You have surely heard of whistleblowing and whistleblower protection. Do you feel that it does not concern you? The opposite is true.
The new legislation, which came into force on 1 August this year, is primarily aimed at employers with more than 50 employees. They must have an internal reporting system in place by 15 December 2023.
However, those of you with fewer employees should also not let the new legislation go unnoticed as the obligation to receive and address reports from employees and other personnel does apply to you too. Whistleblowing is not to be ignored.
If you are interested, we can help you to:
- clarify your whistleblowing-related duties,
- design an appropriate approach to meet your duties; and
- draw up necessary documents and implement an internal reporting system.
Whistleblower protection may seem unimportant for your company. Maybe you are asking yourself why you should so diligently implement legislative requirements which are not essential to your business.
We will explain why. The Whistleblower Protection Act goes hand in hand with values such as respect, dignity and consideration for others. These values, among other things, are in the focus of the new EU legislation, which, even if it becomes effective for businesses in the Czech Republic only in the following years, is already partially in force in the European Union. It is therefore advisable be prepared. The legislation in question concerns non-financial reporting, known under the acronym “ESG” (environmental, social, governance), which allows to measure a company’s impact on society and environment.
This reporting will be important for your business because it will result in a rating for your company which you will need to disclose on various occasions related to business financing (e.g., when applying for a bank loan). If the rating is not high enough, the legislation will not allow the financing institution to cooperate with your company, for example to grant it a loan. Ignoring whistleblower protection equals ignoring one of the three ESG pillars (social) that will be important for your rating in the future.
Do not let the lack of attention to a seemingly unimportant legal duty jeopardize your future status as a market player.
We will be happy to assist you in case you need help in any situation. We are here for you!