Luxembourg Minister of Justice Sam Tanson has presented a draft law transposing Directive (EU) 2019/1937 (the so-called EU Whistleblower Directive). The draft law extends the scope of the EU Whistleblower Directive beyond notifications of breaches of EU law to cover national law. Furthermore, the draft aims to reduce the current legal uncertainty for whistleblowers by providing specific rights and obligations. The draft provides for the creation of a whistleblowing office, mainly to inform potential whistleblowers of the applicable procedures.
Whistleblowers who knowingly report or publicly disclose false information face imprisonment of between three days and three months and a fine of between EUR 1 500 and EUR 50 000. In addition, administrative penalties of between €1,500 and €250,000 are threatened for those who:
- obstruct a notification,
- refuse to provide information on a report or provide incomplete or false information,
- violate the whistleblower’s right to privacy,
- refuse to take corrective action.
Companies with between 50 and 249 employees are given a two-year transition period to comply with the new rules. They should implement internal whistleblowing regulations by 17 December 2023. However, the draft indicates that around 150 entities with more than 250 employees will have to implement the relevant solutions already from the entry into force of the law, as the transitional period will not apply to them.