On 13 March 2023, Law 2/2023 of 20 February on the protection of persons who report breaches of law and the fight against corruption entered into force, transposing, albeit after the deadline, the Directive (EU) 2019/1937 (also known as the Whistleblower Protection Directive).
The purpose of the regulation is to protect anyone who reports corruption, fraud or violations of EU or national law by establishing protected communication channels and prohibiting any retaliation against whistleblowers.
In this regard, the regulation imposes an obligation which has drawn a lot of attention: implement an internal reporting channel. The obligation applies to companies and public bodies with 50 or more employees and to municipalities with 10,000 or more inhabitants.
This reporting channel must allow for written (including paper and electronic formats), verbal and face-to-face communication via in-person meetings (to be recorded, with prior notice to the whistleblower), guaranteeing the confidentiality of the report and the anonymity of the informant.
Under the new law, companies that fail to set up reporting channels face fines between EUR 1,001 and EUR 300,000 in the case of natural persons and between EUR 10,001 and EUR 1,000,000 in the case of legal persons.
Penalties may also be imposed on persons who file false reports and companies or channels that disclose reports, as all reports must be anonymous.
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