EU Whistle-Blower Directive

The harm caused by tax avoidance, money laundering, corruption or the misuse of data is substantial, yet 85% of respondents to the European Commission's 2017 public consultation expressed the view that workers very rarely report concerns about wrongdoing due to the legal and financial consequences they might face. To address this, the European Union is introducing far-reaching rules for potential whistle-blowers who might be discouraged from reporting their concerns or suspicions for fear of retaliation. It was passed in April 2019 and is expected to be adopted shortly.

Currently, the protection afforded to whistle-blowers differs greatly among Member States, with only ten EU Members having laws that provide for such protection. With the new Directive , the EU aims to set new European-wide standards. The new law will establish safe channels for reporting both within an organisation and to public authorities. It will also protect whistleblowers against dismissal, demotion and other forms of retaliation. In addition, national authorities are required to inform citizens and provide training for public authorities on how to deal with whistle-blowers under the new legislation

Areas covered by the Directive are:

Public procuremen Financial services, the prevention of money laundering and terrorist financing Product safety Transport safety Protection of the environment Nuclear safety Food and feed safety, and animal health and welfare Public health Consumer protection Protection of privacy and personal data, and security of network and information systems Breaches or avoidance of corporate tax In the UK, the Public Interest Disclosure Act 1998 ("PIDA") already provides protection for whistle-blowers from dismissal or detriment as a result of reporting a "protected disclosure", though it does not require workplaces to encourage whistleblowing. In addition, in the financial services arena, the FCA introduced, in 2017, new self-reporting and whistleblowing rules which encourage employees to speak up and challenge poor practice or unlawful behaviour within their business. UK branches of PRA-regulated banks are expected to have in place a strong framework to facilitate...