Whistleblowing in Poland: Practical guidelines for companies operating in the Polish market

The implementation of whistleblowing procedures is not only a response to the European Parliament and Council Directive (EU) 2019/1937, but also an important part of building a culture of transparency and ethics within an organization. Whistleblowers play a crucial role in accountability within organizations by reporting illegal or unethical activities. Recognizing the importance of protecting these individuals, Poland has recently enacted the Act on the Protection of Whistleblowers (Polish Whistleblowing Act), which came into effect on September 25, 2024. This article explores the key aspects of whistleblower protection in Poland and provides practical guidelines for companies operating in the Polish market.

Scope and purpose

The Polish Whistleblowing Act requires all public and private entities with at least 50 employees to implement internal whistleblowing procedures. This number includes people working under employment contracts and those working under other legal bases, such as civil law or business-to-business contracts. Organizations with fewer than 50 employees may implement procedures on a voluntary basis. However, the above threshold does not apply to legal entities engaged in financial, transport safety, and environmental protection activities – all such entities, regardless of the number of employees, are required to have an internal whistleblowing procedure in place.

Private group companies are allowed to establish a common internal reporting process, provided that the activities carried out are in compliance with the Polish law. Such solutions can help many companies reduce paperwork and increase the efficiency of group policies. In practice, even if the group has a common global whistleblowing policy, it is recommended to adopt a country-specific annex for Polish subsidiaries – to ensure that the policy is in line with Polish regulations.

Who is a whistleblower?

Under the Polish Whistleblowing Act, a “whistleblower” is defined as any individual who reports or publicly discloses information on illegal activities within an employment context. This includes employees, temporary workers, contractors, volunteers, interns, and even shareholders and members of governing bodies. The broad definition covers a wide range of individuals who might encounter misconduct in various capacities.

Scope of reportable activities

Reports may be made about any observed or suspected violations that may occur within the organization. This includes a wide range of potential irregularities, including but not limited to: corruption and financial crime, data protection, anti-money laundering breaches, public procurement, competition violations, product safety, environmental issues, consumer protection and financial markets, and more.

Obligation of employers: Elements of the internal whistleblowing system

The elements an efficient program for whistleblowers are summarized below.

• Introducing the internal whistleblowing procedure after consultation with trade unions or employee representatives
  
  
• Designating an internal organizational unit or person within the company's organizational structure, or an external entity responsible for receiving and handling complaints – written authorizations would be granted
  
  
• Reporting channels: Clear and accessible, providing oral or written forms of submitting concerns and allowing in-person meetings with the whistleblower if requested
  
  
• Ensuring the confidentiality of the whistleblower’s identity
  
  
• Notifying whistleblowers of the receipt of their complaint within seven days and providing feedback to whistleblowers within three months
  
  
• Data protection: Rules on the protection of whistleblowers’ personal data and data subjects that are compliant with the General Data Protection Regulation (GDPR)
  
  
• External reports: Clear and accessible information would be provided on how to make external reports to the ombudsman or public authorities and, where appropriate, to European Union institutions, bodies, or agencies
  
  
• Ban on retaliation: Whistleblowers are protected from retaliation, which may include, but is not limited to, termination of employment, reduction in compensation, blocking of promotions, harassment, discrimination, and other forms of unfair treatment. Any form of retaliation for making a whistleblowing report is prohibited, including adverse career and financial consequences for the whistleblower
  
  
• Anonymous reporting of violations: There is no obligation for employers to accept anonymous reports from whistleblowers - this is at the discretion of the legal entity, which may decide to accept such reports and take follow-up action, or not to accept them at all

Implementing the internal whistleblowing procedure

To implement an internal reporting procedure, companies are obliged to consult with their trade union organization or, if there is no such organization, the elected representatives of the employees. If there are no such representatives, the company may consider organizing an election, with consultations lasting between five and ten days and the procedure itself entering into force seven days after being communicated to the employees.

The organization may also consider providing regular training to all its employees, informing them of the procedures, the rights of whistleblowers, and the protection that the system offers.

Whistleblowing procedures can be regularly reviewed and updated to ensure that they are effective and comply with applicable law. It is also one of the employers’ responsibilities to keep a record of internal reports.

Sanctions for noncompliance

A whistleblower who is the victim of retaliation is entitled to compensation in an amount not less than the average monthly wage in the national economy in the previous year, or to damages.

On the other hand, a person who has suffered damage because a whistleblower knowingly reported or disclosed untrue information to the public is entitled to compensation and damages for violation of personal rights from the whistleblower who made the report or disclosure.

If the internal whistleblowing procedure is not implemented or is implemented incorrectly, the Polish Whistleblowing Act provides for a fine of up to PLN5,000 – in practice it would be imposed on the management board of the company.

In addition, the Polish Whistleblowing Act also provides for criminal penalties for preventing or obstructing a whistleblower from reporting, retaliating against a whistleblower, revealing the identity of a whistleblower, and making false reports. The penalties are a fine of up to PLN1,080,000, a restriction of liberty, or imprisonment for up to three years.

Whistleblowing checklist for employers

Before implementing a whistleblowing system, an organization may consider the following questions.

1. Do current procedures meet the new requirements?

2. Has there been mandatory consultation with trade unions or employee representatives to obtain their support and comments on the procedure?

3. Will the procedure be implemented as a separate system for each entity in the group, or as a common system covering several entities?

4. Who will be responsible for processing and reviewing the reports? Will it be an internal organizational unit or an external service provider?

5. Develop a data protection policy: Are procedures compliant with the GDPR?

6. What mechanisms are in place to protect the anonymity of whistleblowers and the confidentiality of information provided?

7. Are the procedures clear and accessible to all whistleblowers, including employees at different levels of the organization?

8. What training will be provided to ensure that employees are aware of the new procedures and their rights under the whistleblowing system, and how often will this take place?

9. What mechanisms are foreseen to regularly monitor the effectiveness of the procedures and to make any necessary updates or corrections?

10. How will employees be informed and encouraged to participate in the company’s whistleblowing procedures?

Conclusion

The Polish Whistleblowing Act marks a significant step forward in protecting individuals who report illegal activities in Poland. By establishing comprehensive protections and clear reporting procedures, the Act aims to encourage the reporting of misconduct and ensure that whistleblowers are safeguarded from retaliation. While the implementation of the Act presents challenges, the benefits of fostering a culture of transparency and accountability are substantial. As organizations adapt to these new requirements, the protection of whistleblowers will become an integral part of the Polish legal and corporate landscape.