On 25 May 2023, Hungary adopted Act XXV of 2023 on complaints, disclosures in public interest, and related rules on reporting abuses, which is commonly known as the Whistleblower Protection Act and transposes the EU’s 2019/1937 Whistleblower Directive. Organisations in Hungary have 60 days (i.e. until 24 July 2023) to establish or review their whistleblower systems to comply with the Whistleblower Protection Act.
Which organisations are required to establish internal reporting channels?
The Whistleblower Protection Act obligates organisations to establish internal reporting channels in two separate sections, distinguishing between administrative bodies and public sector entities; and other employers. The Whistleblower Protection Act applies to employers that manage workers under a variety of employment relationships, such as employment contracts under the Act I of 2012 on the Hungarian Labour Code, civil service employment, contractors, and individual entrepreneurs.
Private sector entities employing at least 50 persons in employment relationship are required to establish internal reporting channels. SMEs with less than 50 employees are exempted from this obligation, except in certain cases specified in the Whistleblower Protection Act, such as when they fall under the scope of Act LIII of 2017 on the Prevention and Combating of Money Laundering and the Financing of Terrorism (e.g. individual lawyers, law firms, auditors, realtors).
Organisations employing 50 to 249...
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