WHISTLEBLOWING – New Czech law from 1 August 2023
21.06.2023Company: Eversheds Sutherland, advokátní kancelář, s.r.o.
1. Employers' obligations and reporting channels
Introduction an internal reporting system (IRS)
- employers with 250 or more employees – by 1 August 2023
- employers with up to 249 employees – by 15 December 2023
- IRS must allow receipt of reports in verbal, written or personal form
Other obligations
- to designate a competent person and ensure that only the competent person communicates with the whistle-blowers and evaluates the reports
- publication of the prescribed information on the company webpage
- to take appropriate action to remedy or prevent the unlawful conduct
Reporting channels:
- IRS, External (Ministry of Justice), Publication (strict conditions) or Czech authorities selection up to the whistle-blower
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2. Protected reports and persons
Any information about possible illegal conduct
- that may be criminal offence
- that may be administrative offence with a fine of at least CZK 100,000
- that violates the Czech Whistleblower Protection Act (WPA)
- that violates other legal acts or EU legislation in 14 specific areas
Reporting person/whistleblowers
- individual who has obtained the information in the context of work (internal/external)
- possibility to exclude the receipt of reports from external workers and restrict to only own employees/volunteers/interns
- prohibition of any retaliation
Other protected persons
- persons who have assisted the whistleblower
- an employee or colleague of the whistleblower
- any legal entity in which the whistleblower has an interest or holds an elected office
- the person for whom the employee works
Rights of protected persons
- compensation for damages, reversal of the burden of proof in the event of a dispute
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3. Non-protected reports (not subject to new law)
- anonymous (name, surname and date of birth) – receipt of the employer’s discretion
- knowingly false / untruthful
- reports outside the material and personal scope of the new law (WPA)
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4. Outsourcing / sharing of IRS
- outsourcing of IRS possible
- sharing of IRS only possible for employers with up to 249 employees
- the employer's liability is not affected
Sharing of IRS within Group (EU Commission questionable additional restrictions)
- requirement for a concurrent group and internal reporting system
- possibility for the reporting person to opt out of the concern solution
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5. Fines
- employers – up to CZK 400,000 or CZK 1,000,000 (depending on the gravity of the offence)
- competent persons – up to CZK 50,000 or CZK 100,000 (depending on the gravity)
- knowingly false report by the whistleblower – up to CZK 50,000
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For more information contact our partner Radek Matouš or counsel Petra Kratochvílová.
Tags: Law |
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