The Whistleblower Act

What is the purpose of the Whistleblower Act?

In short, the law gives greater protection to those who raise the alarm about irregularities at their workplace. In May 2021, the government adopted a proposition for the implementation of the EU Whistleblower Directive. The Whistleblower Act, Law (2021:890) on the protection of persons reporting irregularities, subsequently came into effect on 17 December 2021. The Whistleblower Act includes provisions for the protection of whistleblowers and a requirement for organizations to have an effective whistleblower function in place. It is therefore important to keep track of exactly what applies to your organization.

Who needs a whistleblower service and by when should it be in place?

• July 17 2022: for private sector organizations with 250 or more employees and for all public sector employers (such as municipalities).
• December 17 2023: for private sector organizations with 50-249 employees.

Who is protected by the Whistleblower Act?

The legislation goes further than just protecting employees. It also includes former employees, suppliers, shareholders, volunteers, jobs applicants, the company's management executives and persons belonging to supervisory bodies. The law also protects individuals who assist or otherwise support the whistleblower. The protection prohibits obstruction of or attempting to obstruct reporting, as well as taking retaliatory action against those who report, such as dismissal or other punishment at the workplace.

What does the Whistleblower Act say about reporting?

The Whistleblower Act also includes provisions requiring organizations to have internal reporting channels and procedures for reporting and follow-up in place within the organization. This means that organizations need to have a whistleblower service that complies with the requirements of the regulations.

Law (2021:890) on the protection of persons reporting irregularities sets out these requirements, including:

• Obligation to have channels and procedures in place.
• Common channels and procedures for reporting.
• Obligation to appoint competent persons or entities.
• Documentation of channels and procedures.
• Design of channels and procedures.
• Information to be provided by the organization.
• Duty of confidentiality in public operations.

Organizations are expected to set up a systematic way to manage whistleblowing, which can be handled internally or with external support. KPMG's Whistleblower Service ensures that you comply with the law.