Last March 15, 2023, Legislative Decree No. 24/2023 came into force, which is the new Italian legislation on “whistleblowing” and aims to protect people who:
- report violations of national or European Union regulatory provisions that harm the public interest or the integrity of the public administration or private entity;
- have become aware of such violations in a public or private employment context.
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To which companies does it apply?
The decree applies to, among others, private entities that:
- have employed an average of at least 50 employees under permanent or fixed-term employment contracts in the last year;
- even if they have not reached the average of 50 employees in the last year fall within the scope of application of the regulations on financial services, products and markets and prevention of money laundering or financing of terrorism, transport safety and environmental protection;
- adopt organization and management models under Legislative Decree No. 231/2001, even if they have not reached an average of 50 employees in the last year.
Reporting channels
The companies mentioned above, shall set up appropriate reporting channels that can guarantee confidentiality:
- of the identity of the reporting person, the person involved and the person mentioned in the report; and
- of the content of the report and related documentation,
- and will be able to manage these channels themselves, deciding:
- to entrust them to an internal, autonomous person or corporate office consisting of specifically trained personnel; or
- to make use of external parties, also staffed with appropriately trained personnel on the subject.
- Reports may be made:
- in written form, including by computer,
- orally, through designated telephone lines or voice messaging systems, or, at the specific request of the reporter, by setting up a face-to-face meeting.
The person entrusted with the management of the reporting channel once a report is received, must issue the reporters, within 7 days, an acknowledgement of receipt and, within three months, initial feedback on the progress of the procedure.
The sanctions provided for
Penalties of up to 50,000.00 euros are provided for if companies fail to comply with the provisions contained in Legislative Decree No. 24/2023 e.g. in case of:
- failure of the company to establish reporting channels;
- adoption of non-compliant procedures;
- failure to carry out verification and analysis of reports received;
- carrying out retaliation;
- prevention or attempted prevention of reporting;
- breach of the obligation of confidentiality.
Entry into force
Legislative Decree No. 24/2023 comes into effect as of July 15, 2023 for private companies that employed an average of more than 249 workers in the last year.
For those who did not exceed this threshold, however, the effective date is December 17, 2023.
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LDP has organized a team of professionals to support its clients who need to implement a system of protection and safeguards for the authors of reports of crimes and irregularities as envisaged by the new legislation on “Whistleblowing.”
