On June 18, 2022, under the scope of Law 93/2021, dated December 20, a new whistleblower protection regime came into effect, requiring private and public sector companies that employ 50 or more workers to have their own internal whistleblowing channel for infractions.
This measure aims to protect the identity of whistleblowers (whistleblowers) and enhance the ethical culture of organizations, promoting transparency through the reporting of infractions and irregularities that occur during the whistleblower’s professional activity. Non-compliance with this new law requires the payment of fines that can reach up to €250,000.00.
Informing appropriate entities about these infractions will safeguard not only public interests but also the well-being of the companies themselves and society. It is emphasized that confidentiality and security of whistleblowers must be guaranteed.
How to Implement a Whistleblowing Channel in the Company and Comply with Law 93/2021
1. Creation of an Internal Whistleblowing Channel
As we have seen, regardless of your sector of activity, all organizations and public and private companies with more than 50 employees must create an internal whistleblowing channel that allows employees to report irregularities without facing reprisals. There should be at least one person in the company who understands the importance of the whistleblowing directive, how to implement it, and the procedures to follow. On the other hand, all employees should be aware of the existence of the whistleblowing process. This should be communicated to the different teams.
Reports can be made through the following means:
- Online, on dedicated platforms (internet or intranet);
- In writing, sent by mail to a physical address;
- Via telephone line or messaging system created for this purpose;
- In person (if that is the whistleblower’s intention) to be conducted within a timeframe agreed upon by both parties;
There is also the possibility of reporting through third-party entities, such as external specialized platforms, external consultants, union representatives, or workers. These must ensure respect for confidentiality, impartiality, and data protection.
2. Monitoring Submitted Reports
In the case of a report submission, the process must be monitored and responded to by the employee responsible for managing reports within the organization. The response time is 3 months or, in exceptional cases, 6 months. It is the responsibility of the organization and the person in charge of the process to inform the whistleblower about the status of the process and update them on new developments.
3. Protection of Whistleblowers Acting in Good Faith
Law 93/2021 also stipulates that whistleblowers acting in good faith should be protected from retaliation, intimidation, or even dismissal and other types of reprisals, such as having to forfeit rights or benefits from the company (being negatively evaluated, receiving training, among others). In the case of proof of non-compliance with these premises, fines can range from 1,000 to 25,000 euros (individuals) and from 10,000 to 250,000 euros (legal entities).
PONTUAL has developed a platform for Internal Reports where anonymous reporting processes can be submitted and will be managed and monitored by the company official designated for this purpose. During the process, the whistleblower can always check the status of the report through a code generated on the platform, and when the analysis is completed, the conclusion will be communicated to the whistleblower. Review our webinar Internal Whistleblowing Channel – new obligation for companies and learn more about this topic.
You can also find more detailed information about law 93/2021 of December 20.
