Penalties for Employers who Use Repression Against Whistleblowers

LAWPenalties for Employers who Use Repression Against Whistleblowers

Modern work environments are increasingly recognizing the need for effective reporting of irregularities and breaches in the realm of law and ethics. In response to these needs, regulations protecting whistleblowers, i.e., individuals reporting violations in the workplace, are emerging around the world. In Poland, this topic is gaining importance in connection with the implementation of the EU directive on the protection of whistleblowers.

The Act on the Protection of Whistleblowers in Poland comes into force on September 25, 2024. It introduces the obligation to implement procedures for reporting irregularities by employees and ensuring the protection of whistleblowers against retaliatory actions from employers. Employers must realize that any repression against individuals reporting legal violations may result in severe sanctions.

Consequences for employers repressing whistleblowers

Repression against whistleblowers, i.e., actions aimed at punishing, discriminating, or pressuring the person who reported the violation, can lead to serious legal and financial consequences for the employer.

1. Financial Penalties

Employers repressing whistleblowers can be fined. The amount of fines varies and depends on national regulations, but can reach up to hundreds of thousands of zlotys. Fines can be imposed on both the company and individuals directly responsible for applying repression.

2. Criminal Liability

In some cases, employers may incur criminal liability. If these repressions constitute a crime, e.g., mobbing, blackmail, or threats, employers may face criminal sanctions such as a fine, and in extreme cases, even imprisonment.

3. Civil Claims

Whistleblowers who fell victim to retaliatory actions have the right to pursue their claims in civil court. They can demand compensation from the employer for material and non-material losses such as job loss or mental suffering.

4. Loss of Reputation

Modern companies heavily depend on their image. Employers who violate whistleblowers’ rights not only risk legal sanctions but also expose themselves to negative media and public attention. This could discourage potential clients and employees from cooperating with the company, leading to losses in reputation.

5. Remedial Obligations

Employers who applied repression could also be obliged to repair the damage incurred to the whistleblower. This can include reinstating the whistleblower to their previous work conditions, reversing all negative effects of repression, and implementing measures to prevent similar situations in the future.

How to prevent repression against whistleblowers?

To avoid sanctions and create a safe work environment, employers should implement effective procedures for reporting irregularities. Ensuring anonymity to reporting individuals and introducing mechanisms that prevent retaliatory actions are key. It is also important to train management and employees on the protection of whistleblowers and ethics in the workplace. The application of appropriate procedures can not only protect the company from potential sanctions but also contribute to improving the work atmosphere, increasing employee loyalty, and building a positive company image.

Conclusion

Whistleblowers play a crucial role in ensuring a company’s compliance with legal regulations and ethical norms. Employers must be aware that any form of repression against these individuals can lead to serious legal and financial consequences. In the era of increasing societal awareness and legal regulations, the protection of whistleblowers is becoming not just a legal obligation but also a reflection of responsibility and modern approach to managing an organization.

Author: Legal Advisor Sylwia Werpachowska, Law Firm Chałas and Partners.

Source: https://ceo.com.pl/kary-dla-pracodawcow-stosujacych-represje-wobec-sygnalistow-34282

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