Whistleblowing Laws play a crucial role in promoting transparency and accountability in organizations. Understanding the legal aspects surrounding whistleblowing is essential for businesses to ensure compliance and protect employees who report wrongdoing.
This article provides a comprehensive overview of international whistleblowing laws, with a specific focus on the EU Whistleblower Directive, and highlights best practices for businesses.
Whistleblowing serves as an important mechanism to expose fraud, corruption, and other unethical practices within organizations. By encouraging employees to report misconduct, businesses can address issues promptly, prevent financial losses, protect their reputation, and foster a culture of integrity. Whistleblowing also helps in detecting regulatory violations and ensuring compliance with laws and regulations.
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In the European Union, the new EU Whistleblower Directive has been introduced, mandating each member country to incorporate it into their national legal frameworks. See the EU whistle blow Directive Breakdown below 👇
Whistleblowing laws in the United States encompass a range of federal, state, and local statutes designed to encourage and protect individuals who expose illegal or unethical activities within organizations. Key features of these laws include confidential handling of disclosures, financial awards, and independent reporting channels. Some notable laws include:
Whistleblowing laws in Asia reflect a diverse and evolving legal landscape, shaped by cultural, regulatory, and economic factors. Here’s an overview of the current state of whistleblowing laws and practices in various Asian countries:
Overall, the Asian region shows a growing recognition of the importance of whistleblowing in corporate governance and compliance, with increasing efforts to provide legal protections and incentives for whistleblowers. However, cultural and hierarchical norms often present challenges, and there is still significant variation in the effectiveness and scope of whistleblower laws across different countries.
Directive (EU) 2019/1937 of the European Parliament and of the Council, on the protection of persons who report breaches of Union law, also known as the “Whistleblower Directive”, was adopted on October 23, 2019, and entered into force on December 16, 2019.
All public legal entities and private companies with more than 50 employees based in the European Union (and municipalities with more than 10,000 inhabitants) are required to comply with the obligation to establish an internal reporting channel.
Important date: By December 17, 2023, private sector legal entities with 50 to 249 employees, are required to establish and activate an internal reporting channel to receive reports
The directive sets minimum standards for the protection of whistleblowers across the European Union and requires all EU Member States to implement corresponding national legal frameworks 👇
🇦🇹 Austria: Implemented – Austria’s “HinweisgeberInnnenschutzgesetz” (HSchG) was approved in February 2023, transposing the EU Whistleblowing Directive. The law came into force on February 25, 2023, allowing a six-month transition period for entities with 250 or more employees to establish internal whistleblowing systems.
🇧🇪 Belgium: Implemented – Belgium’s Chamber of Representatives passed a bill in 2023 to protect whistleblowers, translating the EU Whistleblowing Directive into Belgian law. The law is set to come into force in 2023.
🇧🇬 Bulgaria: Implemented – Bulgaria approved its whistleblowing law in January 2023, aligning with the EU Whistleblowing Directive. The law, effective from May 4, 2023, includes provisions for employers in the private sector with 50 to 249 employees, applicable from December 17, 2023.
🇭🇷 Croatia: Implemented – Croatia adopted the “Croatian Whistleblower Protection Act” in late 2022, addressing loopholes and incorporating extended mechanisms to comply with the EU Whistleblowing Directive.
🇨🇾 Cyprus: Implemented – Cyprus transposed the EU Whistleblowing Directive on February 4, 2022, introducing new reporting provisions and protective measures for whistleblowers in the private and public sectors.
🇨🇿 Czech Republic: Implemented – The Czech Republic passed a new Whistleblower Act in June 2023, transposing the EU Whistleblowing Directive, effective from August 1, 2023.
🇩🇰 Denmark: Implemented – Denmark passed the Whistleblower Protection Act in June 2021, making it the first EU member state to implement the EU Whistleblowing Directive into national law.
🇪🇪 Estonia: In progress – Estonia’s transposition process is ongoing, with a protection bill passing the first reading in 2022. Delays and criticism have complicated the process.
🇫🇮 Finland: Implemented – Finland transposed the EU Whistleblowing Directive, with the new legislation effective from January 1, 2023. It enhances protection for whistleblowers and mandates internal reporting channels for eligible entities.
🇫🇷 France: Implemented – France passed a law in March 2022, amending the existing Sapin 2 law to align with the EU Whistleblowing Directive, covering entities with 50 or more employees.
🇩🇪 Germany: Implemented – Germany’s Whistleblower Protection Act came into force in July 2023 after initial rejection in February 2023. The act aims to protect whistleblowers and ensure transparency.
🇬🇷 Greece: Implemented – Greece’s draft whistleblower protection legislation, submitted in October 2022, was passed in November 2022 and is now in force, with different implementation dates for compliance measures.
🇭🇺 Hungary: Implemented – Hungary passed the Whistleblower Protection Act in May 2023, completing the transposition process.
🇮🇪 Ireland: Implemented – Ireland transposed the EU Whistleblowing Directive in July 2022, extending protection and introducing formal reporting channels, effective from January 1, 2023.
🇮🇹 Italy: Implemented – Italy approved a delegation law in March 2023, completing the transposition process for the Whistleblowing Directive.
🇱🇻 Latvia: Implemented – Latvia transposed the EU Whistleblowing Directive in January 2022, with new measures effective from February 4, 2022.
🇱🇹 Lithuania: Implemented – Lithuania amended existing legislation in February 2022, aligning with the EU Whistleblowing Directive.
🇱🇺 Luxembourg: Implemented – Luxembourg’s Whistleblower Protection Act, passed in May 2023, exceeds the minimum directive requirements, offering broad protection and a support point for whistleblowers.
🇲🇹 Malta: Implemented – Malta amended the Whistleblower Act in December 2021, enhancing protection for whistleblowers in compliance with the EU Whistleblowing Directive.
🇳🇱 The Netherlands Implemented – The Netherlands transposed the directive in January 2023, introducing updated whistleblowing procedures and the appointment of an independent reporting body.
🇵🇱 Poland: In progress – Poland is evaluating a new law, the draft Act on the Protection of Persons Who Report Breaches of Law, to meet the requirements of the EU Whistleblowing Directive.
🇵🇹 Portugal: Implemented – Portugal implemented the directive in December 2021, with new measures effective from June 18, 2022.
🇷🇴 Romania: Implemented – Romania adopted an improved version of its national whistleblowing law in December 2022, aligning with the EU Whistleblowing Directive.
🇸🇰 Slovakia: Implemented – Slovakia passed the Whistleblower Law in May 2023, enhancing existing measures to align with the EU Whistleblowing Directive.
🇸🇮 Slovenia: Implemented – Slovenia passed the Whistleblower Protection Act in January 2023, broadening protection to comply with the EU Whistleblowing Directive.
🇪🇸 Spain: Implemented – Spain approved new whistleblower protection legislation in February 2023, completing the transposition process.
🇸🇪 Sweden: Implemented – Sweden transposed the directive in September 2021, rectifying flaws in existing measures to guarantee anonymity and confidentiality.
This tool helps keep you compliant with a secure channel for submitting and managing whistleblower reports. Maintain an easy-to-use reporting form for employees and other stakeholders, and manage the whole process from an all-in-one dashboard.
Click here to learn more!🇨🇭Switzerland: Will not be implemented – no whistleblowing legislation in effect. The Swiss Code of Obligationshighlights employees’ duty of loyalty and confidentiality to their employer, which is interpreted as an obligation to report any misconduct internally first. However, Swiss law itself has not expressly provided for the establishment of internal reporting channels.
🇬🇧 United Kingdom: Will not be implemented – The UK, post-Brexit, is not obligated to transpose the EU Whistleblowing Directive. However, UK businesses operating in mainland Europe above a certain size are subject to the directive. The UK has its own national whistleblower protection legislation in the form of PIDA, criticized for its complexity and outdated nature.
🇺🇸 The Federal Trade Commission: Will not be implemented – The US adopted the whistleblower protection act (WPA) in 1989. The Act applies at the federal level and does not provide for the establishment of reporting channels in the fashion of Whistleblower Directive.
In general terms, any non-EU private legal entity having a presence (branch) in a Member State of the EU and employing at least 50 employees, may be subject to the Directive standards and relevant national legislation.
🇺🇳 The United Nations Convention Against Corruption (UNCAC) encourages member states to establish mechanisms to protect whistleblowers and provide legal safeguards.
🌐 The Organization for Economic Co-operation and Development (OECD) Guidelines recommend member countries to have whistleblower protection laws in place.
Whistleblowers can report a wide range of issues in several areas, including but not limited to:
👉 Protection of privacy and personal data
👉 Consumer protection
👉 Violations of company policies and procedures
👉 Financial misconduct
👉 Money laundering and terrorist financing
👉 Fraud
👉 Network and information system security
👉 Harassment or discrimination
👉 Safety concerns (product safety and compliance, food and feed safety, transport safety)
👉 Public health or animal health and welfare concerns
👉 Environmental issues
To navigate whistleblowing laws effectively, businesses should consider the following best practices:
Understanding the legal aspects of whistleblowing, including international laws and specific mandates like the EU Whistleblower Directive, is crucial for businesses.
By complying with these laws and implementing best practices, organizations can foster a culture of transparency, protect whistleblowers, and effectively address misconduct. This not only ensures compliance but also enhances corporate governance, reputation, and ethical standards.
