Regulatory and compliance
The directive's adoption raises questions about implementing whistleblower channels in entities of a group of companies
The Whistleblowing Directive 2019/1937 has introduced significant developments in whistleblower protection, particularly the implementation of reporting channels, one of the key elements of any compliance programme.
Article 8(3) of the directive states that legal entities in the private sector with 50 or more employees must establish internal reporting channels and procedures that employees may use to reveal information on breaches of EU law. This article is not open to interpretation: every legal entity with 50 or more employees must set up internal whistleblowing channels and procedures, even if it belongs to a group of companies.
Non-binding statements
However, the European Commission has issued two non-binding statements on this article, allowing for a centralised complaint channel as long as each subsidiary has a distinct channel. If there is one channel for the parent company and one for the subsidiary, the reporting person may choose which channel to use.
Therefore, the directive seeks to ensure the success of the channels and their accessibility for the whistleblower since they may feel more safe reporting the specific case to the subsidiary, perhaps, for fear of retaliation by the parent company or because the parent company is directly related to the event being reported.
Regardless, subject to the requirements of the...
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