Financial Crime World

Belgium Finally Crosses the Finish Line on Whistleblower Protection Laws

Belgium Transposes European Union’s Whistleblowing Directive

Belgium has finally completed its long-awaited transposition process of the European Union’s Whistleblowing Directive, introducing significant changes to whistleblower protection in the country. The new law aims to protect individuals who report violations in various areas of EU and national law, including:

  • Public procurements
  • Financial services
  • Transport safety
  • Consumer protection
  • Food and feed safety
  • Product safety
  • Radiation protection
  • Nuclear safety

Prior to Transposition: Lack of Comprehensive Law

Prior to the transposition, Belgium did not have a comprehensive whistleblowing law in place. The new legislation closely aligns with the EU Whistleblowing Directive but also expands on it by focusing on:

  • Tax and social fraud

The law provides for three reporting channels:

  • An internal channel within a company or organization
  • An external channel set up by the government
  • Public disclosure through the press

Requirements for Companies

Organizations employing 250 or more people are required to establish a secure, impartial, and confidential internal reporting channel by February 15, 2023. Those with between 50 and 249 employees have until December 17, 2023, to implement the necessary measures.

Protections for Whistleblowers

The law also protects whistleblowers from retaliation, defined as a broad range of actions including:

  • Suspension and dismissal
  • Changing terms of employment
  • Demotion
  • Withholding promotion
  • Blacklisting
  • Intimidation

Those who suffer retaliation are entitled to compensation ranging from 18 to 26 weeks’ salary or actual damages if they are not an employee.

Expected Impact on Companies

The new whistleblowing law in Belgium is expected to bring significant changes for companies operating in the country, requiring them to establish robust reporting systems and protocols to ensure the protection of whistleblowers.

EU Whistleblowing Directive: Creating a Single Protection Standard

The EU Whistleblowing Directive aims to create a single comprehensive protection standard across the European Union, bringing an end to the patchwork system that previously existed.

Conclusion

Despite delays, Belgium has shown its commitment to implementing strong whistleblower protections, going above and beyond the requirements of the EU Whistleblowing Directive. With the transposition process now complete, companies operating in Belgium can expect significant changes to their internal reporting systems and protocols.