Dejan Jasnic · Co-founder & Compliance Lead, Trusty · 20+ years anti-fraud & compliance · ACFE Swiss Chapter Board
Over the past years, the issue of corporate wrongdoing and the need for greater transparency have come to the forefront in the European Union. To address these concerns, the EU and its member states have begun implementing whistleblower protection laws. These laws aim to both encourage reporting of misconduct and shield employees from retaliation.
One of the most significant legislative developments in France is the Sapin 2 Waserman Law, which has far-reaching implications for businesses operating in the country. In this article, we will explore the key aspects of the Sapin 2 Waserman Law and its broader impact on whistleblower protection across the EU.
The Sapin 2 law (Law No. 2016-1691 of 9 December 2016) created the French whistleblower status, and its internal reporting procedures became mandatory on 1 January 2018. The Waserman law (Law No. 2022-401 of 21 March 2022) amended it to transpose the EU Whistleblowing Directive and has applied since 1 September 2022. Named after Michel Sapin and Sylvain Waserman, these two laws revolutionized whistleblower protection, compliance, and anti-corruption efforts. It marked a further pivotal advancement in these fields.
Obligations of the Sapin 2 Waserman law:
- Whistleblower Hotlines: The law mandates companies with 50 or more employees to implement internal whistleblower hotlines. These hotlines serve as confidential channels for employees to report suspected misconduct, fraud, or corruption within the organization.
- Anonymity and Non-Retaliation: The law ensures that whistleblowers can make anonymous reports without fear of retaliation. Companies are prohibited from taking any adverse action against employees who report wrongdoing in good faith.
- Protection of Whistleblower Identity: Above all the Sapin 2 Waserman Law places a strong emphasis on safeguarding the identity of whistleblowers. Selected company personnel, like compliance officers, have access to whistleblower identities to aid investigations.
- Legal Safeguards: In addition, whistleblowers who act in good faith and follow proper procedures are shielded from legal repercussions. Moreover the law provides comprehensive protection against civil, criminal, or disciplinary actions for such individuals.
- Free choice of reporting channel: Since the Waserman law, whistleblowers can report internally or go directly to a competent external authority, such as the Défenseur des droits. The law offers no financial reward: whistleblower status requires reporting in good faith and without direct financial compensation.
Waserman law impact on French businesses:
Legislation like the Sapin 2 Waserman Law has significant implications for businesses operating in France. As a result it places responsibility on companies to establish compliance programs and internal controls to detect and prevent wrongdoing. Companies establish whistleblower hotlines to promote transparency and accountability, demonstrating their dedication to ethical practices.
For businesses, compliance with the Sapin 2 Waserman Law is not just a legal requirement. It is an opportunity to foster a culture of integrity and gain the trust of employees, customers, and investors. Organizations prioritizing whistleblower protection and corporate ethics attract top talent, retain customers, and enhance their reputation. Most importantly such practices yield benefits in talent acquisition, customer retention, and marketplace reputation.
The broader impact on EU whistleblower law:
Sapin 2 Waserman Law is part of a broader movement within the EU to enhance whistleblower protection. The EU Directive on Whistleblower Protection, adopted in October 2019, sets minimum standards for whistleblower protection across all member states. Additionally, the directive mandates EU countries to establish confidential reporting channels.
It also requires whistleblower protection from retaliation and access to legal remedies.
With the implementation of the EU Directive on Whistleblower Protection, similarly there will be harmonization and consistency in whistleblower laws across the EU. Consequently, this will create a more level playing field for businesses operating in multiple member states.
The EU Directive on Whistleblower Protection aims to standardize whistleblower laws throughout the EU. This will, in turn, provide businesses operating in multiple member states with a more equitable environment. That is to say, it sends a powerful message that the EU is committed to promoting integrity and combatting corruption at all levels.
We provide a whistleblower hotline for French businesses!
Meanwhile as a business operating in France or across the EU, ensuring compliance with whistleblower protection laws is required to avoid sanctions. At Trusty, we understand the significance of whistleblower protection and the value of transparent corporate practices. In conclusion that’s why we offer a confidential and secure whistleblower hotline, with a 7-day free trial to help you establish a safe environment for employees to report concerns.
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Frequently asked questions
Companies with 50 or more employees must implement internal whistleblower hotlines as confidential channels for reporting suspected misconduct, fraud or corruption.
Yes. Companies may not take adverse action against employees who report in good faith, and reporters who follow the proper procedures are shielded from civil, criminal or disciplinary repercussions.
Only selected personnel, such as compliance officers, have access to whistleblower identities to support investigations. Safeguarding identity is a core requirement of the law.
The EU Whistleblowing Directive adopted in October 2019 sets minimum standards across member states, and the Waserman law of 2022 aligned the French regime with it.
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