We are already three months into 2025. Establishing a whistleblower channel has been obligatory for all companies with more than 50 employees for exactly that long – a requirement that stems from the Whistleblower Protection Act.
At Grant Thornton Baltic, we have set up such a channel for our employees. We also have a hotline for quite a few clients, and we still handle the external processing of the reports for half of those clients. So, what have the first few months shown us?
One of the primary things we learned is that there are still many companies who find their way to us with a request that we set up a channel for them. Since the legislation does not provide for any sanctions for companies who have not set up a channel, companies currently have not had any reason to worry about being late to setting up the said channel. Nor is there any case law in the field, so it is not settled how courts will start interpreting certain sections of the legislation in future.
For example, Section 5 of the Whistleblower Protection Act prohibits any hindering of reporting of breaches. Having talked to the Ministry of Justice and analysing the section with other lawyers, I am unclear on whether a company that fails to establish the channel might be considered to be intentionally hindering a whistleblower disclosure? For that reason, we encourage companies to start addressing the whistleblower channel issue.
Not really all that complicated and time-consuming
A major concern we hear from companies is that setting up a channel is extremely resource-intensive and complicated. But it doesn’t have to be that way.
That is why in the case of our clients, the first step we took was to map out the main concerns. Then we found suitable solutions from the perspective of the specific undertaking. Following this path, a number of companies have determined that since they have no problems in their internal climate, it would be enough to just have a channel in the form of an email address or an in-house application form for the whistleblowers. Those companies do not incur monthly costs for keeping the channel up and running.
But regardless of whether the above-mentioned stripped-down solution is used or they opt for the full whistleblower channel package offered by Grant Thornton Baltic, almost all of our clients have found that there is no substitute for a proper internal procedure and training of employees.
Security of the channel is key
Practice has shown that there do not tend to be many reports coming through the whistleblower channel. So the main thing is that the channel be there in the first place for employees and business partners – the goal is to create a secure environment where people are not afraid to be candid about what is on their mind. Many would associate optimum security with processing done by an external party who can guarantee confidentiality in all situations.
It isn’t too late to set up a channel! Provide your employees and business partners a secure channel for sharing their concerns. It will undoubtedly help to improve the internal climate at your company and it will be beneficial in working with international partners who may already be required to have such a channel.
Write to us at legal@ee.gt.com to make an appointment.
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