Swedish Companies Must Implement Stronger Whistleblower Protection Measures
Sweden has become the second EU member state to implement the 2019 EU Whistleblowing Directive into national law, following Denmark’s lead. The directive aimed at strengthening whistleblower protection frameworks across the European Union.
Implementation Process in Sweden
The implementation process in Sweden began early, with the government launching an inquiry commission in May 2019 to gauge how the EU Whistleblowing Directive should be transposed into national law. The commission delivered a 802-page report in June 2020 containing proposals for implementation and replacement of the existing Whistleblower Act.
New Bill and Timeline
The new bill, “genomförande av visselblåsardirektivet” or “implementation of the Whistleblowing Directive,” entered Sweden’s parliament on May 20, 2021, and was approved at the end of September. The law came into force on December 17, 2021, requiring Swedish companies to implement internal reporting channels by July 17, 2022.
Stronger Protection for Whistleblowers
The new whistleblowing law in Sweden goes beyond what is outlined in the EU Whistleblowing Directive, providing stronger protection for whistleblowers and a broader scope of coverage. For instance:
- Municipalities with less than 10,000 inhabitants are required to implement internal reporting channels, whereas the EU Directive only requires it above a population of 10,000.
- The law provides stronger protection for whistleblowers, ensuring they cannot be dismissed or retaliated against for reporting wrongdoing in their workplace.
Government’s Commitment
Employment Minister Eva Nordmark has emphasized the government’s commitment to improving whistleblower protection in Sweden, stating that “people should not have to fear dismissal or being locked in a freezer for reporting wrongdoing in their workplace.”
International Praise
A recent report from Transparency International and Whistleblowing Network International praised Sweden’s transparent and inclusive transposition progress, particularly its early implementation of the Directive.
Impact on Financial Services Sector
Sweden’s stride towards stronger whistleblower protection is significant, especially within the financial services sector. As Employment Minister Nordmark noted, “we should not have silent workplaces where problems are swept under the carpet.”
Conclusion
Sweden’s commitment to implementing stronger whistleblower protection measures sets a positive example for other EU member states to follow. The new law will provide a safer and more effective way for whistleblowers to report wrongdoing in their workplace, ultimately contributing to a cleaner and more transparent business environment.