New requirements for whistleblowing systems

A new mandatory Whistleblower Act enters into force on 17 December 2021. The law means, among other things, that companies with at least 50 employees are obligated to establish an internal reporting channel for whistleblowers to enable identification of potential irregularities. As part of MAQS commitment to sustainable entrepreneurship and to facilitate and accelerate the business community’s implementation of necessary processes and structures, MAQS can now, together with industry-leading Whistleblower Software  offer a customized complete solution for management of whistleblowing.

Requirements for internal reporting channels

The Act, which is expected to enter into force on 17 December 2021, is an implementation of EU’s so-called Whistleblower Directive. It introduces provisions for the protection of individuals, who in a work-related context, report misconduct at a company. To ensure an effective protection for Whistleblowers, the Act will include an obligation for all companies with more than 50 employees to establish internal reporting channels and procedures. In short, everyone within the private and the public sectors with at least 50 employees must have a fully functioning whistleblower system in place. The system must also fulfil a number of specifically indicated requirements regarding, among other things, reporting, feedback and follow-up. Overall not an entirely uncomplicated process.

According to the legislative proposal, the obligation to establish internal reporting channels will be introduced gradually, but as the media interest is great and other protective rules already enter into force on 17 December 2021, it is clear that leading players have a considerable goodwill to gain – commercially and media. For medium-size private companies (with more than 250 employees) the requirement is that a reporting channel must be in place no later than 17 December 2023, while for other business operators the requirement is set as early as 17 July 2022. At MAQS, we have already noticed increased demand for advice on whistleblowing.

A safe and trustworthy organisation results in a prosperous company

Implementation of a whistleblower system naturally also entail benefits in addition to pure compliance. An organisation that establishes a whistleblower system creates a channel whereby misconduct that negatively affects employees and the organisation is handled efficiently, which leads to increased goodwill both within and outside the business. The organisation gives a clear signal that they take issues of misconduct and unethical behaviour seriously, which has a positive effect on the trust and commercial relations, both internally and externally. Internal incident management also reduces the risk for negative publicity and is cost-saving as misconduct that remain undetected often escalate and become more costly over time.

A customised complete solution

MAQS together with Whistleblower Software offers a ”one-stop shop” for companies in need of a cost effective and quality-assured whistleblower system. The system is specially designed to meet legal requirements in accordance with both whistleblower regulations and data protection regulations and provides maximum security with customer-unique flexibility. Our offer includes everything from a well-established technical solution for reporting, system operation and maintenance to the implementation of whistleblower systems and case management. Case management includes, among other things, assessment of received reports, feedback with recommendations on measures and final handling of cases – all through secure communication channels. When implementing, we place special emphasis on creating a customised total solution according to your specific needs and ensure that the organisation understands how the system works. We always strive to achieve a close collaboration – all for the purpose of ensuring both the legal requirements as well as the organisations’ own ambitions for the implementation of the whistleblower system.

Our offer

• System for complete compliance of the Whistleblower Act and GDPR where we also help you to produce suitable information and other documentation for the user
• Customised whistleblower policy and business process for administration of the system. We decide together what the system should look like for your particular business
• Customised personal data processor agreement and data transfer agreement between you, WBS and us (depending on the model chosen)
• Integration of a user-friendly digital platform that can receive reports in over 70 different languages. Our platform is ISAE3000 compatible and applies end-to-end encryption in accordance with Schrems II
• Screening of current reports. We maintain contact with Whistleblowers and ensure a smooth and efficient follow-up of reports. We utilise our extensive experience of handling whistleblower cases and carry out investigations where needed
• Transparent cost model with fixed pricing levels based on the needs and ambitions of your organization

Contact us to learn more about the pending legislation and how we can simplify your company’s handling of whistleblowing.