Employer Responsibilities: How to Effectively Implement a Whistleblower Protection Procedure?

As of September 25, 2024, any employer with more than 50 employees will be required to implement whistleblower protection regulations. The new regulations aim to ensure a safe work environment where employees can report wrongdoings without fear of reprisals. The introduction of these regulations is a result of the implementation of the EU Directive on the protection of whistleblowers.

Who is a whistleblower?

A whistleblower can be any person who has a connection with a company where violations of the law have occurred. Whistleblowers can include employees, former employees, job candidates, persons providing work under civil law contracts, volunteers, interns, business partners, as well as entrepreneurs and members of bodies of legal entities. Each of them has the opportunity to file a complaint by providing their data or remaining anonymous. The whistleblower is protected from the moment of reporting irregularities, and the employer cannot retaliate against him.

A whistleblower reports abuses, irregularities or illegal activities in the organization where he or she works. These may include situations involving corruption, violations of regulations, threats to public safety or other unethical activities. Whistleblowers play a key role in protecting the public interest by helping to detect and prevent activities that may harm the public, employees, or the environment.

Requirements for the internal reporting procedure

Employers, employing at least 50 people as of July 1, 2024 ( based on employment, commission, work, B2B – contract) must develop and implement an internal notification procedure, which specifies how to report violations of the law and follow-up. This procedure should be consulted with the company’s trade union organization or employee representatives, if such an organization does not exist at the company.

The internal reporting procedure must ensure the anonymity of whistleblowers and specify how reports will be received and handled. The company should designate an appropriate person or organizational unit responsible for receiving reports and following up on them. The procedure goes into effect 14 days after employees are informed about it in the manner adopted in the company.

‘The introduction of a whistleblower protection procedure is an important step in building trust between employers and employees. As someone who deals with legalisation issues on a daily basis, I can see the many benefits that this provision brings. First and foremost, it provides employees with greater security and confidence that they can report wrongdoing without fear of reprisals. Protecting whistleblowers is a key element in the drive for transparency and fairness in organisations, which will certainly improve the quality of management and relationships in companies. From an employer’s perspective, the implementation of proper procedures is not only a legal requirement, but also a tool that will allow them to react faster and more effectively to problems before they escalate into more serious violations’ – comments Tetiana Hrynchyshyn, administration/legalisation specialist of Smart Solutions HR.

Channels for reporting violations

A whistleblower can report violations both internally and externally. Internal reporting is directed to the relevant structures within the company, while external reporting can be directed to the Ombudsman or the relevant public authority. It is important that the internal reporting procedure is transparent and secure enough that employees feel comfortable using it, rather than directing their reports externally.

Protection of whistleblowers

A whistleblower who reports violations in good faith is afforded special protection. The employer may not take actions that could harm the whistleblower, such as dismissal, reduction in pay, omission from promotion or other forms of discrimination. If these laws are violated, the employer may be required to pay compensation or damages.

Whistleblowers often face reprisals such as dismissal, demotion or even harassment. In order to effectively protect whistleblowers, it is necessary to introduce appropriate laws and procedures to ensure their anonymity and safety. In Poland, as in other European Union countries, these issues are regulated by whistleblower protection laws, which oblige employers to create whistleblowing mechanisms and provide protection for whistleblowers.

Sanctions for failure to implement procedures

Employers who fail to implement the required regulations could face serious legal and financial consequences. Sanctions under the law include penalties for preventing reports from being made, retaliating against a whistleblower, and failing to follow the required internal reporting procedure. Employers should therefore take steps to comply with the new legal requirements as soon as possible.

How to implement a whistleblower protection procedure?

Implementing procedures to protect whistleblowers in a company starts with developing a clear and understandable reporting policy. It should include information on available reporting channels, procedures for processing reports, and policies to protect against retaliation. Employees must be regularly briefed and trained on the use of these procedures.

It is also critical to ensure that reports are treated confidentially and that whistleblowers are protected from any form of retaliation. Companies should monitor the effectiveness of these procedures to ensure they are working properly.

Implementing a whistleblower protection procedure requires several key steps:

1. Analyze the company’s needs: Identify areas where violations may occur and assess the risks.
2. Development of documentation: Prepare internal reporting regulations and other documents required by law.
3. Determining notification channels: Selecting appropriate communication channels to ensure anonymity and security for reporters.
4. Training of employees: Conducting training so that all employees are aware of their rights and responsibilities regarding the notification procedure.
5. Ongoing legal maintenance: Regularly audit and update procedures in accordance with laws and company needs.

Summary

As of September 25, 2024, employers with more than 50 employees will have to implement whistleblower protection procedures. This is not only a legal obligation, but also a way to build an organizational culture based on trust and transparency. Implementing an internal reporting procedure not only protects whistleblowers, but also helps companies quickly identify and eliminate potential threats, which is crucial for the stability and growth of a company.