Luxembourg Whistleblower Protection Laws Take Shape: Key Features Explained

Luxembourg has finally adopted a law aimed at protecting whistleblowers, bringing the country in line with European Union regulations. The new legislation goes beyond the scope of the EU’s 2019 directive and provides crucial protections for individuals who report breaches of Union law.

Key Provisions

Internal Reporting Channels: Private and public sector entities must establish internal reporting channels, except for those with fewer than 50 employees. Financial-sector entities and firms vulnerable to money laundering are mandated to comply regardless of their employee count. Failure to implement these channels can result in fines of up to €250,000.
Scope of Reports: Whistleblowers can report information obtained in a professional context about illegal acts or omissions that violate national or European law. This includes various types of offenses, not just financial crimes. Those who make false reports can face fines of up to €50,000.

Protections for Whistleblowers

Eligibility: The law extends beyond internal employees to include former and prospective workers, volunteers, trainees, self-employed individuals, shareholders, contractors, subcontractors, suppliers, and even civil servants.
Confidentiality: Entities must set up comprehensive reporting mechanisms that guarantee the confidentiality of whistleblowers’ identities.
Protection from Retaliation: The law prohibits employers from taking adverse actions against whistleblowers, such as dismissals, withholding promotions or training. Those who retaliate against whistleblowers can face fines of up to €25,000.

Procedures for Managing Reports and Follow-Ups

Timeframe for Feedback: Entities must provide feedback on reported information within a specified timeframe.
Impartial Communication: The law outlines the appointment of an impartial person or department to communicate with reporting individuals.

Impact and Significance

Luxembourg’s move is a significant step towards creating a safe and secure environment for individuals to report wrongdoing without fear of retribution. As one of the last EU countries to adopt a whistleblower protection law, this development sends a clear message that transparency and accountability are valued in the Grand Duchy.