ARTICLE
8 May 2018

European Commission Proposes Protective Legislation For Whistleblowers Reporting EU Law Breaches

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A&O Shearman

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On April 23, 2018, the European Commission published a proposal for a Directive on the protection of persons reporting on breaches of Union law.
European Union Employment and HR

 On April 23, 2018, the European Commission published a proposal for a Directive on the protection of persons reporting on breaches of Union law. Whistleblowers help prevent damage and detect threat or harm to the public interest that may otherwise remain hidden, but fear of retaliation can often discourage them from reporting concerns.

The importance of providing effective whistleblower protections for safeguarding the public interest has been acknowledged both at European and international level. At EU level, whistleblower protections are currently provided only for specific sectors and to varying degrees. This means that, in many situations, whistleblowers are not properly protected against retaliation. The proposed Directive will address this fragmentation by encompassing "the broadest possible range of categories of persons, who, by virtue of work-related activities (irrespective of the nature of these activities and whether they are paid or not), have privileged access to information about breaches." Areas covered include financial services, money laundering and terrorist financing.

The Directive introduces an obligation for Member States to ensure that legal entities in the private and public sectors establish appropriate internal reporting channels and procedures for receiving and following up on reports. In addition, the Directive requires Member States to ensure that national regulators have in place external reporting channels and procedures for receiving and following up on reports and sets out the minimum standards applicable to such channels and procedures. The Directive also establishes minimum standards for the protection of reporting persons and of persons concerned by the reports.

Alongside the proposed Directive, the Commission has published a Communication, "Strengthening whistleblower protection at EU level," addressed to the European Parliament, the Council and the European Economic and Social Committee. In the Communication, the Commission states that robust whistleblower protection at the EU level will strengthen enforcement of EU law and protect freedom of expression, will better protect the EU's financial interests and will contribute to a fair and well-functioning single market.

The Commission invites public feedback on the proposed Directive via the consultation website. Comments are invited by June 22, 2018. This feedback period may be extended. The proposed Directive will now be considered by the Council of the European Union and the European Parliament and, once agreed by the co- legislators, will enter into force 20 days following its publication in the Official journal of the European Union.

The proposed Directive is available at: https://ec.europa.eu/info/sites/info/files/placeholder_8.pdf, the consultation website is available at: https://ec.europa.eu/info/law/better-regulation/initiatives/com-2018-218/feedback/add_en  and the Commission Communication is available at: https://ec.europa.eu/info/sites/info/files/placeholder_10.pdf.

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