The EU’s Whistleblowing Directive is now in effect. Businesses with operations in Europe must take proactive steps to address the new requirements.
The whistleblowing regime in the US – based on the Sarbanes-Oxley Act of 2002 (SOX), Department of Justice (DOJ) guidance, and other US whistleblower statutes – has historically been regarded as the world’s gold standard. The EU Directive, however, goes farther, compelling member states to introduce laws that are different and more stringent.
Internal whistleblowing policies and procedures must therefore be evaluated to ensure that companies continue to comply with the changing legal landscape. While whistleblowing, by its very nature, applies to a whole host of issues, it is often the source of anti-corruption investigations (either internally, or externally). The Directive will impact not how allegations of corruption are reported, but how they are investigated, which adds another incentive to ensure that policies are up to date.
What is the Directive?
The Directive requires EU member states to implement legislation mandating that all companies with 50+ workers establish internal reporting channels to enable workers to report breaches of certain EU laws and ensure that those workers who have made a whistleblowing report are legally protected against any form of retaliation. “Workers” are broadly defined to include not just employees but any persons who by virtue of their work-related activities have access to information...
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