In March 2021, the Italian government issued the Legislative Decree n. 24/2023, acting on the EU Directive n. 2019/1937 to introduce significant changes and obligations for employers regarding whistleblowing matters. Under this new legislation, corporations operating within Italy must exhibit due diligence and careful response to any received reports of misconduct as it protects the employee whistleblower from any retaliatory actions, and prescribes a proper handling procedure that must be adhered to by the employer.
The legislative changes, initiated by the new directive, aim to fortify the position of whistleblowers within organizations by preventing any form of negative impact, such as demotion or termination, following their revelations of corporate wrongdoing. This elevated level of protection is expected to encourage more employees to come forward with valuable reports of malpractice without fear of adverse implications on their job security and career progression.
To fulfill their obligations under the new decree, companies based in Italy or multinationals with Italian operations will need to instate a precise procedure to handle received complaints, which should begin with a careful examination of any filed reports while ensuring the confidentiality and safety of the reporting employees throughout the investigation process.
Implementing these procedures necessitates adjustments in the companies’ legal and human resources departments to comply with the new regulatory requirements. Firms will have to invest in training their personnel to effectively manage the reports and ensure compliance with the new directives. Firms may also need to review their policies and reporting mechanisms to ensure that they comply with the new rules and allow confidential and secure reporting by employees.
In conclusion, while the introduction of Legislative Decree n. 24/2023 will impose new obligations on corporations, it is a welcome step towards ensuring a safer and more transparent corporate environment in Italy.
Here is a more detailed analysis of the new rules and obligations for whistleblowers by Seyfarth Shaw LLP.