be aware of their rights and the legal protections available to them, while the latter must implement safe and transparent reporting mechanisms that comply with legal requirements and shield employees from retaliation.
Debora Teruggia
