Preparations for the implementation of the Whistleblower Directive, and more specifically Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law, were underway since 2021. During its session of 14 June 2024, the Sejm considered the Senat’s amendments and passed the Whistleblower Protection Act. The bill will now go to the the President for signing, and next it should be published in the Journal of Laws
Employers will have only 3 months to implement whistleblowing procedure preceded with a development of relevant solutions tailored to the needs of a certain organization and their obligatory consultation with trade unions / representatives of persons rendering work for the organization.
Whistleblower regulations have recently become a key focus of the business community. Most of the employers have recognized the benefits of implementation of appropriate procedures and mechanisms for persons reporting breaches of the law. Some of the employers decided not to wait until the Polish whistleblowing provisions are passed and have started procedures implementation based on regulations included in the Directive.
In with the course of the legislative process, numerous questions arose regarding both the subjective and objective scope of whistleblower protection, as well as practical aspects related to internal whistleblowing channels.
In order to collate information about the solutions adopted in the field of whistleblower protection and to facilitate their implementation in employers’ organizations, we have prepared answers to most vital questions on the topic.
What entities will be required to implement an internal reporting procedure?
What are the new obligations employers resulting from the whistleblower protection regulations?
Are organizations permitted to have a common internal reporting procedure within a capital group?
How much time is there for implementation of the internal reporting procedure?
What entities will be required to have an internal reporting procedure?
The number of 50 persons performing gainful work for a legal entity includes employees (with working time translated to full-time equivalents) or persons performing work for remuneration on a basis other than the employment relationship, if they do not employ other persons for this type of work, regardless of the basis of employment.
What are the new obligations employers resulting from the whistleblower protection regulations?
Each organization required to introduce an internal reporting channel will be subject to a number of new obligations.
Are organizations permitted to have a common whistleblowing procedure within a capital group?
The Act permits an introduction of a common internal reporting procedure for private entities belonging to a capital group within the meaning of Article 4 sec. 14 of the Competition and Consumer Protection Act of 16 February 2007. However, such a group procedure must comply with Polish regulations.
In practice, this means that the whistleblowing procedures adopted within the group will have to be verified in terms of their compliance with Polish law.
The act finally passed by the Sejm does not include provisions permitting the total outsourcing of reporting channels. It will be permitted to authorise an external entity to accept internal notifications. However, within an organization an impartial internal organisational unit will have to be established, or a person within the organisational structure of a legal entity will have to be authorised to take follow-up actions, including verification of internal reports and further communication with a whistleblower (covering request for additional information, provision of feedback to the whistleblower, etc.).
How much time is there for implementation of the internal reporting procedure?
The Whistleblower Protection Act is to enter into force within 3 months from the date of its publication (with some exceptions).
In our opinion, the deadline set by the legislator may prove too short for employers to comprehensively draw up and introduce adequate whistleblowing solutions tailored to the needs of their organisations, and to hold obligatory consultations with trade unions / representatives of persons rendering work for the organization. Therefore, it is important for entities covered by the Whistleblower Protection Act to take appropriate steps now.
It is vital to note that a failure to introduce an internal reporting procedure in the organisation or its introduction in breach of the Whistleblower Protection Act is subject to a fine that may be imposed on persons responsible for implementation of the internal reporting procedure.
KPMG Law’s support in whistleblowing-related matters
KPMG Law offers comprehensive support in the process of preparation and implementation of an internal procedure relating to the protection of whistleblowers, conduct of investigations and other activities required by the Whistleblower Protection Act.
