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Employer Obligations Under Swiss Law: The Importance of a Whistleblowing System
Swiss law requires employers to establish a whistleblowing system that allows employees to report misconduct internally. This obligation is enshrined in Article 321a, Paragraph 4 of the Swiss Code of Obligations (CoO), which states that employees must first report misconduct to their employer before disclosing it to authorities or the public.
In practice, this means that employers must provide a confidential and secure channel for employees to report suspected wrongdoing, such as fraud, corruption, or other unethical behavior. This channel should be easily accessible and well-promoted throughout the organization.
The Board of Directors is responsible for ensuring that the whistleblowing system is effective and compliant with Swiss data protection laws. Failure to do so can result in criminal penalties, making it essential for employers to take their obligations seriously.
Why a Whistleblowing System Matters
A comprehensive whistleblowing system is crucial for several reasons:
- Employee Trust: When employees feel that their concerns are taken seriously and acted upon, they are more likely to speak up when they witness misconduct.
- Prevention of Fraud: Whistleblowing systems can help detect and prevent fraud by encouraging employees to report suspicious behavior early on.
- Protection of Reputation: By addressing issues promptly and transparently, employers can protect their reputation and avoid potential crises.
- Compliance with Swiss Law: Employers must comply with Swiss law, including data protection regulations, which requires a robust whistleblowing system.
Deloitte’s Whistleblowing Solution: Deloitte Conduct Watch
To support organizations in managing their whistleblowing caseloads, Deloitte has launched its whistleblowing solution, Deloitte Conduct Watch. This solution provides a comprehensive and secure platform for reporting and investigating suspected misconduct.
If you are a corporate executive, Board member, or General Counsel looking to establish or improve your organization’s whistleblowing system, we encourage you to contact us for further insights and guidance.
Authors
- Philipp Lüttmann, Partner, Forensic and Financial Advisory
- Arjan Hulsbos, Director, Forensic Technology