Currently, confidential information is the most valuable asset for all types of companies and institutions; and the dark side of this web of data is reflected in the rise of corruption cases occurring at all levels. Thanks to the Whistleblower Protection Law the game is changing in the fight against corruption and other illegal practices.
Want to learn more about this legislative development? Keep reading!
What is Law 2/2023, better known as the Whistleblower Protection Law?
The Whistleblower Protection Law is a legal regulation that seeks to safeguard individuals who report illegal, fraudulent, or dangerous activities within public or private organizations. This law provides protection to whistleblowers against retaliation and guarantees the confidentiality of their identity. The goal is to encourage the disclosure of important information for public interest and transparency while protecting those who bravely decide to report irregularities.
When did the Whistleblower Protection Law come into effect?
On Tuesday, February 21, 2023, the Whistleblower Protection Law was published in the Official State Gazette (BOE). Its main purpose is to protect whistleblowers and informants of corruption-related offenses. It transposes Directive (EU) 2019/1937 of the European Parliament and of the Council of October 23, 2019, better known as the Whistleblowing Directive.
Mandatory requirements and key points established by the Whistleblower Protection Law
The key points of this law help establish an environment in which whistleblowers can report irregularities without fear of retaliation, ensuring that their contribution is valued in the name of transparency and justice.
Below, we outline in detail the principles of this law:
- Confidentiality: the whistleblower's identity is kept secret, protecting them from retaliation.
- Protection against retaliation: this law prohibits any form of retaliation or discrimination against the whistleblower for making a report.
- Good faith reports: protection is granted to those who make reports in good faith, meaning with truthful and credible information.
- Secure reporting channel: this regulation establishes secure mechanisms for whistleblowers to make their reports confidentially.
- Legal immunity: in some cases, whistleblowers may receive legal immunity concerning the information they provide.
- Right to appeal: if the whistleblower faces retaliation, the law provides legal avenues to seek compensation and justice.
- Application of sanctions: the law includes penalties for those who attempt to intimidate, harass, or harm the whistleblower.
- Workplace protection: dismissal or unfavorable treatment of whistleblowers at their workplace due to their report is prohibited.
- Public interest: this law aims to protect the disclosure of information that benefits public interest, such as fraud, corruption, and threats to public safety.
- Confidentiality in legal proceedings: if the whistleblower becomes involved in legal procedures, their identity is kept confidential whenever possible.
Did you know that compliance plays an essential role in implementing the Whistleblower Protection Law?
As you know, the term compliance refers to regulatory or legal compliance within an organization. In the context of the Whistleblower Protection Law, its main role is to ensure the effective implementation of this law throughout the process.
Compliance is crucial to ensure that the most effective and appropriate processes are established and maintained to promote the reporting of illegal conduct while protecting whistleblowers.
What are the main compliance functions related to the Whistleblower Protection Law?
To give you a clearer idea of compliance's role in relation to whistleblower protection, here are some of its main functions:
- Establishment of procedures: the compliance professional is responsible for setting clear and accessible procedures for whistleblowers to submit their reports confidentially and securely. This involves designing effective reporting channels and ensuring that whistleblowers feel protected from possible retaliation.
- Education and awareness: compliance is responsible for educating employees and senior management about the rights and protections granted to whistleblowers under the law. This ensures everyone in the organization understands the importance of reporting irregularities and maintaining confidentiality.
- Investigation and resolution: in collaboration with legal and HR teams, the compliance professional may participate in investigating reports made by whistleblowers. This involves ensuring impartial and thorough investigations are conducted and that appropriate measures are taken to address any identified illegal conduct.
- Monitoring and reporting: compliance is responsible for continuously monitoring the organization’s adherence to the whistleblower protection law. This may include generating periodic reports for senior management and regulatory bodies, highlighting reports received, investigations carried out, and actions taken.
- Prevention of retaliation: the compliance professional also plays a key role in preventing retaliation against whistleblowers. This includes establishing mechanisms to identify and address any attempt of retaliation by the organization or other employees.
We hope you found this post about the recent Whistleblower Protection Law interesting, as it can be closely related to the business world. If you want to stay informed about legal developments and the most important business news, keep reading us!
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