More legal protection for whistleblowers
Lawmakers are now recognising the value of whistleblowing channels. In December 2019, the Directive on the protection of persons who report breaches of Union law (“Whistleblowing Directive”) entered into force. This requires companies with more than 50 employees to implement internal compliance reporting channels and countries to provide protection for certain whistleblowers. EU countries have until 2021 to transpose the Directive into national law.
The introduction of whistleblowing systems presents an opportunity for all businesses to keep their ears to the ground and identify risk. If implemented in the right way, they can help to build a culture of openness and honesty, minimise risk and help the company to avoid costly financial penalties and reputational damage.