The EU Whistleblower Directive is a set of new rules designed to provide better safeguards for individuals who expose wrongdoing related to EU laws. It applies to companies in all 27 EU Member States and has implications for businesses worldwide.
In this article, we will give you an overview of the EU Whistleblower Directive, and discuss the steps companies need to take to ensure compliance.
The EU Whistleblower Directive, introduced in September 2019, aims to enhance whistleblower protection across the EU. It expands the scope of whistleblowing by defining who can report, what can be reported, where to report, and why. This directive holds companies accountable for any retaliatory actions against whistleblowers, posing new challenges for businesses operating in the EU.
The directive applies to both public and private companies with:
It also covers local authorities serving over 10,000 people and financial services companies. Even companies based outside the EU but employing over 50 workers within the EU need to comply, except for the UK, which already has its own comprehensive whistleblower protection legislation.
To comply with the EU Whistleblower Directive, companies must meet certain obligations:
Each member state determines the penalties for non-compliance with the directive. Companies that fail to comply may face financial penalties, damage to their reputation, and legal consequences.
It is important for organizations to review their existing policies and practices to align with the directive and mitigate potential risks.
To ensure your company is fully prepared and aligned with the requirements of the EU Whistleblower Directive, take proactive steps today. Review your existing policies, implement robust internal mechanisms for reporting, educate your employees about their rights and options, and establish effective anti-retaliation measures.
