What is Spain's Law 2/2023? It transposes EU Directive 2019/1937 and seeks to protect people who report breaches of EU law or certain Spanish rules.
The legislation addresses corruption in the public and private sectors and offers protection through internal and external channels and, in certain circumstances, public disclosure.
Origins and scope of the legislation
Spain needed to transpose the EU directive and establish a general framework for protecting people who report serious wrongdoing. Its delay in doing so led the European Commission to bring proceedings before the Court of Justice of the EU.
The law extends protection beyond breaches of EU law to certain serious criminal and administrative offenses. It also provides safeguards against retaliation and assistance for the reporting person . In defined circumstances it offers leniency for useful information and allows anonymous reports.
Corruption can undermine trust in institutions and affect markets. The law addresses both public and private corruption , including conduct that increases costs and harms the quality of goods and services.
How does Law 2/2023 relate to an ethics hotline?
Anonymous reports can help protect reporting persons. The law also sets safeguards against knowingly false information and procedures for handling reports that do not meet its requirements.
Covered organizations had deadlines to establish internal reporting systems. The original article cites the 2023 deadlines for organizations with at least 250 employees and those with at least 50, as well as obligations for public entities. Noncompliance can carry substantial penalties; verify current requirements for your organization.
Reports may be made through internal or external channels, subject to the applicable legal rules. To learn more about Law 2/2023, read this article.
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