The mandatory whistleblowing channel for companies is now a reality. EU member states must adapt to Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 and implement a regulation that guarantees the prevention of internal company crime.
In the case of Spain, the implementing legislation will be Law 2/2023 of 20 February. All companies with more than 50 employees must comply with the obligation to implement a whistleblowing channel.
Is it mandatory to implement a whistleblowing channel for companies?
Yes, it is mandatory to implement a whistleblowing channel in companies with 50 employees or more. According to Law 2/2023 of 20 February, regulating the protection of persons who report regulatory infringements and the fight against corruption, also known as the whistleblower channel law, companies with 50 or more employees must comply with the whistleblower channel obligation and implement this tool, following the guidelines set out in the regulation.
All companies with over 50 employees must have a whistleblower channel by 1 December 2023.
Similarly, companies obliged to implement a whistleblowing channel must appoint a mandatory Data Protection Officer, as all companies with more than 50 employees that process sensitive data or data that could put the privacy, security, or integrity of data subjects at risk must have one.
What happens if your company fails to comply with the obligation to have a complaints channel?
The regulations establish different sanctions for not having a whistleblowing channel, for hindering its operation or the work of its managers, for violating the confidentiality and anonymity of the channel, or for retaliating against whistleblowers, among other actions punishable under the sanctions regime.
These sanctions, which can be applied to individuals and companies, can reach up to 300,000 euros for the former and up to one million euros for the latter in the most severe cases.
Remember that you can count on Leialta to help you manage your company.