How to get compliant with the Whistleblowing Law
On December 17, 2021, the EU Whistleblower Directive regarding the protection of persons who report violations of Union Law, entered into force. The Directive was drafted with the aim of prosecuting cases of fraud, corruption, money laundering and other serious violations of European Union Law in companies and organisations. The protection of whistleblowers is the key to implementing the law efficiently.
No employee likes to be perceived as the “snitch” of the company. Although reporting violations is often perceived as a moral duty, no one wants to create a negative reputation for themselves in the workplace. As a result, whistleblowing laws pay close attention to the protection of whistleblowers.
Fighting cases of corruption, fraud and bad corporate practices is important. However, guaranteeing the protection of the whistleblower is key to encouraging whistleblower reports and ensuring that the law is accepted and, in the end, successful.
Complaints for cases of corruption, fraud and other business offenses have always existed. In 2020, for example, more than 10,000 internal complaints were filed within IBEX companies in Spain. This figure represented 10% more complaints than the previous year. The Falciani case in 2016 or the well-known fraud scandal in the residences of BB Serveis, in which millions of euros were defrauded, are also significant. Although the individuals or groups of people who reported the facts complied with their moral duty, there were no specific legislation in place to protect them. Today, thanks to the whistleblower protection laws, this has begun to change and prospects for the future are more hopeful.
Despite the logical reluctance, people who report misconduct in their organisations will be protected by law. Usually, whistleblower laws define what cases are considered as retaliation. Some of the many cases expressly prohibited and punishable by law include dismissal, denial of internal promotion, coercion, sexual harassment or sex discrimination, mobbing, abuse of power of any kind, systematic negative evaluations, cancellation of permits or leave of absence.
Protecting whistleblowers at the corporate level has two main advantages. First and foremost, it encourages the use of good practices in the company. Secondly, it will facilitate the reporting and prosecution of bad ones. Whistleblower protection laws make it possible for people to fulfil their moral duty without jeopardizing their integrity, reputation, or jobs.
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