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Austria Enacts Whistleblower Protection Law, Complying with EU Directive

Vienna - March 2023

Austria has taken a significant step towards promoting transparency and accountability by implementing the Whistleblower Protection Act (HSchG), which transposes the European Union’s Whistleblowing Directive into national law.

Key Provisions of the New Law

  • Requires companies with 50 or more employees to establish internal reporting channels, ensuring impartial and independent handling of reports
  • Employers must inform staff about whistleblower protection systems and provide a policy outlining procedures for reporting concerns
  • Whistleblowers can submit reports in written, oral, or digital form
  • Companies have seven days to acknowledge receipt of the report
  • Emphasizes importance of protecting confidentiality of whistleblowers and those affected by their reports, while ensuring GDPR compliance

Implementation Timeline

  • Companies with 50+ employees: six-month deadline to implement internal reporting systems (by August 2023)
  • Smaller organizations: extended deadline until December 2023
  • Failure to comply may result in administrative fines of up to €20,000 per violation

Additional Measures

  • Anonymous reporting allowed
  • Possibility of central whistleblowing systems within corporate groups
  • External reporting offices established in Vienna and other locations as additional channel for whistleblowers

Expert Insights

The new law is a significant step towards promoting transparency and accountability in Austria’s business sector. The delayed implementation of the EU Directive was a major concern, but this legislation addresses that issue.

International Comparison

Austria becomes the 17th European Union member state to transpose the Whistleblowing Directive into national law, joining countries like Germany and France in strengthening whistleblower protection measures.

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