The Whistleblower Protection Act is about to take effect

The Whistleblower Protection Act will take effect as early as August 1, 2023.

WHISTLEBLOWER PROTECTION ACT

The Whistleblower Protection Act will come into force on 1 August 2023.

The purpose of the Act is primarily to protect employees (whistleblowers) from retaliation by employers when employees report specified serious violations.

Again, below is a summary of the highlights of what the Act entails:

Protection will be provided, for example, to employees who make a report of a possible violation that has occurred or is about to occur at their employer and that has the characteristics of a felony, a misdemeanor, for which the fine cap is at least CZK 100,000, or that violates the Whistleblower Protection Act or legislation in specified areas.

Whistleblowers and other persons will be protected from retaliation (e.g. termination of employment, reduction of pay, change of working hours, etc.).

Anonymous whistleblowers will not be protected.

Employers with at least 50 employees will be required to implement an internal whistleblowing system.

• Employers with 50 to 249 employees will be required to implement the system by 15 December 2023.
• Employers with 250 or more employees will be required to have a system in place by the time the law takes effect, August 1, 2023.

Please note that central notification systems (e.g. at group level) require revision.

In particular, the person subjected to retaliation will be entitled to appropriate compensation.

A fine of up to CZK 400,000 / CZK 1,000,000 will be imposed for breach of duty.

Reversal of the burden of proof in litigation - it will be necessary to prove that the whistleblower was not subjected to retaliation.