Mandatory Implementation of Reporting Channels in companies: Deadline until December 1, 2023

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Reporting Channels

The entry into force of the Whistleblower Protection Law on March 13, 2023, marked a significant change in Spain, imposing on companies the obligation to establish an internal reporting channel for their personnel.

What does this law imply?

The Law 2/2023, better known as the Whistleblower Protection Law, requires public institutions, companies, political organizations, and unions to establish systems allowing individuals to securely and confidentially report potential irregularities or illegal practices.

The primary goal is to encourage collaboration between entities, both public and private, to investigate serious violations while safeguarding those who report such actions.

What is a reporting channel and why is it important?

A reporting channel is a vital tool that ensures the safety of those wishing to report potential labor law violations. It facilitates confidential communication of activities that may contravene the company’s Code of Conduct.

Early implementation of this channel contributes to creating a secure work environment and supports the company’s commitment to transparency and ethical practices.

Deadlines for Companies: December 1, 2023!

Companies with 50 or more employees must implement a reporting channel by December 1, 2023, as mandated by Law 2/2023. This law, effective since March, applies to companies, public entities, political organizations, and unions handling public funds.

Different Deadlines based on Company Size

  • Companies with 250 or more employees: should have established the system before June 13.
  • Companies with 50 to 249 employees: deadline by December 1.
  • Adaptation of existing systems: until September 13.

Procedures and Requirements to Comply with Regulations

Companies must create a reporting channel ensuring the confidentiality of reporters and reported parties. Clear procedures have been outlined for receiving and handling reports, with defined timelines for investigation and personal data protection.

Penalties for Non-Compliance

Failure to meet this obligation is considered a severe violation, with fines ranging from €30,001 to €300,000 for individuals and €600,001 to €1,000,000 for companies. Penalties may include public admonishments, bans on fiscal benefits, or contracting with the public sector.

Only a few days remain for mandatory implementation. If you haven’t had the time, Feliu N&I can assist you. Contact us!

www.feliu.biz

www.expatfeliu.com

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