Swiss Government’s Proposed Whistleblower Protection Law Falls Short of International Standards

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Bern, Switzerland - A draft law aimed at protecting whistleblowers in the Swiss private sector has been met with criticism for its shortcomings. The proposed legislation fails to provide adequate safeguards for employees who report suspected or actual misconduct, leaving them vulnerable to retaliation and lack of protection.

Criticisms of the Proposed Law

• The draft law requires companies to establish an internal reporting mechanism, but this provision is insufficient as it does not explicitly protect whistleblowers from liability under criminal, civil, and administrative laws.
• The proposal defines whistleblower only as an employee, excluding contractors, volunteers, temporary workers, consultants, and suppliers.
• It does not consider thresholds such as private legal entities with 50 or more employees, annual turnover or balance sheet total of €10 million or more, or those operating in financial services or vulnerable to money laundering or terrorist financing.

International Standards vs. Swiss Proposal

• The EU’s draft proposal for a whistleblower protection directive places the burden of proof on the employer to demonstrate that any adverse action taken was not as a result of whistleblowing.
• In contrast, the Swiss proposal places the burden of proof on the whistleblower.

Additional Concerns

• The proposed law does not explicitly forbid and sanction retaliation against good faith reporting by employees.
• It does not penalize individuals who retaliate against whistleblowers or breach their confidentiality.
• It also does not provide for the communication of the whistleblower’s identity only with their consent and fails to ensure that feedback is provided within a reasonable timeframe.

Recommendations

The Working Group Whistleblowing at Ethics and Compliance Switzerland (ECS) has raised concerns about the proposed law, stating that it falls short of international benchmarks in several areas. The group recommends strengthening the protection of whistleblowers and ensuring that the legislation aligns with international standards.

“The Swiss government must take a more comprehensive approach to protecting whistleblowers,” said a spokesperson for ECS. “The current proposal does not provide adequate safeguards for employees who report misconduct, leaving them vulnerable to retaliation and lack of protection.”

Conclusion

The proposed law is currently being debated in the Swiss parliament, and its passage is expected soon. It is essential that the Swiss government takes a more comprehensive approach to protecting whistleblowers and ensures that the legislation aligns with international standards to provide adequate safeguards for employees who report suspected or actual misconduct.