Whistle-blower protection

Pursuant to Act XXV of 2023 on law on complaints, whistleblowing and rules for reporting breaches (Complaints Act), companies are required to establish and operate an internal whistleblowing system through which employees, contractors and other stakeholders (either anonymously or by name) can report any wrongdoing or malpractice they have experienced.

Under the provisions of the Complaints Act, companies with more than 250 employees must operate and maintain a whistleblowing reporting system from 24 July 2023, and the SME (small and medium-sized enterprises) sector (companies with more than 50 employees) from 17 December 2023. Regardless of the number of employees, an internal whistleblowing reporting system will also be set up by those who are subject to Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing (Pmt.) as of 24 July 2023, e.g. financial service providers, notaries, auditors, real estate agents, head office providers, etc.

One of the most important provisions of the law is the protection of the whistle-blower. This means that, if the whistleblowing is done lawfully, the whistle-blower must not suffer any disadvantage or any penalty (e.g. termination of employment, deduction of bonus, etc.).

The whistle-blower can make the report in writing or orally.

If the company operates the system itself, it must set up a separate unit within the organisation and ensure the impartiality of the investigation and the anonymity of the whistle-blower. The company is entitled to decide not to operate the system itself but to use an external contractor. This can be an external organisation or a so-called whistle-blower protection lawyer. The whistle-blower protection lawyer may manage the entire notification process by forwarding the notification to the compay, except for the data of the notifier, for which he/she is bound to confidentiality.

In my view, the best way to ensure impartiality and independence is to outsource. As a whistle-blower protection lawyer, I undertake, subject to the conflict of interest rules, to act as a whistle-blower protection lawyer, to operate the system, including receiving and, at the request of the client, investigating whistleblowing reports.

As a whistle-blower protection lawyer, I provide my clients’ employees with the means to report information about illegal or suspected illegal acts or omissions or other misconduct via the website www.drmeszarosemma.hu.

Why hire a whistle-blower protection lawyer?

No need for business managers to deal with whistleblowing
No need to set up your own system
A whistle-blower protection lawyer knows the current legal environment
Constantly monitors changes in legislation
Has the necessary expertise to operate the system
Certified in whistle-blower protection
As an external expert, can ensure anonymity, impartiality and independence
All tasks are centralised in one hand

What are the consequences if an employer does not operate a whistleblowing system?
Infraction proceedings, employment inspectorate proceedings and sanctions, as well as data protection
authority proceedings may be involved. These can lead to heavy fines.

In case of an anonymous report, filling out the fields containing personal data is not mandatory.