Wolf Theiss: Client Alert - New whistleblowing legislation takes effect in Hungary

New whistleblowing legislation takes effect in Hungary

What does the new whistleblowing system entail?

In line with Directive (EU) 2019/1937 of the European Parliament and of the Council on the protection of persons who report breaches of Union law, the Hungarian Parliament adopted a new law on complaints, whistleblowing and rules for reporting breaches, which replaces previous legislation. Below we have summarized the key points of the new rules. This information has been prepared for private sector actors.

The new law establishes a three-stage reporting system in line with EU requirements:

the first stage is the so-called internal reporting channel, which refers to the reporting of the breach within the entity;

the second stage is the so-called external reporting channel, whereby the whistle-blower communicates the breach to the competent national authority designated by the Member State;

the third stage is the public disclosure of the breach.

Of these, it is the so-called internal reporting channel that employers are obligated to establish.

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