EU: Whistleblower Protection Directive Laws Coming Late 2021

The European Union Whistleblower Directive mandates all member states of the EU to incorporate worker protection for any person working in the private or public sector who, having received information related to a breach of EU law in a work-related context, makes a report regarding alleged wrongdoing into national law by December 17, 2021. All companies operating in the EU with 50 or more employees will have to establish an internal reporting system that allows employees and third parties to submit misconduct allegations that will be handled impartially. Policies and procedures must also be put in place to protect workers from retribution.

Allegations related to accounting fraud, food safety, money laundering, nuclear safety and public health are to be covered by law under the directive, though each country can add further protections pertinent to their workers. Some countries, including France, Ireland and Italy, have already adopted new whistleblower protection laws or adapted pre-existing laws to become compliant with the EU directive.

Takeaway: For organizations working in the EU countries, the need for an internal misconduct reporting system is an example of a regulatory demand that can easily be overlooked, raising the risk of costly non-compliance issues. Establishing the reporting system and ensuring its availability to both employees and non-employee workers will need to be prioritized as new laws go into effect.

EU: Whistleblower Protection Directive Laws Coming Late 2021

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