Financial Crime World

France Introduces Tougher Whistleblower Protection Laws

In an effort to encourage employees to report wrongdoing without fear of retaliation, France has introduced the Sapin II Law, which provides robust protections for whistleblowers. This law aims to create a safe and supportive environment where employees feel comfortable speaking out against unethical behavior.

Key Provisions of the Law

Criminal Immunity

  • Whistleblowers who breach confidentiality in good faith and proportionate to the severity of the issue will be granted criminal immunity.
  • Protection from retaliatory measures within the workplace, including dismissal, discrimination, or harassment.
  • A new legal action allows whistleblowers to bring claims in summary proceedings if they are dismissed after reporting wrongdoing.
  • Specific offenses carrying fines and imprisonment for those who attempt to silence whistleblowers or obstruct their disclosures.

Expanded Protection

The law extends protection to a wider range of workers, including:

  • Employees
  • External contingent workers (consultants and temporary staff)
  • All employees, regardless of employment contract or status, are eligible for protection under the French Labour Code

Requirements for Whistleblower Protection

To benefit from legal protection, whistleblowers must:

  • Report alleged wrongdoing in good faith
  • Identify themselves, unless the seriousness of the issue is established and sufficient factual details are provided

Definition of a Whistleblower

A whistleblower is defined as an individual who reports wrongdoing in good faith and without personal interest. The definition includes reports of:

  • Crimes
  • Serious breaches of international undertakings or French laws
  • Threats to public interest
  • Violations of company codes of conduct

Protection Against Sanctions

Whistleblowers who report wrongdoing in compliance with legal requirements are protected against:

  • Sanctions, including those related to remuneration, promotion, or training
  • Discrimination

Options for Whistleblowers in the Event of Dismissal

In the event of dismissal, whistleblowers have two options:

  • Reinstatement into their former position
  • Compensation, with a minimum of six months’ salary plus severance pay and notice

Anonymous Reports

The French data protection authority, CNIL, has clarified that anonymous reports are not encouraged but can be accepted in exceptional circumstances where the seriousness of the issue is established and sufficient factual details are provided.

Conclusion

The Sapin II Law marks a significant step forward in France’s efforts to promote whistleblowing and protect those who speak out against wrongdoing. This law provides robust protections for whistleblowers, encourages employees to report unethical behavior, and helps create a culture of transparency and accountability within the workplace.