Employing 50 to 249 employees? Deadline for establishing an internal whistleblowing reporting channel is fast approaching!
13 Oct 2023
When the Belgian transposition of the EU Whistleblowing Directive (hereinafter referred to as ‘the Whistleblowing Act’) was published in the Belgian Official Gazette on 15 December 2022, private sector companies employing 250 employees or more had two months – until 15 February 2023 – to set up an internal reporting channel. Companies employing 50 to 249 employees were given some more time, however, their deadline for setting up an internal reporting channel is fast approaching; by 17 December 2023, they have to comply with this obligation.
In this newsletter, we’ll briefly recall the general principles related to setting up such an internal reporting channel. For more general information on inter alia the Whistleblowing Act’s scope, we refer to our newsletter of 27 October 2022 on this topic.
Reporting channels
The Whistleblowing Act distinguished between three types of reporting channels for whistleblowers: an internal channel, an external channel and public disclosure. It is the internal channel that requires private sector companies that employ 50 employees or more to take action, in particular setting up a Whistleblowing Act - compliant internal reporting system within their organisation.
As far as the timing of setting up such an internal reporting channel, companies employing 250 employees or more were required to do so by 15 February 2023. Now, the companies employing 50 to 249 employees are up; they have to comply with this requirement by 17 December 2023.
The internal reporting channel must be secure, impartial and confidential and is aimed at receiving, processing and following up on reports. Reports can be filed in writing, on the phone or in person (and can be filed anonymously in companies employing 250 employees or more). Any report must be answered within a maximum term of three months. Also, a reporting manager – who’s responsible for receiving the reports, communicating with the reporting individual, investigating the report and providing feedback – must be appointed. This position may be held by an employee within the company, but can also be outsourced.
If you’re looking for more information on the provisions of the Whistleblowing Act with respect to external channels and public disclosure, we refer to our above-mentioned newsletter of 27 October 2022.
Sanctions
Failure to comply with the Whistleblowing Act’s obligation to set up an internal reporting channel is punishable by either a criminal sentence of imprisonment of six months up to three years and/or a criminal fine ranging from EUR 600 to EUR 6,000, or an administrative fine between EUR 300 to EUR 3,000.
Assisting your company with the implementation of an internal reporting channel
Establishing a compliant internal system for whistleblowing is a multi-faceted endeavour that lies at the cross-road of several different types of expertise, such as legal, HR and technology. Transparent communication towards the existing employee representative bodies and easy accessible policies and tools are key to ensuring effective reporting. Whistleblowing also involves the processing of personal data, triggering the obligation for your company to comply with the applicable GDPR requirements.
PwC Legal has an extensive team of legal experts who specialise in assisting companies in complying with the Whistleblowing Act in an employment context. Working closely with PwC’s Forensic specialists, PwC Legal can assist your company by providing pragmatic guidance in the preparation, implementation and management of a compliant whistleblowing system in your company.
Looking for more insight into establishing an internal reporting channel or how PwC Legal can assist you in this respect? Don’t hesitate to reach out; we’d love to hear from you.
