EU Whistleblowing Directive - Compliance Guide

Complete EU Directive 2019/1937 compliance guide. 7-day acknowledgment, 3-month feedback, anonymous reporting, confidentiality protection, and anti-retaliation measures.

EU Whistleblowing Directive Compliance

How Disclosurely helps you comply with EU Directive 2019/1937 on the protection of whistleblowers.

Overview

The EU Whistleblowing Directive (2019/1937) establishes minimum standards for whistleblower protection across all EU member states. All member states were required to transpose the Directive into national law by December 17, 2021.

Disclosurely is built for full compliance with the Directive's requirements.

Who Must Comply

Covered Organizations

Private Sector:

50+ employees: Must establish internal reporting channels
Certain sectors: All entities regardless of size
- Financial services
- Prevention of money laundering and terrorist financing
- Transport safety
- Environmental protection
- Food safety
- Public health
- Consumer protection
- Privacy and data protection
- Network and information security

Public Sector:

All public authorities and institutions
Regardless of size
Includes local, regional, and national levels

Transition Period:

Organizations with 50-249 employees: 2-year grace period (until December 17, 2023)
Organizations with 250+ employees: Immediate compliance required

Member State Implementation

Each EU member state has implemented the Directive through national legislation:

Ireland: Protected Disclosures (Amendment) Act 2022
Germany: Hinweisgeberschutzgesetz (HinSchG)
France: Law No. 2022-401 (Loi Waserman)
Spain: Law 2/2023
Italy: Legislative Decree No. 24/2023
Netherlands: House for Whistleblowers Act (Wet bescherming klokkenluiders)
And others: Check your jurisdiction

Important: While the Directive sets minimum standards, member states may have additional or stricter requirements.

Key Requirements

1. Internal Reporting Channels

Article 8 - Obligation to Establish Internal Reporting Channels

Requirements:

Secure channels for receiving reports
Anonymous reporting option recommended
Clear procedures for handling reports
Information provided to employees about channels

Disclosurely Compliance:

✅ Secure web-based reporting portal
✅ Anonymous reporting via tracking ID
✅ Confidential reporting with identity protection
✅ Military-grade AES-256 encryption
✅ Customizable reporting forms
✅ Information pages for reporters

Setup:

Configure reporting portal
Enable anonymous reporting
Customize branding (optional)
Set up custom domain
Add information about reporting process
Publish portal URL to employees

2. Acknowledgment of Receipt

Article 9(1)(b) - Diligent Follow-Up

Requirement: Acknowledge receipt of report within 7 days

Disclosurely Compliance:

✅ Automatic acknowledgment email sent immediately upon submission
✅ Timestamp recorded in audit trail
✅ Reporter receives confirmation with tracking ID
✅ No manual action required
✅ Compliance tracking dashboard

What Reporters Receive:

Immediate confirmation of submission
Unique tracking ID for follow-up
Expected timeline for investigation
How to send additional information
Contact for questions

Monitoring Compliance:

Dashboard shows all acknowledgments sent
Filter cases by acknowledgment date
Alerts if acknowledgment delayed (system issue)
Audit trail proves compliance

3. Feedback to Reporter

Article 9(1)(f) - Providing Feedback

Requirement: Provide feedback on investigation outcome within 3 months (extendable to 6 months for complex cases)

Disclosurely Compliance:

✅ Secure messaging system for communication
✅ Case status updates
✅ Investigation outcome notification
✅ Timeline tracking with alerts
✅ Automated compliance monitoring

Timeline Management:

Case created → 3-month timer starts
Alerts at 60 days, 75 days, 85 days
Extend to 6 months if needed (document reason)
Provide feedback before deadline
Audit trail documents compliance

Feedback Content:

Whether allegations substantiated
General actions taken (not specific discipline)
Changes implemented to prevent recurrence
Appreciation for reporting

What NOT to Share:

Specific disciplinary actions
Subject's employment status
Confidential investigation details
Other employees' information

4. Impartial Person Responsible

Article 8(7) - Designated Person or Department

Requirement: Designate impartial person or department to handle reports

Disclosurely Compliance:

✅ Role-based access controls
✅ Team management
✅ Assignment workflows
✅ Conflict of interest tracking
✅ Segregation of duties

Best Practices:

Designate compliance officer or team
Provide training on investigation procedures
Ensure independence from subjects
Document conflicts of interest
Rotate assignments if needed

In Disclosurely:

Create "Compliance Team" or designated role
Assign investigations to impartial investigators
Document impartiality
Flag conflicts of interest
Re-assign if conflict discovered

5. Confidentiality Protection

Article 16 - Protection of Identity

Requirement: Protect confidentiality of reporter's identity

Disclosurely Compliance:

✅ Anonymous reporting option (no identity collected)
✅ Confidential reporting (identity encrypted)
✅ Zero-knowledge architecture
✅ Role-based access to identity information
✅ Audit trail of identity access
✅ Confidentiality reminders throughout interface

Technical Protections:

AES-256 encryption
Identity stored separately from report
Access logged in audit trail
Only authorized users can see identity
Cannot be disclosed without authorization

Procedural Protections:

Confidentiality policies
Staff training
Non-disclosure agreements
Disciplinary consequences for breaches
Limited "need to know" access

Exceptions (when identity may be disclosed):

Legal obligation (court order)
Necessary for investigation (with consent)
Subject's right to defense (subject may infer)

6. Data Protection

Article 17 - Processing of Personal Data

Requirement: Comply with GDPR when processing personal data

Disclosurely Compliance:

✅ GDPR-compliant data processing
✅ Data minimization
✅ Purpose limitation
✅ Retention policies
✅ Data subject rights support
✅ Data processing agreements

See: GDPR Compliance for detailed information

Key Points:

Process only necessary data
Retain only as long as needed
Secure storage and transmission
Support data subject access requests
Document legal basis for processing

7. Record Keeping

Article 18 - Maintenance of Records

Requirement: Maintain records of reports and follow-up actions

Disclosurely Compliance:

✅ Complete case records
✅ Tamper-evident audit trail
✅ Evidence management
✅ Status tracking
✅ Investigation documentation
✅ Long-term retention and archiving

What's Recorded:

Report submission date and time
Acknowledgment sent
Investigation activities
Status changes
Communications with reporter
Investigation outcome
Actions taken
Feedback provided

Audit Trail:

Hash chain integrity
Cannot be altered
Proves compliance with timelines
Available for regulatory inspection
Retained per retention policy

8. Information and Training

Article 8(6) & Recital 55 - Information About Channels

Requirement: Provide clear, accessible information about internal reporting channels

Disclosurely Compliance:

✅ Customizable information pages
✅ Reporting procedures documented
✅ Multi-language support
✅ Accessible design
✅ Clear explanations of process

What to Communicate:

How to submit a report
Anonymous vs. confidential options
What information to include
Timeline expectations
Protection from retaliation
Follow-up process
External reporting options

Communication Methods:

Employee handbook
Intranet/internal website
Email announcements
Training sessions
Posters in workplace
Onboarding for new employees

9. Prohibition of Retaliation

Articles 19-22 - Protection from Retaliation

Requirement: Prohibit and prevent retaliation against whistleblowers

Types of Retaliation Prohibited:

Suspension, dismissal, demotion
Withholding promotion or training
Negative performance evaluations
Coercion, intimidation, harassment
Discrimination
Unfavorable treatment
Damage to reputation

Disclosurely Features:

✅ Anonymous reporting prevents identification
✅ Confidential reporting protects identity
✅ Retaliation flagging
✅ Monitoring capability
✅ Documentation of protections

Organizational Measures:

Written anti-retaliation policy
Training for managers
Monitoring for retaliation signs
Separate retaliation reporting channel
Swift investigation of retaliation claims
Disciplinary action for retaliators
Remedies for affected reporters

Burden of Proof:

Directive shifts burden to employer
Employer must prove adverse action was not retaliation
Protects reporters from having to prove retaliation

Compliance Checklist

Initial Setup

✅ Establish internal reporting channel (Disclosurely portal) ✅ Enable anonymous reporting option ✅ Designate impartial person/team to handle reports ✅ Configure automatic acknowledgment ✅ Set up case assignment workflows ✅ Configure timeline alerts (7 days, 3 months) ✅ Create feedback templates ✅ Customize information pages for reporters ✅ Set up encryption and access controls ✅ Configure audit trail ✅ Establish data retention policies ✅ Create GDPR-compliant processing records

Policy and Procedures

✅ Draft whistleblowing policy ✅ Document investigation procedures ✅ Create anti-retaliation policy ✅ Establish confidentiality protocols ✅ Define escalation procedures ✅ Set retention and deletion policies ✅ Document GDPR compliance measures

Communication and Training

✅ Communicate reporting channels to all employees ✅ Provide information on reporting process ✅ Train designated personnel on investigation procedures ✅ Train managers on anti-retaliation ✅ Include in employee handbook ✅ Include in new employee onboarding ✅ Periodic reminders to staff

Ongoing Compliance

✅ Acknowledge reports within 7 days (automatic) ✅ Provide feedback within 3 months (or 6 if extended) ✅ Maintain confidentiality ✅ Document all investigation activities ✅ Protect against retaliation ✅ Maintain audit trail ✅ Conduct regular compliance reviews ✅ Update procedures as needed ✅ Respond to data subject requests ✅ Cooperate with authorities

Monitoring Compliance

Compliance Dashboard

Disclosurely Provides:

Acknowledgment Compliance:

All reports acknowledged within 7 days
Late acknowledgments flagged (if system issue)
100% compliance rate typical (automatic)

Feedback Compliance:

Cases approaching 3-month deadline
Cases past 3-month deadline (alert)
Cases extended to 6 months
Compliance rate by month
Average feedback time

Overall Metrics:

Total reports received
Reports acknowledged timely
Feedback provided timely
Average investigation time
Compliance rate (%)

Access Dashboard:

Dashboard > Compliance > EU Directive
View compliance metrics
Filter by date range
Export reports
Address any compliance gaps

Alerts and Reminders

Automatic Alerts:

7-Day Acknowledgment:

Acknowledgment sent automatically
Alert only if system failure (rare)

3-Month Feedback:

60 days: First reminder
75 days: Second reminder
85 days: Urgent reminder
90 days: Overdue alert

Recipients:

Assigned investigator
Compliance officer
Case handler
Administrator

Actions:

Provide feedback to reporter
Extend to 6 months (document reason)
Escalate case if stuck

Reporting

Generate Compliance Reports:

Dashboard > Reports > Compliance
Select "EU Directive Compliance Report"
Choose date range
Include:
- Total reports
- Acknowledgment compliance
- Feedback compliance
- Average timelines
- Compliance rate
Export PDF or CSV

Use For:

Board reporting
Compliance committee meetings
Internal audits
External audits
Regulatory inquiries
Annual reviews

External Reporting Channels

When Whistleblowers May Go External

Article 10 - External Reporting Channels

Reporters may go directly to authorities if:

No internal channels available
Internal channels not functioning properly
Reasonable belief that retaliation will occur
Reasonable belief that breach may constitute imminent or manifest danger to public interest
Reasonable belief that investigation won't be handled appropriately
Previous internal report not followed up

Implication: Organizations should ensure internal channels are effective to encourage internal reporting first.

Competent Authorities

Each member state must designate authorities to receive external reports:

Examples:

Financial regulators
Data protection authorities
Environmental agencies
Health and safety authorities
Anti-corruption bodies

Your Responsibility:

Inform employees about external reporting options
Provide contact information for relevant authorities
Include in whistleblowing policy
Do not discourage external reporting

In Disclosurely:

Customize information pages to include external channels
Provide links to national authorities
Explain when external reporting appropriate
Demonstrate internal channels are effective

Member State Variations

Check Your Jurisdiction

While the Directive sets minimums, member states may:

Extend protection to more categories of workers
Lower the 50-employee threshold
Add reporting channel requirements
Impose stricter timelines
Require additional measures
Impose penalties for non-compliance

Examples of Variations:

Germany (HinSchG):

Requires external "ombudsperson" option for some organizations
Stricter penalties for non-compliance
Specific requirements for verbal reporting

France (Loi Waserman):

Applies to all organizations with 50+ employees (no sector exceptions)
Specific requirements for report handling
Integration with existing alert systems

Spain (Law 2/2023):

Detailed requirements for investigation procedures
Specific timeline for initiating investigation
Obligation to inform reporter of investigation start

Netherlands (House for Whistleblowers Act):

Strong focus on external authority
Specific investigation requirements
Integration with existing whistleblower infrastructure

Consult Local Counsel

Important: This documentation provides general guidance on the EU Directive. Always consult local employment and compliance counsel to ensure full compliance with your member state's specific implementation.

Penalties for Non-Compliance

Member State Penalties

Each member state establishes penalties for:

Failure to establish internal channels
Breaching confidentiality
Retaliating against whistleblowers
Obstructing reporting
Not following up on reports

Examples:

Fines (amounts vary by member state)
Criminal penalties in some jurisdictions
Personal liability for managers
Injunctions to establish channels
Reputational damage

Consequences

Beyond Regulatory Penalties:

Damage to reputation
Loss of employee trust
Litigation from whistleblowers
Employment tribunal claims
Regulatory investigations
Media attention
Investor concerns

Best Practice: Proactive compliance is far less costly than reactive remediation.

Best Practices

Go Beyond Minimum Requirements

Recommended:

Encourage speak-up culture
Multiple reporting channels (in addition to Disclosurely)
Train all employees, not just investigators
Regular communication about channels
Anonymous reporting as default option
Faster timelines than required
Comprehensive anti-retaliation measures

Regular Reviews

Quarterly:

Review compliance metrics
Address any overdue feedback
Check acknowledgment compliance
Assess reporter satisfaction
Update procedures if needed

Annually:

Comprehensive policy review
Regulatory changes check
Training effectiveness assessment
Communicate with employees
Board reporting
External audit preparation

Document Everything

Maintain Records of:

Whistleblowing policy
Procedures and workflows
Training provided
Communications to employees
Compliance reports
Policy reviews and updates
Regulatory consultations

Demonstrates:

Good faith compliance effort
Proactive approach
Continuous improvement
Accountability

Culture of Speaking Up

Beyond Compliance:

Leadership commitment
Speak-up encouragement
No tolerance for retaliation
Recognition for reporters (appropriately)
Learning from reports
Continuous improvement
Transparency about outcomes (aggregated)

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