What you should know about the whistleblowing regulation
What is the EU Whistleblowing Directive all about?
The aim of the EU Whistleblowing Directive is to protect individuals who detect or suspect violations in sectors where misconduct could cause significant harm to the public interest. The goal is to ensure that reporting such violations is as safe as possible for the whistleblower.
Which organizations are covered by whistleblowing regulations?
The whistleblower protection regulation applies to both public entities and private companies with at least 50 employees.
Additionally, the regulation covers specific regulated industries, regardless of the number of employees, such as those subject to the Money Laundering Act. These industries include banking and investment, virtual currency, real estate brokerage, debt collection, accounting, and auditing. It is also important to note that businesses engaged in the sale or brokering of goods where they receive cash payments of 10,000 euro or more – either in a single transaction or in linked transactions – must also have a reporting channel. This means, for example, that car dealerships are required to implement a reporting system.
When the Directive was drafted, it was considered that misconduct in these sectors could cause significant harm to the public interest. Whistleblowers in these industries often work in positions where they may witness such misconduct.
What are
the obligations under whistleblowing regulations?
The law requires that organizations subject to the regulation implement a system for confidentially reporting any suspected misconduct. In addition, the system must allow for the proper investigation and resolution of the reported suspicion, as well as the documentation of the process.
In addition to the employees of the company, the whistleblowing channel can also be used for other stakeholders who may detect wrongdoing in the company’s activities, such as subcontractors.
Employees who use the reporting channel must be protected against any form of retaliation, such as dismissals or demotions.
In addition, the regulation requires dialogue and an impact assessment under the data protection regulation before implementing the reporting channel.
What needs to be taken into account when setting up a reporting channel?
The whistleblowing regulation sets requirements for the whistleblowing channel and the handling of the reports. It requires companies to take both technical and administrative measures.
In practice, at least the following must be taken into account when setting up the channel:
- In addition to establishing the reporting channel, personnel must be trained in its use and informed about the procedures for handling reports.
- Individuals responsible for receiving reports must be designated, and the process for handling reports must be carefully planned to ensure the protection of whistleblowers is not compromised and that the independence of the process is maintained.
- Before implementing the reporting channel, a dialogue must be conducted within the company, and an impact assessment in accordance with data protection regulations must be completed.
- In designing the reporting channel, the company’s processes and the protection of whistleblowers must be considered. Additionally, it is necessary to ensure that training on the use of the channel is also available to new employees.
Complying with regulatory obligations may pose challenges for companies, but these can be addressed through the technical implementation of a reporting channel. A company can acquire a reporting channel and the management of reports from an external service provider, such as Lexia.
Here’s how the Lexia Whistleblowing Service helps your company meet regulatory obligations – and thrive
We offer your company a turnkey whistleblowing reporting channel service that enables anonymous reporting, independent handling of reports, and proper documentation of the process.
By outsourcing the reporting channel to a skilled law firm, you minimize risks and provide a high-quality, reliable, and compliant channel for your company’s personnel and other stakeholders. With the Lexia Whistleblowing Service, you can significantly conserve the resources of your company’s key personnel.
In addition to the technical implementation of the channel, we provide support for employee dialogue and data protection impact assessments, as required by law. In the event of any issues, we offer legal advice to resolve matters, available as continuous business support, through a partnership model, or on a project-specific basis.
Five key benefits of the Lexia Whistleblowing Service for your company
Security
Our secure and anonymous service enhances employees’ sense of safety while improving risk management and detection within your organization.
Ease and efficiency
Access a ready-made, high-quality, and thoroughly tested platform with personnel training included. The service significantly reduces the need for internal resources and can be implemented quickly.
Whistleblower protection
and independence
Reports are handled independently, with whistleblower anonymity fully protected. A reporting channel managed by an external expert increases your company’s credibility and trustworthiness.
Openness and transparency
Our service enhances organizational transparency, helping to foster a safer and more open working environment.
Support in problematic situations
Through our service, you gain legal support for addressing company challenges and resolving issues. We also provide reporting for your company’s management and board of directors.
The Lexia Whistleblowing Service – pricing
Implementation fee 350 € + VAT and monthly fee starting from 180 € per month (in a 12-month contract).
Our service includes:
- training for personnel via the eLearning platform
- a secure and user-friendly technical platform for submitting reports
- evaluation of reports
- handling of reports and communication with the designated contact person
- reporting to the client company’s management
- feedback to the whistleblower
How the technical channel implemented by Lexia works in practice:
Your company will gain access to a regulatory-compliant technical reporting channel, with independent experts handling the reports. Only the team designated by Lexia will have access to the reporting channel, and the handling of reports is governed by the same ethical standards and confidentiality obligations as those applicable to attorneys-at-law.
Our cost-effective and straightforward solution is based on a reliable and high-quality process:
- Report received: The whistleblower receives an acknowledgment of receipt within seven days.
- Report evaluation: The evaluation determines whether the report falls under the scope of applicable regulations and whether the information provided is sufficient. If necessary, requests for additional information will be sent to the whistleblower.
- Report processing: Potential follow-up discussions with the whistleblower and a detailed analysis of the report’s contents.
- Reporting to management: A report is provided to the company’s management outlining the contents of the report.
- Feedback to whistleblower: Feedback is provided to the whistleblower in compliance with regulatory requirements within three months.
Subsequently, if desired, we can assist with resolving the situation caused by the report, from situation analysis to remedial action recommendations.
Additional services related to the implementation of the reporting channel:
1. Dialogue as a service
- Process, guidelines, and necessary templates for minutes and documentation
- Support and guidance for any related questions
- Other guidance regarding labour law or dialogue procedures
2. Data Protection Impact Assessment
(DPIA) as a service
- Preliminary preparation of the data protection impact assessment
- Online meeting to review the impact assessment and completing any missing details
- Finalizing the impact assessment based on the review meeting
- Other legal consultation related to data protection
3. Legal support for addressing issues identified in reports
- For example, situation analyses and remedial action recommendations
Additional services will be agreed upon and invoiced separately.
Contact us:
If your company is still seeking a solution for implementing the reporting channel, please contact us! We would be happy to provide more information.
