Since the introduction of Directive 2019/1937 on the protection of persons reporting breaches of Union law, commonly known as the Whistleblower Directive, businesses across Europe have been required to implement appropriate procedures and systems allowing employees and other persons associated with the company to report irregularities. In Poland, these provisions have been implemented through the new Whistleblower Protection Act. In this article, we will explain who whistleblowers are, the obligations of companies, how to implement an effective internal reporting procedure, and the deadlines and legal consequences of non-compliance with these regulations.

Who is a Whistleblower?

A whistleblower is a person who reports breaches of law, ethical principles, or other irregularities that have occurred within an organization with which they are associated, such as an employee, contractor, collaborator, intern, or a person providing services under civil law contracts.

Examples of irregularities reported by whistleblowers may include:

• Labor law violations, such as discrimination, bullying, or failure to respect workers’ rights,
• Financial fraud, e.g., accounting manipulations, money laundering, tax evasion,
• Breaches of environmental protection regulations,
• Health and safety violations,
• Breaches of data protection and privacy laws.

Who is Affected by Whistleblower Protection Regulations?

The Whistleblower Directive covers a broad range of entities that are required to implement whistleblower protection procedures. In Poland, these regulations have been implemented through the Whistleblower Protection Act, which will come into effect on September 25, 2024. According to this Act, the following entities are required to implement reporting procedures:

• Private companies employing at least 50 persons performing remunerated work on their behalf (calculated as full-time equivalents) or persons providing work for remuneration based on a contract other than an employment relationship,
• Public sector entities, including local governments and public institutions,
• Companies in specific sectors, such as those operating in financial services, products, and markets, anti-money laundering and counter-terrorism financing, transport safety, and environmental protection, regardless of the number of employees.

What Are the Obligations of Employers in Poland?

According to the Whistleblower Protection Act, employers are required to implement mechanisms for reporting irregularities and protecting whistleblowers. Key obligations include:

• Implementing an internal reporting procedure,
• Ensuring the protection of the whistleblower’s identity,
• Prohibiting retaliatory actions,
• Meeting deadlines for acknowledging receipt of the report and providing feedback.

How to Implement an Effective Internal Reporting System?

Implementing an internal reporting procedure requires proper planning. Key aspects include:

• Secure communication channels,
• An independent unit handling reports,
• Monitoring and updating procedures,
• Education and fostering a reporting culture within the company.

What Are the Consequences of Non-Compliance with the Whistleblower Protection Act?

Failure to comply with the obligation to implement whistleblower protection procedures under the Polish Whistleblower Protection Act may result in consequences, including:

• Fines imposed on entities for failing to implement appropriate procedures,
• Risk of reputational damage – failure to protect whistleblowers may lead to public disclosure of irregularities in the media, negatively impacting the company’s image.

Summary

Regulations concerning whistleblower protection, both at the EU and Polish levels, represent an important step towards increasing organizational transparency and accountability. Implementing internal reporting procedures not only protects companies from legal sanctions but also fosters a culture of trust and ethical conduct.

Our law firm offers support in helping organizations comply with new legal requirements, developing appropriate procedures, and training employees on whistleblower protection.