What is the status – and impact – of the EU Whistleblowing Directive that is now in place for member states?

What is the status – and impact – of the EU Whistleblowing Directive that is now in place for member states?

Although it took about four years, and many Member States missed the initial deadline, 100% of the EU member states have now incorporated the EU Whistleblowing Directive into their national legislation.

The directive came into force after high-profile whistleblowing matters, including the Panama Papers, Dieselgate, and Wikileaks – created the impression that those who “blow the whistle” could face retaliation and reputational harm, and this could lead to a chilling effect on exposing fraud and corruption.

The impact of the directive is already being felt, as the Financial Conduct Authority reports an uptick in the number of reported allegations, especially relating to compliance issues and organization culture.

Because the Directive expanded requirements for external and public reporting, it is critical for employers to have strong internal reporting procedures, because if a complaint is filed somewhere else, you cannot try to find a solution yourself and will have no choice but to involve third parties.

To encourage complaints being directed internally, we recommend employers implement online tools that offer a secure and user-friendly way to report suspected misconduct, protect sensitive data, and keep the identity of the whistleblower anonymous. Such technology provides employers with an easy way to uncover and address misconduct, while reducing legal risk, especially when EU laws are embedded within the tool.

As awareness around whistleblowing increases in Europe, we are your local resource for compliance solutions.