New Protection of Whistleblowers at EU Level
A whistleblower is defined as a person who, either within an organisation or to an outside authority, reports or discloses information on a wrongdoing obtained in a work-related context, helps prevent damage and detects threat or harm to the public interest that may otherwise remain hidden. In the described cases there is a common assessment on the balance between “proper behaviour” and the preservation of employment and provision of life. Since the protection available to these individuals at EU level is fragmented, the aim of the Proposal for a Directive of the European Parliament and of the Council on the protection of persons reporting on breaches of Union law is to protect individuals against retaliation.
The proposal defines the protection of whistleblowers as a means of improving the enforcement of Union law. The directive would thus cover a wide range of areas or cases of violations of EU legislation in the case of public procurement, financial services, money laundering and terrorist financing, product safety, transport safety, environmental protection, food and feed safety, animal health and welfare, public health, consumer protection and privacy.
For some private and public-sector entities, the Proposal entails the obligation to establish internal channels and procedures for reporting and following up whistleblower reports. The Proposal classes legal entities in the private sector as (i) private legal entities with 50 or more employees; ii) private legal entities with an annual turnover of EUR 10 million or more; and iii) private legal entities of any size operating in the area of financial services or vulnerable to money laundering or terrorist financing. Under the Proposal these entities would be required to i) establish a channel for receiving reports that ensures whistleblower identity confidentiality, ii) designate a person competent for following up on whistleblower reports, iii) diligently follow up the reports, iv) allow a reasonable timeframe, not exceeding three months following the report, for providing feedback to the whistleblower, and v) provide clear and easily accessible information about making reports externally to competent authorities.
If the proposal is adopted, whistleblowers will enjoy robust and blanket protection against retaliation. Thus, whistleblowers will not have to worry about any negative consequences as a result of their report (dismissal, transfer, financial consequences, etc.), and in addition, a presumption will prevail that the whistleblower did not violate any contractual arrangements limiting the disclosure of information. Moreover, whistleblowers shall have recourse to protection in judicial proceedings.
