The whistleblowing system is a system functioning within an organization, which is available to the Company’s employees and also to other affected parties (e.g., suppliers, customers, other service providers etc.). Through this platform, these persons have the possibility to report abuses endangering their person or rights and also affecting the activity of the Company.
The reporting of complaints, whistleblowing and abuses is currently regulated by the Act No. CLXV of 2013 on complaints and reports of public interest.
Besides this, the Whistleblowing-Directive (EU-Directive No. 2019/1937) ensures full protection for employees in both the public and private sectors. The Directive stipulates that the organization is obliged to treat with utmost discretion any information from which the identity of the whistleblower can be deducted and has a confidentiality obligation in this regard. As a result, employees do not have to be afraid of reporting any abuse (complaint, reporting of public interest).
From 17. December 2021, die application of whistleblowing systems is mandatory for organizations with 250 or more employees. However, from 17. December 2023, private sector companies with 50 or more employees will also be affected by the regulation. It is therefore advisable for all organizations to act as soon as possible and prepare the appropriate internal regulation of the system.
What actions or behaviors can be reported?
Any breach of ethics rules, any other violation of applicable laws, any incident that deals specifically but not exclusively with the following areas:
- human rights
- fraud
- corruption
- privacy
- international sanctions and embargoes
- workplace harassment
- health and safety
- environmental protection
- discrimination
- criminal offenses or misdemeanors
Who can make a report?
According to the legal provision, all people may make the report if they have a legitimate interest in eliminating or stopping the act that is the subject of the report.
Why is it appropriate for organizations to establish a whistleblowing system?
The operation of a whistleblowing system within an organization can help the organization prevent fraud, maintain its reputation, and prevent problems form escalating. It provides the opportunity to address issues in a timely manner and prevent those from occurring in the future, minimizing the risk of harm to the organization and it also increases awareness within an organization, as we may not be aware of unethical things happening under our noses without the various reports.
Our office has a self-developed software that is capable of receiving and handling anonymous whistleblowing reports, as well as reviewing them. So, if your company intends to set up and operate a whistleblowing system, contact our office with confidence!
