Financial Crime World

Denmark Introduces Strongest Whistleblower Protection Laws in the European Union

Copenhagen, Denmark - In a landmark move, Denmark has become the first EU country to implement the 2019 EU Whistleblowing Directive into national law, introducing the strongest whistleblower protection laws in the European Union. The new Whistleblower Protection Act, known as “Lov om beskyttelse af whistleblowere”, requires all employers with more than 50 employees to set up a whistleblowing hotline and provides considerable protections for whistleblowers.

Key Requirements

  • Private sector employers with 250 employees or more, as well as public sector employers, are required to implement a whistleblowing hotline by December 17, 2021.
  • Companies with between 50 and 249 employees have until December 17, 2023, to fulfill this obligation.
  • The Act allows larger companies with 250 employees or more operating under a parent company to set up a joint Group scheme.

Hotline Requirements

  • Ability to handle confidentiality
  • Possibility to report in writing or orally
  • Provision of detailed feedback within three months

Protected Reports

  • Breaches of EU law
  • Danish national law
  • Infringements of a serious nature, such as:
    • Bribery
    • Corruption
    • Sexual harassment

Protection for Whistleblowers

  • Protection from retaliation
  • Employers must prove that any unfavourable treatment suffered by the whistleblower was not related to the report.

External Reporting Option

  • External parties, including business partners and suppliers, can make reports through an external hotline established by the Data Protection Authority.

Quote

“Denmark’s new Whistleblower Protection Act sets a high standard for whistleblower protection in the European Union. It is essential that companies understand their obligations under this law and take steps to ensure a safe and effective reporting process.” - Ulrik, Country Manager Nordics at EQS Group

Implementation and Impact

  • The implementation of the EU Whistleblowing Directive has been praised by whistleblowers’ rights advocates.
  • Denmark’s new Whistleblower Protection Act sends a strong signal that the country is committed to protecting whistleblowers and promoting transparency and accountability in corporate governance.
  • Denmark’s Data Protection Authority is establishing an external hotline for handling reports related to infringements of EU law.
  • The authority has also launched a public awareness campaign to inform citizens about their right to report wrongdoing anonymously.