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Whistleblower Protection Laws Explained in Poland: A New Era for Corporate Accountability

Poland has taken a significant step towards promoting transparency and accountability by enacting the Whistleblower Protection Act, transposing the EU Whistleblowing Directive into national law. This new legislation aims to protect whistleblowers who report breaches of various laws and regulations.

Scope of Protected Breaches

The scope of protected breaches is broad, encompassing:

  • Corruption
  • Financial interests of the State Treasury
  • Constitutional human and civil rights
  • Violations of labor law (although the latter has been a subject of controversy)
  • “Violations of law” in general, not just EU law

Defining Whistleblowers

A whistleblower is defined as any individual who reports or makes public disclosures about illegal activities encountered in a work-related context. This includes:

  • Employees
  • Temporary workers
  • Interns
  • Volunteers
  • Others working under various contracts or arrangements

Protection from Retaliation

Whistleblowers are protected from retaliation, including:

  • Unfair treatment
  • Demotion
  • Suspension
  • Negative performance evaluations
  • Discrimination

Certification and Compensation

Under the Act, whistleblowers have the right to request certification from the competent authority to confirm their status. This ensures that they cannot be held liable for public disclosure if they acted in good faith. The law also provides for compensation in cases where a whistleblower suffers retaliatory actions.

Internal Reporting Channels

Corporate entities with at least 50 employees (excluding certain sectors) are obliged to establish internal reporting channels and procedures, which must include:

  • Designating an internal unit or person to receive reports
  • Verifying reports
  • Providing feedback to whistleblowers
  • Ensuring due diligence

The Act also permits anonymous reporting, although the corporate entity is under no obligation to handle such reports.

Outsourcing Internal Reporting

To facilitate the implementation of internal reporting procedures, the law provides a framework for outsourcing this task to external entities and allows capital groups to set up common notification procedures.

Criminal Penalties

Criminal penalties are imposed for infringements of whistleblowers’ rights, including:

  • Fines
  • Restrictions on liberty
  • Imprisonment

Persistent offenders may face up to three years in prison.

Implementation Timeline

The Act comes into force on September 25, 2024, giving corporate entities a three-month window to prepare and implement internal reporting channels.

Conclusion

This landmark legislation marks an important step towards promoting accountability and transparency in Poland, and its impact is likely to be felt across various industries and sectors.