Italy has transposed the EU Directive: Whistleblowing law drafted behind closed doors

A new whistleblower law has been approved in Italy, on 9 March 2023. The Italian Government definitively approved legislation to implement the EU Directive concerning the protection of persons who report violation of Union Law. The new law will enter into force four months after its publication in the official Gazette.

Italy was referred to the Court of Justice

The European Commission had decided to refer Italy, as well as seven other member states, to the Court of Justice for failure to transpose the EU Directive on Whistleblowing in time. The official deadline to transpose the Directive was 17 December 2021, but only 8 member states managed to adopt legislation in time. Since then, a total of 17 countries have passed new laws.

Transposition process in Italy

The whistleblowing legislation process in Italy has received criticism from civil society for its lack of transparency. There has been no hearings and no consultation on the proposal announced in January 2022. The Ministry of Justice was granted the official mandate to transpose the Directive, however they did not schedule any meetings or consultations and later, the proposal expired.

In September 2022, the law reform restarted with a new mandate for the Government to draft a transposition bill. The new draft law was approved in December and submitted to Parliament only three days after. Parliamentary committees were given time to submit comments on the draft, before the final review. On 9 March 2023, the legislation was finally approved by the Italian government.

Details of the Italian law on the protection of whistleblowers

We’ve spoken to Camilla Corsini, Territory Manager of Italy at Whistlelink, to get the latest updates on the Italian whistleblower law. Read on for the details on the most important aspects of the law.

Scope of the Italian whistleblower law:

Companies and municipalities must set up internal channels to allow reports of misconduct that may be of harm the general public, the integrity of the public administration, or the private entity.

These channels can be managed by a person or a department that must be autonomous and specifically trained. Another alternative is to appoint an external person or office.  

Reports may be made in writing, through IT solutions, or orally (hotlines or voice messaging). The reporting person may also request a face-to-face meeting.

Deadlines:

For all companies with 250+ employees and municipalities with 10k+ residents, the deadline is four months after the law enters into force. For all companies with employees between 50 and 249, the deadline is 17 December 172023.

Additionally, when managing a case, the following deadlines must be respected:

• First message of acknowledgement for case received must be sent to the whistleblower within 7 days of receiving the case
  
• First deadline for initial feedback is set 3 months (90 days) after the 7 days period mentioned before
  
• The max period for deletion of closed cases is set to up to 5 years.
  

Sanctions:

The national anti-corruption authority (ANAC) has been enforced to apply all relevant sanctions.

• Fines ranging from €5,000 to €30,000 when the company committed retaliation on the whistleblower, or when the reporting process was hindered or obstructed, or when the requirement of confidentiality was breached.
  
  
• From €10,000 to €50,000 when the company has not implemented a whistleblowing channel, or when the procedures for submitting a case and/or handling cases have not been adopted, or when the procedures adopted do not comply with the law requirements, or when no verification, analysis and investigation of the case received has been carried out.
  

Anonymous reporting:

Anonymous reporting must be accepted but it’s not a requirement. The obligation is around confidentiality.

Other important details about the whistleblower law in Italy

• The internal whistleblowing channels must use an appropriate encryption system for data protection and confidentiality throughout the entire process.
  
  
• The internal whistleblowing channels must be easily accessible by all stakeholders and sponsored in a dedicated section of the website. Additionally, the company must create a policy on how to use the internal channel, how to submit a report, what to include in a report, and indicate how the reports will be handled.
  
  
• The protection against retaliation is extended to:
  • Everyone who assists the whistleblower during the reporting process
    
  • To all relatives or people with a stable emotional bond working or not working with the whistleblower
    
  • All colleagues with a regular and current relationship with the whistleblower
    
  • To all entities owned by the whistleblower or by one of the categories of people just mentioned.
    
    
• For oral reports, the telephone call or voice message is documented on a device suitable for storage and listening or through a transcript. If the telephone call or voicemail is not recorded, the report must be documented in writing. In the case of a transcript, the whistleblower may verify, rectify, or confirm the content of the transcript by signing it.
  
  
• For reports made via an in-person meeting, the meeting must be recorded, with the consent of the whistleblower, on devices suitable for storage and listening or transcribed (and confirmed by signing).
  
  
• For company groups, the whistleblowing function and site can be shared if the number of employees in all subsidiaries is not greater than 249. If one subsidiary has more than 249 employees a separate whistleblowing function and website must be activated.
  

Keep reading our blog to find out the latest news and the transposition process of the EU Whistleblowing Directive! You can also check our page about National Whistleblower laws to learn more.