Introducing Whistleblowing – What You Should Know

Whistleblowing, i.e. an internal system ensuring protection of whistleblowers, in particular employees, is expected to be introduced this year. What exactly does whistleblowing mean, what benefits can it bring to a company and what needs to be arranged in advance? You will learn all of this in our article.

What is whistleblowing?

“Whistleblowing” refers to a situation where an employee reveals unlawful, harmful or unethical practices within his/her work. Suggestion boxes and the Whistleblower Protection Act are intended to enable people to report these practices without any fear. For more information, visit the website of the Ministry of Justice at: oznamovatel.justice.cz. It is important that employees can trust this system and use it instead of making anonymous submissions to the authorities, police or media.

Who will have to have a suggestion box?

Suggestion boxes will be mandatory for all employers with 50 or more employees. The number of employees will probably include full-time employees as well as employees working on the basis of agreements to perform work and agreements to complete a job.

When will the system become mandatory?

According to the original plan, the Czech Republic was to introduce the system by 17 December 2021. At the moment, the bill has been approved by the Chamber of Deputies and passed to the Senate. The expected effective date of the Act is between July and August 2023. For private companies, the latest deadline for the implementation of the reporting system will be 15 December 2023. For public entities, this information is not yet available; however, it is assumed to be the time when the Act enters into effect.

What needs to be ensured?

Priority will need to be given to enabling reporting using all manners, i.e. in writing, electronically, by telephone and in person.

1. Implement an internal reporting system and designate a competent person
   The first step will be to introduce a reporting system enabling whistleblowers to make reports. Subsequently, it will be necessary to designate a competent person who should be independent of the management and will be responsible for handling the reports. This person may be either an internal or an external staff member.
2. Publish the necessary information on your website
   It will be necessary to provide certain information concerning the system on your website, as well as to provide information on who the whistleblowers can contact. At the same time, it will be necessary to state that, for example, you exclude reports from job seekers or suppliers.
3. Set up the process of handling reports
   The current draft Act sets a preliminary deadline of 7 days to respond to a report. Inform the whistleblower that you have received his/her report and that it will be addressed. The deadline for the actual resolution of the matter is 30 days with the possibility of extension for up to 90 days. Subsequently, the report and its resolution must be recorded for 5 years.
4. Training
   It will be necessary to provide for training of the competent person who will be responsible for the functionality of the suggestion box. Training of employees is not yet enshrined in the Act, but we consider it important to train them so that they understand how to use the system and what situations they should report.

Focus on the positives and avoid retaliation

The introduction of a suggestion box in your company can bring you a number of positives. In addition to complying with a legal obligation, it can deepen trust between the employer and employees and set up a healthy and ethical environment. In some cases, it can also prevent greater financial damage or negative reputation.

You should resolve any reports within the statutory deadline and make sure no report is ignored. Otherwise, you could be fined because the whistleblower may turn directly to the Ministry of Justice and publish the report. Do not retaliate, e.g. by reducing the salary of employees or terminating them, and avoid disclosing their identity. The whistleblower can always access the box using his/her own data and check the progress.

Contact the experts

If you need to set up a suggestion box, it is advisable to contact an expert to help set up the processes. An expert can help you with preparation of an internal guideline and compliance with the GDPR, i.e. matters related to personal data protection. An expert may also provide training for competent persons or employees. Last but not least, an expert can also deal with more complex reports and protect your company against false reports.

Author’s note: It should be noted that the final version of the Act has not yet been approved and, therefore, minor changes may occur.