Czech Republic: Whistleblowing
In February 2019, the Czech Republic’s Ministry of Justice introduced proposed legislation designed to equip whistleblowers with mechanisms for reporting workplace misconduct while shielding them from retaliation. The framework establishes fresh obligations for numerous employers.
The legislation aims to safeguard employees who disclose illegal conduct related to their employment. Protections extend exclusively to those reporting criminal activities and violations, excluding internal policy or ethics code breaches, though employers remain prohibited from arbitrary punishment.
NEW DUTIES FOR EMPLOYERS
Companies meeting specific criteria must establish internal reporting systems. These include organizations with: more than 50 employees (including part-time staff), annual turnover or balance sheet totals surpassing EUR 10 million, status as entities under Czech anti-money laundering regulations, or designation as public procurement contracting authorities.
Internal systems must establish submission protocols and whistleblower safeguards, including confidentiality measures and investigation procedures. Employers must designate qualified, independent personnel to receive and manage reports while maintaining confidentiality.
Organizations must publicize internal mechanism details through websites, intranets, or physical locations accessible to all staff. They must investigate submitted reports and implement corrective measures when necessary, retaining records for three years.
ALTERNATIVES
Employees unable or unwilling to use internal channels may report directly to law enforcement and offense authorities. A new Whistleblowing Protection Agency, operating under the Ministry of Justice, will provide guidance and receive complaints.
The legislation prohibits retaliation, preventing employers from dismissing whistleblowers, denying promotions, reducing compensation, or discriminating against reporters or their associates.
THOUGHTS
Implementation was anticipated for January 1, 2021, pending legislative approval. Organizations should proactively develop internal reporting procedures to identify and mitigate workplace misconduct risks.