What is the content of the whistleblower policy?
The Whistleblower Policy This was already decided by the European Parliament in 2019, but it is now more relevant than ever. Since 16 December 2021, the German federal government has had to submit a draft law for the integration of the directive into German legislation.
The central content of the whistleblower policy is the creation of an internal company infrastructure for reporting legal violations. The violations can concern different areas such as these:
- Corruption
- Competition law matters
- Consumer protection
- Privacy policy
- Environmental and Animal Protection
- Product safety
Whistleblowers should be given the opportunity to report legal infringements and breaches of company internal policies anonymously.
Update: The Whistleblower Directive has come into force – now what?
Since 17 December 2021 Gilt sie Whistleblower Protection Directive in the EU. Other European countries like Sweden or Denmark have passed legislation in response to the Whistleblower Directive on time. And Germany? The initial draft law from early 2021 failed due to rejection by the Union. Since then, it has become clear from coalition negotiations following the federal election at the end of last year that a law to implement the Whistleblower Directive is a government objective, but also Early 2022 stands Germany still without such a law.
Germany's failure to meet the deadline for implementing the Whistleblower Directive has resulted in the EU Commission launching infringement proceedings. The EU Commission has already officially lodged a complaint in this regard. Further postponement of the Whistleblower Protection Act can potentially even lead to sanctions for Germany.
Despite Germany's delay in implementing the Whistleblower Directive, one thing is clear: Germany will not be able to avoid passing a law on whistleblower protection. It is therefore advisable for companies to familiarise themselves with the content of the Directive and the resulting requirements for implementation within the companies. We will explain what this is all about.
What does the Whistleblower Directive mean for German companies?
The law, in response to the EU's Whistleblower Directive, will oblige companies to install internal reporting channels. In other EU countries, such as Sweden or Denmark, such a law has already been passed. The Whistleblower Directive stipulates that Companies above a certain size (with 50 employees) Implement whistleblowing system must. Smaller companies with up to 249 employees are expected to be required to comply with an extended deadline for whistleblower protection.
Who does the Whistleblower Policy protect?
The main objective of the Whistleblower Directive is the Protection of so-called whistleblowers. This refers to the individuals who use whistleblowing systems and report incidents. The directive ensures that whistleblowers can expect no reprisals, by protecting their Identity protected remains. The persons to be protected by a company are not only employees but also others Stakeholder like suppliers, partners, or external supervisory bodies
What sanctions can be expected for non-compliance with the whistleblower directive?
The whistleblower policy provides a Sanctions for non-compliance for companies. The specific consequences are left to the discretion of the respective countries. However, the sanctions should by no means be underestimated. With regard to the legal implementation of the Whistleblower Directive in Poland, it is worth being well prepared for the legislation. The current Polish draft bill provides for a three-year prison sentence for company directors who fail to establish a whistleblower system.
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Whistleblowing systems as a consequence of the new EU directive
Whistleblowing systems are the digital answer to the Whistleblower Protection Act. Employees can report misconduct at any time. An examination of incidents by professionally trained legal personnel ensures data-protection-compliant documentation and adequate consequences.
This is how a whistleblower system:
- Observation of the incident
- Message in the system
- Review by independent experts
- Consequence of the breach
- Follow-up
Whistleblower Policy – An Expert's Assessment
All companies must adapt their compliance management!
„I firmly assume that all companies will have to adapt parts of their compliance management [...],“ says Dr. Thomas Altenbach In an interview with IT-Daily on the impact of the EU Whistleblower Directive on existing compliance management in companies.
The LegalTegrity-CEO answered exciting questions like these in an interview with IT Daily:
- Why should compliance play an increasingly important role, even in small and medium-sized enterprises?
- What do companies need to consider for optimal risk and compliance management?
- What is the impact of the EU Whistleblower Directive on German companies?
- Do companies need to change their compliance management with the introduction of the EU Whistleblower Directive?
A whistleblower system as a core element
The Conclusion of the compliance expert At the end of this process, a well-functioning, anonymised whistleblower system should be a core element of a company's compliance measures.„
How can companies prepare for a whistleblower directive law?
The Optimal preparation to the future Whistleblower Protection Actis a whistleblower system. LegalTegrity's whistleblower system ensures compliant handling of breaches within your company while protecting the identity of Whistleblowers. Arrange an appointment now Appointment for a Demo, in which we will introduce you to our system and are happy to answer your questions.
(The male form used refers to all persons, regardless of gender.)
