On June 24, 2024, the Act of June 14, 2024, on the Protection of Whistleblowers, which implements the Directive on the Protection of Persons Reporting Breaches of EU Law into Polish law, was published in the Journal of Laws. The new regulations will enter into force on September 25, 2024.
This means that over 30,000 businesses are obligated to implement internal procedures for reporting violations of law and taking follow-up actions, known as internal reporting procedures. This obligation applies to entities for which, as of January 1 or July 1 of a given year, at least 50 people perform paid work. The 50 people performing paid work for a legal entity include full-time employees or individuals performing paid work on a basis other than an employment relationship, provided they do not employ other people for this type of work, regardless of the employment basis.
What is the new law about?
The Whistleblower Act is an important piece of legislation designed to protect individuals who choose to disclose irregularities, crimes, or other violations of the law in the workplace. Whistleblowers, often referred to as "whistleblowers," play a crucial role in detecting and combating corruption, money laundering, abuses violating environmental protection regulations, GDPR, consumer protection, public health, and other illegal and ethical practices.
What does this mean in practice?
The entry into force of the Act on 25 September 2024 brings many obligations for entrepreneurs, including:
1. Implementation of internal reporting procedures
As already indicated above, the obligation to implement internal procedures applies to entities for which at least 50 people perform paid work as of 1 January or 1 July of a given year.
This procedure should clearly and precisely define the internal organizational unit or person within the organizational structure, or an external entity, authorized to receive internal reports. Furthermore, it should indicate which impartial internal organizational unit or person is responsible for taking follow-up action, including verifying the internal report and further communication with the whistleblower, including conducting an investigation. The procedure should include the obligation to confirm receipt of an internal report to the whistleblower within seven days of its receipt, unless the whistleblower failed to provide a contact address to which confirmation should be forwarded, as well as the obligation to take due diligence follow-up action. The procedure should also include understandable and easily accessible information on submitting external reports to the Commissioner for Human Rights or public authorities.
The internal reporting procedure should be subject to consultations with:
a) the company trade union or company trade unions if more than one company trade union operates in the legal entity, or
b) representatives of persons performing work for the legal entity, elected in accordance with the procedure adopted in the legal entity if there is no company trade union operating in it.
Consultations should last no less than 5 days and no longer than 10 days from the date the legal entity presents the draft internal reporting procedure.
2. Establishing internal reporting channels
Companies are required to establish internal channels for reporting violations. These channels should be easily accessible, secure, and confidential. Reports can be accepted:
a) verbally, including by phone – the report may be recorded only with the whistleblower's consent; with the whistleblower's consent, an exact transcription of the conversation may be made. If recording is not possible, the report must be documented in the form of a conversation minutes.
b) via electronic means of communication – software such as Whistlelink, Sygnanet.
c) during a face-to-face meeting – at the whistleblower's request, no later than 14 days after receiving such a request.
d) in writing – in paper or electronic form, e.g., via a dedicated email address.
3. Prohibition of retaliation
The main objective of the Act is to create a system of legal protection for whistleblowers to ensure their safety and protect them from retaliation, such as dismissal, suspension, forced unpaid leave, demotion, suspension of promotion, transfer of duties, change of job, salary reduction, suspension of training, negative performance evaluation, disciplinary penalties, mobbing, exclusion, discrimination, non-renewal of contracts, etc. The Act prohibits retaliatory actions against whistleblowers.
A whistleblower is protected from the moment of making a report or public disclosure, provided that he or she had reasonable grounds to believe that the information that is the subject of the report or public disclosure is true at the time of making the report or public disclosure and that it constitutes information about a violation of the law.
Criminal liability
In accordance with the catalogue of offences specified in the Act, anyone who, in order to prevent another person from reporting, prevents him or her from doing so or significantly hinders him or her from doing so, will be subject to a fine of up to PLN 1,080,000, restriction of liberty or imprisonment for up to 3 years.
Equally severe penalties apply to acts of retaliation against a whistleblower, a person assisting in filing a report, or a person associated with the whistleblower. Retaliatory acts are punishable by restriction of liberty or imprisonment for up to two years. If retaliatory acts are persistent, such an offense will be punishable by an absolute prison sentence of up to three years.
Anyone who reveals the identity of a whistleblower, a person assisting in making a report or a person associated with a whistleblower will be subject to a fine of up to PLN 1,080,000, restriction of liberty or imprisonment for up to one year.
Reporting or making a public disclosure when the reporting party is aware that no violation of the law has occurred will also be punishable by a fine of up to PLN 1,080,000, restriction of liberty, or imprisonment for up to two years.
Summary
Whistleblowers play a crucial role in building a fair and transparent society. Thanks to their courage, many cases of corruption, abuse, and other irregularities are exposed and punished. The introduction of the Whistleblower Act is a step towards strengthening the protection of civil rights and increasing public trust in institutions and businesses.
Given the severe penalties for violating the provisions of the Act, we draw your attention to the need to implement procedures in enterprises.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of June 26, 2024.
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