Experts are warning about "systemic failure" in internal reporting processes as a new report revealed widespread retaliation fears among employees who witness misconduct in the workplace.

The research, released by law firm Outten & Golden LLP, revealed that 22% of respondents have witnessed or are aware of illegal or unethical conduct at work.

However, 33% of them remain silent amid fear of negative consequences from reporting these issues.

Tammy Marzigliano, partner and co-chair of the firm's whistleblower and retaliation practice, warned that the situation is not just a red flag, but a "systemic failure."

"If employees believe that speaking up at work comes with a personal cost, employers should be worried," Marzigliano said in a statement.

"Companies that fail to build cultures of trust and accountability are not only risking legal exposure – they are undermining their own long-term success."

The findings come as workplace misconduct soared to a nearly seven-year high in 2025, with more complex cases rising, according to a separate report from HR Acuity.

Similarly, HR Acuity's data noted that there are still gaps in reporting despite more employees speaking up, with 22% of its respondents saying they remained silent when they experienced or witnessed harassment.

Fear of retaliation also emerged as one of the top factors behind unreported incidents of misconduct in the workplace, based on the findings.

Government's reporting channels

In the US, the government has a whistleblower programme that aims to offer critical protection to employees who want to report misconduct at work.

The problem, however, is the lack of awareness among employees about the whistleblower programme, with more than four in 10 saying they did not know that such a scheme existed.

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