Implementation of whistle-blowing channels in Spain

The implementation of whistle-blowing channels or report channels is a crucial step towards transparency and accountability in organizations. The channels allow employees to report any circumstance without fear. The creation of the channels also provide a process for investigation and addressing the issue.

The whistle-blowing channel can help to detect the wrongdoing before it escalates to a larger problem. It also creates a space where employees feel they can be heard. Everything benefits the organization and the people working in it.

In February 2023, in Spain, it has been published a new act regulating the protection of people who report on regulatory violations and fighting corruption. This new law gives a wider context and new obligations for the companies.

Who is obligated to have a whistle-blowing channel?

Every single entity in the Public Sector has to have an internal information system.

In the case of the private sector, every company with more than 49 workers will need one too. If the company works in matters of financial services, products and markets, prevention of money laundering or terrorist financing, transport safety and environmental protection will need a whistle-blowing channel as its specifics laws say, no matter how many employees it has.

Can organizations share a whistle-blowing channel?

The private legal entities with between 50 and 249 employees will be allowed to share their intern information system and the resources thought for managing and communications if they are willing to. They can do it by themselves or they can ask an external actor to do so, respecting in any case the guarantees provided for in this law.

When is mandatory to have the whistle-blowing channel?

The companies will have a deadline of three months to adapt their systems to the new regulation and proceed to its implementation. So, they have to be implemented by June 13^th , 2023. The companies with less than 50 workers have a special deadline. They will have to have the channel implemented by December, 1^st.

Which are the requirements for the Internal Information Systems?

There are several requirements asked by law for the Internal Information Systems. Here there are some:

• Naming a person in charge on the system to be the Head.
• Developing and publishing with the organization a protocol about the Internal Information System.
• Allowing anonymous reports and guaranteeing confidentiality.
• Allowing to make the report both verbally or written and documenting all the communications.
• Sending a receipt to the informant within a maximum of 7 days.
• Investigating the case for 3 months (extendable to 3 more months if needed). It is important that the rights and obligations of both the investigated person and the informant are regulated.
• Proving information related with the system and publishing it on the website of the company.
• Keeping a record book of the information received and the internal investigations carried out.

Adding to all this, we have to remember the Internal Information System has to be designed, established and managed in a secure way, guaranteeing confidentiality. Likewise, it has to be independent.

What happens if not?

The law specifies several infractions and sanctions which can reach up to one million euros in cases of non-compliance with the provisions said above. It also authorizes the creation of the Independent Informant Protection Authority. This is an independent administrative authority that will process sanctioning procedures.

Not meeting the obligation of having an Internal Information System is a “very severe” infraction by the law. So it could mean the highest sanction.

How can we help you?

We are a technological platform for legal services with top-level lawyers. We are aware of all requirements of the new law and we are ready to help you keep up with the deadline, taking care of everything your company need to get done before June. We will develop the protocol in accordance with the new regulations and we can also do a training for the system manager and other employees. If you prefer, we can keep the Information System as external managers for you.

The law requires the managing of the system has the adequate guarantees of independence, confidentiality, data protection and secrecy of communications, and we can guarantee you will have that.

The implementation of whistle-blowing channels is not just a legal requirement, but also an ethical responsibility of companies and organizations. You will realised that this new tool will help you have a better company health, between employees and also related with the functioning of the business itself. So, you have the opportunity to use a mandatory legal requirement to improve the productive and effectiveness of your business. Do not hesitate to contact us so we can help you make that a reality.