For advice on how Safecall can help you with Czech whistleblowing legislation compliance, call us on +44 (0) 191516 7720 or send us an email to info@safecall.co.uk.
The Czech Republic Whistleblower Protection Act, which came into effect on 1 August 2023, is a landmark legislation designed to protect individuals who report breaches of law within their workplace. This Czech Republic whistleblowing legislation was introduced to implement the EU Whistleblowing Directive.
It sets a minimum standard of whistleblower protection and mandates obliged entities, including employers with more than 50 employees, to establish a whistleblowing system. This legislation signifies a crucial step towards fostering a culture of transparency and accountability in the workplace
Requirements for Employers
The Czech Republic Whistleblower Protection Act imposes several requirements on employers and organisations operating in the country:
- Establish an Internal Reporting System: Employers with more than 50 employees are required to establish an internal reporting mechanism. This system should ensure the receipt, assessment, and resolution of reports by their employees and other persons.
- Appoint a Designated Person: Employers must designate an impartial person to handle the reports. This person will be responsible for receiving the reports, notifying the reporting persons within the set deadlines of the receipt and resolution of their reports, and proposing resolutions.
- Ensure Protection of Whistleblowers: The Act requires employers to protect whistleblowers against retaliation¹. This includes any act or omission following their report and relating to the whistleblower’s work or other activity that may cause them harm.
- Publish Information: Organisations must publish required information on the company’s website, including how to report through the whistleblowing channel and how to report to authorities.
It’s important to note that while the Act primarily applies to employers with more than 50 employees, employers with fewer than 50 employees may also want to consider implementing an internal channel to mitigate the risk of external reports or public disclosures. Moreover, some provisions of the Act, such as the prohibition on retaliation against the whistleblowers, apply to all employers irrespective of the number of employees.
Consequences of Breaching Compliance
The Czech Republic Whistleblower Protection Act outlines several penalties for non-compliance:
- For Obliged Entities: If an obliged entity fails to introduce an internal reporting system, designate a whistleblowing officer, or allows the whistleblower or other protected persons to be subjected to retaliation, the obliged entity may be fined up to CZK 1 million.
- For Whistleblowing Officers: Whistleblowing officers can be fined up to CZK 100,000 for failing to comply with their obligations.
- For Obstructing a Whistleblower: Anyone obstructing a whistleblower from reporting or exposing him/her to retaliation is also punishable by a fine of up to CZK 1 million.
- For False Reports: In the case of a whistleblower knowingly submitting a false report, they can be fined up to CZK 50,000.
These penalties underscore the importance of adhering to the Act’s requirements and protecting the rights of whistleblowers.
Protection for Employees
The Czech Republic Whistleblower Protection Act provides several protections and safeguarding measures for whistleblowers:
- Protection Against Retaliation: The Act prohibits any form of retaliation against whistleblowers, including suspension, dismissal, demotion, transfer of duties, reduction in wages or working hours, withholding of a promotion or training, disciplinary measures, intimidation, harassment, discrimination, failure to convert a temporary contract into a permanent contract or to renew a contract, and early termination.
- Scope of Protection: Protection under the Act will be provided to whistleblowers who have performed or are performing work or work-related activities for an obliged entity (including indirectly) or who have been in contact with the obliged entity in connection with the performance of work or work-related activities.
- Reporting Channels: The Act allows whistleblowers to make reports via an internal reporting channel established by the employer. In the most severe cases, whistleblowers can even make the report public.
- Anonymity: While the Act does not explicitly allow for anonymous reporting, the obliged entity may voluntarily decide to accept anonymous reports and handle them either as prescribed by the Act or in line with their internal regulations.
These protections and measures are designed to encourage individuals to report potentially unlawful conduct without fear of retaliation, thus fostering a culture of transparency and accountability in the workplace.
Reception of the Law
The Act has been widely discussed in the media. After turbulent discussions and legislative proposals, the bill was finally passed and came into force on 1 August 2023. The Act has been generally well-received by the international community, legal entities, and organisations in the Czech Republic. Recognised as a significant step forward in line with European legislation, the Act has been seen as a crucial development in institutional protection for whistleblowers. The anticipation and close monitoring of the Act’s implementation reflect its importance and impact on fostering a culture of transparency and accountability in the workplace.
Importance of External Whistleblowing Hotline Provider
An external whistleblowing solutions provider like Safecall can play a crucial role in helping organisations comply with the Czech Republic Whistleblower Protection Act. Here’s how:
- Legislative Compliance: Safecall provides a secure and confidential platform for whistleblowers to report potentially unlawful conduct. This aligns with the Act’s requirement for employers to establish an internal reporting mechanism. By using Safecall’s services, organisations can ensure they are meeting this key requirement of the Act.
- Cultural Perspective: Safecall’s solutions can help foster a culture of transparency and accountability within an organisation. By providing a safe and secure platform for employees to voice their concerns, organisations can demonstrate their commitment to ethical practices and open communication.
- Trust Building: Trust is a critical component of any whistleblowing system. Employees need to trust that their reports will be handled appropriately and that they will be protected from retaliation. Safecall’s robust protections and secure reporting platform can help build this trust, encouraging more employees to come forward with their concerns.
In conclusion
The Czech Republic Whistleblower Protection Act is a significant legislation that promotes transparency and accountability in the workplace. It mandates employers to establish internal reporting mechanisms, offers robust protection for whistleblowers, and imposes penalties for non-compliance.
The Act has been well-received globally and is seen as a crucial step towards institutional protection for whistleblowers. As the Act continues to be implemented and its impacts become more apparent, further discussion and analysis will undoubtedly be necessary.
Organisations can ensure compliance by implementing secure reporting systems, protecting whistleblowers from retaliation, and fostering a culture of openness. External whistleblowing solutions providers like Safecall can play a pivotal role in this process, helping organisations meet legislative requirements while building trust within their workforce
Need to Talk to a Whistleblowing System Expert?
Call us on +44 (0) 191516 7720
If you need to give us more detailed information about your business, get in touch with us via a contact form