Interest in the whistleblowing law and its application in Portugal has been growing and more and more companies have implemented the necessary processes and/or are aware of the requirements, added value and what to do to comply with it – however, the respective implementations may be underway, as are many entities seeking to learn more so that they can deal with these processes as soon as possible and thus be able to protect and empower their employees and their organization with its benefits.
Let’s start by looking at a few key points, the Whistleblower Act, also known as the Whistleblower Protection Act or the Whistleblowing Act, is legislation that aims to protect and empower employees who report irregularities, misconduct, or crimes in their organizations.
It is part of a set of laws whose main objective is to promote transparency, responsibility and ethics in companies and institutions.
The Whistleblowing Law (Law no. 93/2021, of December 20) transposes into national law Directive (EU) 2019/1937 of the European Parliament and of the Council on the protection of persons who report breaches of European Union law.
This law establishes the general regime for the protection of whistleblowers of infringements, which are acts or omissions contrary to rules or standards relating to various areas, such as public procurement, financial services, product safety, environmental protection, public health, consumer protection, protection of personal data, financial interests of the European Union, internal market rules and organized crime.
The purpose of the law is to ensure the protection of individuals who report or publicly disclose an offense that has been committed, that is being committed or can reasonably be foreseen to be committed, as well as the attempt to conceal it, based on information obtained during their professional activity.
The law allows whistleblowers to use internal channels (within the public or private entities where they work or collaborate) or external channels (with the competent authorities) to report infringements. The law also allows for the public disclosure of infringements in certain circumstances, such as when internal or external channels do not work or when there is an imminent or manifest risk to the public interest.
Whistleblowing can be beneficial for employees in many ways. By reporting a breach, the employee can help prevent financial and reputational damage to the company, as well as protect the public interest. In addition, the whistleblowing law (Law no. 93/2021, of December 20) establishes a general regime for the protection of whistleblowers, which guarantees whistleblowers a set of rights and guarantees, such as the confidentiality of their identity, non-retaliation by the entities involved, legal and psychological assistance, compensation for damages suffered and exemption from civil, criminal, or disciplinary liability for whistleblowing.
Here is a summary of some of the main aspects of the Whistleblowing Act that aim to protect and empower employees:
These laws are important for promoting integrity and accountability in companies and institutions, while protecting whistleblowers willing to report wrongdoing. They play a key role in preventing and detecting fraud, corruption, and other forms of organizational misconduct.
By implementing a good management tool for your whistleblowing channel, you will be giving your employees (and beyond, such as external service providers, customers, suppliers, etc… depending on the configuration of your implementation scenario) the necessary protections and capacities for action so that they feel positively compelled to act (and do so) for the sake of defending:
…of the organization that will receive the report in question. We believe that with these processes taking place in more and more organizations, we will all be contributing to a more evolved society, with higher levels of ethics, increased transparency and greater reputation, these values will cut across the entire society in which we live.
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In short, whistleblowing law calls for continuous attention. By applying what is explained here about whistleblowing law, the organisation strengthens compliance, protects those who report and reduces legal risk.
In short, whistleblowing law requires clear processes, defined responsibilities and regular review. Organisations that handle whistleblowing law consistently reduce risk and can show good practice to clients and regulators.
