New Swedish whistleblower law: EQS Group welcomes comprehensive protection for whistleblowers

New Swedish whistleblower law: EQS Group welcomes comprehensive protection for whistleblowers

• National whistleblower law came into effect on 17 July 2022
• New regulations cover both EU law and national cases
• All private and public sector employers with 250 employees or more are required to implement a whistleblowing system while smaller organizations with between 50 and 249 employees have been given until December 2023 to complete the process

While Sweden did have dedicated whistleblower legislation in place before it transposed the EU Whistleblowing Directive, it was criticized for numerous shortcomings such as a failure to guarantee anonymity and a heightened risk of individuals becoming exposed. That led to early interest in the EU Directive and new legislation was approved in the form of the “Genomförande av visselblåsardirektivet” in September 2021. 

Sweden was among the few EU Member States to act early and the new measures came into force on 17 December 2021. Companies with 250 employees or more were then given until 17 July 2022 to implement internal reporting channels.  “After Denmark, Sweden was the second EU member state to transpose the EU Whistleblowing Directive and the new law is exemplary. It rectifies the weaknesses of the previous legislation and strengthens the country’s whistleblower protection framework. This is an important step towards more integrity in public life, regardless of whether we are referring to the private sector or public institutions”, states Achim Weick, founder and CEO of EQS Group.

 

Companies in the private sector must set up reporting channels

The new directive is broadly aimed at extending protection for whistleblowers, ensuring those reporting wrongdoing in Sweden and the EU are protected, shifts the burden of proof to employers, expands the definition of those protected and creates stricter internal reporting procedures. In addition, it sets new standards for processing personal data and dealing with professional confidentiality. All companies with 250 employees or more now have to have secure reporting channels in place to comply with the new legal landscape in Sweden.

The most important aspects of the new law

• Internal reporting channels must be provided for employees, voluntary workers, interns, subcontractors, entrepreneurs, members of the board and shareholders
• Companies must take steps to inform staff about their whistleblowing channel(s)
• Employees must have the possibility to report wrongdoing in written and oral form
• Confirmation of a report must be provided within 7 days while feedback has to be given within 3 months
• Personal information can be stored for a maximum of two years while personal information irrelevant to the case must be removed
• Damages and compensation can be provided to affected persons
• All municipalities in Sweden fall under the scope of the law, even if they have a population of less than 10,000

 

“Whistleblowing Report 2021”: Great need to catch up in Europe

The “Whistleblowing Report 2021”, an international study conducted by the University of Applied Sciences Graubünden in cooperation with EQS Group, shows that there is still a lot of catching up to do in Europe. In 2020, only one in 10 companies fully compiled with the requirements of the EU Whistleblower Directive and almost half of the companies surveyed in Germany, France, the UK and Switzerland were not prepared at all. The importance of a functioning reporting system that effectively helps to identify wrongdoing and risks is shown by the fact that around one in three companies surveyed had been affected by illegal or unethical behavior at least once and exposed to immense reputational risks as a result.

Digital whistleblowing systems are best practice for preserving anonymity and reliability

Digital whistleblower systems have established themselves as best practice because they alone fulfill all the requirements of Sweden’s new law, featuring secure, anonymous and GDPR-compliant communication. “The inhibition threshold for whistleblowers is very high, especially before they make their first report, which is why companies and authorities should rely on digital systems that comprehensively protect the identity of people speaking up. These can be implemented and operated with little effort”, explains Ulrik Tønnesen who leads EQS Group’s Nordics office.

 

About EQS Group:  

EQS Group (www.eqs.com) is a leading international provider of regulatory technology (RegTech) in the fields of corporate compliance, investor relations and sustainability reporting (ESG tech). In working with EQS Group, thousands of companies worldwide inspire trust by fulfilling complex national and international disclosure obligations, minimising risks and communicating transparently with stakeholders.  

EQS Group’s products are pooled in the cloud-based software EQS COCKPIT. They ensure the professional control of compliance workflows in the fields of whistleblower protection and case management, policy management, insider list management and disclosure obligations. In addition, listed companies benefit from a global newswire, investor targeting and contact management, IR websites, digital reports and webcasts for efficient and secure investor communications.  

EQS Group was founded by Achim Weick in 2000 in Munich, Germany. Today the group employs more than 600 professionals and has offices in the world’s key financial markets.   

 

Local contact:

 

Ulrik Tønnesen

Country Manager, Nordics

ulrik.tonnesen@eqs.com

 

EQS Group A/S

Bag Elefanterne 1, 1.th

1799 København V

Denmark

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Press contact:

EQS Group | Ulrike Dittmar | Ulrike.dittmar@eqs.com