Summary of new Czech whistleblowing legislation
1. Employers' obligations and reporting channels
Introduction an internal reporting system (IRS)
• employers with 250 or more employees – by 1 August 2023
• employers with up to 249 employees – by 15 December 2023
• IRS must allow receipt of reports in verbal, written or personal form
Other obligations
• to designate a competent person and ensure that only the competent person communicates with the whistle-blowers and evaluates the reports
• publication of the prescribed information on the company webpage
• to take appropriate action to remedy or prevent the unlawful conduct
Reporting channels:
• IRS, External (Ministry of Justice), Publication (strict conditions) or Czech authorities
• selection up to the whistle-blower
2. Protected reports and persons
Any information about possible illegal conduct
• that may be criminal offence
• that may be administrative offence with a fine of at least CZK 100,000
• that violates the Czech Whistleblower Protection Act (WPA)
• that violates other legal acts or EU legislation in 14 specific areas
Reporting person/whistleblowers
• individual who has obtained the information in the context of work (internal/external)
• possibility to exclude the receipt of reports from external workers and restrict to only own employees/volunteers/interns
• prohibition of any retaliation
Other protected persons
• persons who have assisted the whistleblower
• an employee or colleague of the whistleblower
• any legal entity in which the whistleblower has an interest or holds an elected office
• the person for whom the employee works
Rights of protected persons
• compensation for damages, reversal of the burden of proof in the event of a dispute
3. Non-protected reports (not subject to new law)
• anonymous (name, surname and date of birth) – receipt of the employer’s discretion
• knowingly false / untruthful
• reports outside the material and personal scope of the new law (WPA)
4. Outsourcing / sharing of IRS
• outsourcing of IRS possible
• sharing of IRS only possible for employers with up to 249 employees
• the employer's liability is not affected
Sharing of IRS within Group (EU Commission questionable additional restrictions)
• requirement for a concurrent group and internal reporting system
• possibility for the reporting person to opt out of the concern solution
5. Fines
• employers – up to CZK 400,000 or CZK 1,000,000 (depending on the gravity of the offence)
• competent persons – up to CZK 50,000 or CZK 100,000 (depending on the gravity)
• knowingly false report by the whistleblower – up to CZK 50,000
By Radek Matous, Partner, Petra Kratochvilova, Counsel, Eversheds Sutherland