From September 25, regulations of the law on whistleblower protection, signed in June by the president, come into effect. Initially, companies employing at least 50 workers are obliged to implement internal reporting procedures, ensuring not only anonymity for the whistleblower but also protection against retaliatory actions. In the case of failure to implement these procedures or applying them incorrectly, the person responsible could be fined. The law also carries financial penalties and prison sentences for violating whistleblower protections.
“The whistleblower protection law provides for the reporting of irregularities by employees, temporary staff, volunteers, interns, but also individuals under civil law contracts with the company. Also included in this group are procurators, employees of contractors, subcontractors, and counterparties.Complaints can also be made by applicants and those already outside the organization,” explains Dr. Beata Baran-Wesołowska, Partner at the Baran Książek Bigaj Law Firm and Associate Professor at Jagiellonian University.
From September 25, 2024, the obligation to implement internal reporting procedures will apply to all legal entities, with at least 50 individuals being contract workers by January 1 or July 1 of that year. However, this does not apply to entities engaged in financial services, products, markets, anti-money laundering, counter-terrorism financing, transport safety, and environmental protection – in such cases, the procedure must be established regardless of the number of employees.
Whistleblower protection means a prohibition on retaliatory actions such as termination of employment, harassment, discrimination, blocking career progression, or access to training, as well as sanctions or financial penalties imposed on the whistleblower.
When implementing these internal reporting procedures, it is necessary to designate the appropriate entity to handle the reports, which can be submitted verbally or in writing, or in both formats. Electronic channels are possible for written reports, and phone messages should be documented via call recording or complete and accurate transcription of the conversation.
The benefits of implementing these internal reporting systems are primarily the possibility of learning in advance about any undesirable events taking place in the organization and stopping such procedures or swiftly taking actions to curb them.
The Whistleblower Protection Act provides criminal penalties for non-implementation of procedures, their malfunctioning, revealing the identity of a whistleblower, or taking retaliatory action. Preventing or obstructing a whistleblower from reporting will result in a fine, restriction of liberty, or imprisonment of up to one year, while taking retaliatory action against a whistleblower, a person linked to them or assisting in making the report can lead to imprisonment of up to three years. The act stipulates fines, restrictions of liberty, or imprisonment of up to a year if the identity of a whistleblower, or someone linked or assisting in the report is revealed. The act also punishes making false reports as a whistleblower by imposing fines, restrictions of liberty or imprisonment of up to two years.
“For lack of irregularity reporting systems, sanctions do not threaten the organizations themselves but are linked with criminal liability, which in Poland assumes an individual character, i.e., a physical person may be held accountable,” draws attention Dr. Beata Baran-Wesołowska. “For non-implementation or implementation with gross violations of law, the act foresees liability of an offense where the maximum upper fine, regarded as punishment for such a prohibited act, is PLN 5,000 (approximately USD 1,300).”
