Companies have important work to do in relation to the creation of a whistleblowing system
Medium and large companies will soon have to establish their internal abuse reporting system. In case of improper operation of this, they will have to face serious data protection, labor law or civil law consequences – it was said at the event organized by the Baker McKenzie law firm on the occasion of the European Diversity Month.
The aim of the joint event with the Hungarian Business Leaders Forum was to deepen the importance of diversity and inclusivity in Hungarian business life. An essential element of this is the culture of speaking up and standing up, which includes giving employees the opportunity to report potential abuses at the company. In 2019, the EU directive was published, according to which a system for the protection of persons reporting public interest must be developed. The measures were transposed into Hungarian law in the past few days.
The President of the Republic did not initially sign the law, which was adopted in April, but sent it back to the parliament for consideration. Based on this, the parliament adopted the bill in an amended form, the law was promulgated on May 25, and will enter into force on the 60th day after that. After entry into force, it will be mandatory for larger companies to set up the notification system within 60 days, and for smaller ones by the end of the year. This makes it possible for employees to report abuses detected during their work so that they do not have to fear possible retaliation.
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