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Sweden Passes Whistleblower Protection Act, Expanding Protections for Employee and Consultant Whistleblowers
Sweden has taken a significant step towards strengthening whistleblower protections across the country with the passage of its new Whistleblowing Act, effective September 29, 2021. The legislation marks a milestone in the country’s efforts to transpose the EU Whistleblower Protection Directive into national law.
What’s New?
Prior to this act, whistleblowing legislation had been in place in Sweden since 2016, but it was limited to cases where an employee or consultant reported serious misconduct by a key person within the business. The new act expands the scope of protection to include reports of:
- Serious violations of Swedish law
- Other serious misconduct
Who Does It Apply To?
The Whistleblowing Act applies to:
- Private sector employers with 250 employees or more, which must implement a whistleblowing scheme by July 17, 2022
- Public sector employers, which must implement a whistleblowing scheme by the same date
- Private sector companies with between 50 and 249 employees, which have until December 17, 2023, to comply
What Do Companies Need To Do?
Companies within larger group structures can continue using joint whistleblowing schemes, but individual entities with 50 employees or more must implement their own internal systems for internal reports. These internal systems can be shared with other group entities with fewer than 250 employees, but those with 250 or more employees cannot share their systems with others.
Additionally, employers in Sweden should take note of the act’s new requirements, including:
- Providing protection for whistleblowers who first raise concerns externally before making them public
- Ensuring all necessary policies, guidelines, and procedures are in place to comply with the act
- Ensuring easy access to information on how to make a report
What About Collective Bargaining Agreements?
The scope of protection can be extended through collective bargaining agreements, but any agreed limitations cannot reduce the minimum level of protection afforded under the law.
Data Privacy Regulations
Companies outsourcing whistleblowing systems to third parties must also consider data privacy regulations, particularly in relation to data processors.
Conclusion
As Sweden takes another step towards strengthening whistleblower protections, employers and employees alike should be aware of their responsibilities and obligations under the new act.