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Romania’s Turbulent Journey to Whistleblower Protection: A Step Closer to Compliance

BUCHAREST, ROMANIA - After months of controversy, Romania has finally implemented a comprehensive whistleblower protection law, aligning with the EU’s Whistleblower Directive. However, the journey was marked by criticism and amendments, raising questions about the effectiveness of the new legislation.

A Bumpy Road to Compliance

In June 2022, Romania passed Law 361/2022, but it was met with concerns over its flaws and non-compliance with the directive. The law was later revised in December 2022, addressing some of the issues, but still facing criticism from civil society and the European Commission.

The latest amendments, introduced in March 2023, have brought Romania’s whistleblower protection law closer to compliance with EU standards. However, experts are still analyzing the legislation, pointing out areas that require further improvement.

Romania’s Whistleblower Protection Law: Scope of Application

The new law obliges entities with over 50 employees to establish internal reporting channels and protection systems for whistleblowers. This includes:

  • Legal entities in the financial sector
  • Those involved in money laundering or terrorist financing
  • Transport and environmental security companies

Companies with between 50 and 249 employees are allowed to share resources and internal reporting channels. In contrast, public entities must set up secure reporting systems regardless of their employee count.

Deadlines and Sanctions

Romanian companies were required to implement internal whistleblowing channels by December 17, 2023. Failure to comply can result in fines ranging from 3,000 to 40,000 lei (approximately $650-$8,700 USD).

Anonymous Reporting

The law allows for anonymous reporting but does not encourage it. Organizations are obliged to analyze reports containing the minimum level of information. Anonymous whistleblowers will have the same legal protection as named whistleblowers.

Other Key Aspects

  • Whistleblowers have the right to be represented in disciplinary investigations by a lawyer appointed free of charge by the Romanian Bar Association.
  • They can also submit reports to external entities, including public authorities and institutions like the National Integrity Agency (ANI).

Conclusion

While Romania’s journey to whistleblower protection has been turbulent, the new law represents a step towards compliance with EU standards. However, experts will continue to monitor its implementation, ensuring that the legislation effectively protects whistleblowers while preventing retaliation against them.

For more information on whistleblower protection laws in Romania and other EU countries, please visit our website.