How to get compliant with the Whistleblowing Law
If your company operates in the European Union—through offices, subsidiaries, or service delivery—you are subject to local laws, including the EU Whistleblower Protection Directive (2019/1937) and GDPR. These regulations require businesses to implement secure, confidential reporting channels for whistleblowers and protect individuals from retaliation.
Under the directive, all companies with 50 or more employees in the EU (or municipal operations with 10,000+ residents) must implement internal reporting systems. These systems must:
Be secure
Guarantee confidentiality
Have a designated owner
Adhere to defined timeframes
Meet GDPR guidelines
Allow for written and/or verbal reports
Each EU member state enforces this through national legislation. While the core requirements remain the same, the specific penalties and reporting procedures may vary by country.
Any individual who becomes aware of work-related misconduct can submit a report. Protection extends beyond current employees to include former employees, job applicants, contractors and suppliers, and supporters of the whistleblower.
Whistleblowing reports can cover violations of EU law related to various issues, including but not limited to:
Money laundering and tax fraud
Product and transport safety
Data protection and privacy violations
Public health concerns
Animal welfare violations
Environmental protection breaches
Whistleblowers are legally protected from any form of retaliation when submitting a report through the designated reporting channel. To qualify for protection, the whistleblower must have reasonable belief that the information they are providing is true at the time of reporting.
The EU Whistleblowing Directive does not prescribe uniform penalties across all countries. Instead, each EU member state enforces its own set of sanctions for companies that fail to comply. These typically apply for companies that:
Breach confidentiality by disclosing a whistleblower’s identity without consent.
Retaliate against whistleblowers through actions such as dismissal, harassment, or discrimination.
Non-compliance can lead to substantial fines, civil liability, and reputational damage. Beyond legal exposure, failure to meet these obligations can erode trust among employees, business partners, and regulators.
U.S. companies can meet EU whistleblowing laws with these essential steps:
Implement a procedure to acknowledge receipt of the report within seven days, and provide feedback to the whistleblower within three months.
Comply with GDPR requirements by ensuring all personal data is handled in accordance with EU privacy laws.
Establish reporting channels that guarantee confidentiality and protect the identity of whistleblowers and any individuals named in reports. Secure your system against unauthorised access and maintain safe records.
Provide flexible reporting options. Accept written reports via an online platform, verbal reports through phone or voice messages, and offer personal meetings upon request.
Appoint a qualified person or department to handle incoming reports. Their responsibilities should include managing the reporting process, maintaining ongoing communication with the whistleblower, and providing timely feedback
Ensure your reporting channels are easily accessible to all employees and extend access to external stakeholders such as suppliers, contractors, shareholders, trainees, and job applicants.
Choosing the right Whistleblowing Solution
If your U.S. company has EU operations, your reporting system must comply with both the EU Whistleblower Directive and GDPR.
Whistlelink provides a fully compliant, user-friendly solution tailored to U.S. businesses operating in Europe. Use our free checklist to make sure your whistleblowing system meets all legal and technical requirements.
Whistleblowing is the act of reporting illegal, unethical, or harmful behavior within an organization—whether public, private, or government. Common concerns include fraud, corruption, harassment, discrimination, safety violations, and environmental risks. Whistleblowing systems allow individuals to speak up safely and responsibly.
Under the EU Whistleblowing Directive (2019/1937), whistleblowers are protected from retaliation—including termination, demotion, harassment, or other forms of discrimination—when they report breaches of EU law.
Protected areas include:
Financial services, money laundering, and terrorist financing
Public procurement and health
Product, food, and transportation safety
Data privacy and consumer protection
Environmental and radiation safety
Animal welfare and public health
IT and cybersecurity (network and information systems)
To receive protection, whistleblowers must act in good faith and use internal or official reporting channels.
Companies operating in the EU with 50+ employees must establish secure and confidential internal reporting channels. These channels must:
Guarantee whistleblower confidentiality
Be accessible to both employees and external stakeholders (e.g. suppliers or contractors)
Be managed by a designated individual or team
Allow written and/or verbal reporting
Comply with EU data protection laws (GDPR)
The directive was enacted to strengthen protections for whistleblowers, prevent corruption, and promote transparency within organisations. It creates a uniform legal framework across EU member states, helping to ensure ethical business practices and public trust.
U.S.-based companies with operations, subsidiaries, or employees in the EU must implement a secure whistleblowing system that meets the directive’s requirements. This includes:
Providing secure and confidential reporting channels
Meeting GDPR data privacy standards
Acknowledging reports within 7 days and following up within 3 months
Offering anonymous or confidential reporting options where applicable
The directive applies to:
All companies with operations in the EU employing 50 or more people
Municipalities with more than 10,000 residents
Certain high-risk sectors (e.g. financial services, public health, or defense) regardless of company size
This includes U.S. companies with branches, entities, or employees in EU member states.
While the directive itself does not specify penalties, each EU country enforces its own national whistleblower protection laws. These may include:
Fines for failing to establish proper reporting systems
Legal liability for retaliation or confidentiality breaches
Reputational damage and loss of trust from regulators, partners, and the public
No. It also applies to public sector entities, including municipalities and government departments, within EU member states.
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