Whistleblowing Law in Italy: Everything You Need to Know

Law 179/2017: The Regulatory Framework in Italy

Law 179/2017, known as the whistleblowing law, represented a fundamental step in protecting those who report irregularities within companies and public entities. This measure strengthened protection measures for whistleblowers, guaranteeing confidentiality, protection against retaliation, and sanctions for those who obstruct the right to report.

Law 179/2017 establishes precise rules to protect whistleblowers and to regulate the management of complaints in both the public and private sectors. Let's look at the key points of the legislation:

One of the crucial aspects of the whistleblowing law is the protection of the whistleblower's identity. Organizations are obliged to guarantee the confidentiality of information and to prevent retaliation against those who report wrongdoing. Violation of this provision can lead to heavy penalties.

The legislation requires companies and public entities to adopt secure systems for managing reports. In particular:

• Public administrations must provide secure internal channels for receiving complaints.
• Private companies with more than 50 employees are required to implement a compliant reporting system.
• Organizations operating in sensitive sectors (such as finance and healthcare) must adopt stricter compliance measures.

Law 179/2017 provides for significant sanctions for those who obstruct or try to discourage reports. Companies that do not comply with the regulations may incur fines and legal consequences. Furthermore, those who suffer retaliation are entitled to compensation.

The legislation differentiates the application between public and private sectors:

• Public sector: Obligation for all entities to adopt whistleblowing systems, with controls by ANAC (National Anti-Corruption Authority).
• Private sector: Legislation applied to companies with more than 50 employees, in line with European directives on whistleblowing.

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Whistleblowing in Italy and the European Directive 2019/1937

The European Directive 2019/1937, also known as the EU Whistleblowing Directive, introduced a uniform regulatory framework for the protection of whistleblowers throughout the European Union. The objective is to guarantee the protection of those who report wrongdoing in the workplace, both in the public and private sectors, reducing the risk of retaliation and increasing corporate transparency.

How Italy Implemented the Directive with Legislative Decree 24/2023

To comply with European regulations, Italy issued Legislative Decree 24/2023, which strengthened the existing provisions on whistleblowing. The main innovations introduced include:

• Obligation to establish internal reporting channels: All companies with at least 50 employees must set up secure systems for managing complaints.
• Protection extended to new categories: The legislation now protects not only employees, but also suppliers, interns, volunteers, and candidates.
• Introduction of more severe sanctions: Companies that hinder or do not guarantee the protection of reports risk high fines and legal consequences.
• Central role of ANAC: The National Anti-Corruption Authority (ANAC) has the task of monitoring the implementation of the legislation and sanctioning any irregularities.

The Differences between Italian and European Legislation

Although the EU Whistleblowing Directive established a common basis for all Member States, Italy introduced some specificities in its implementation. The main differences include:

European Directive 2019/1937	Legislative Decree 24/2023 (Italy)
Obligation of internal reporting channels for companies with at least 50 employees	Same requirement, with specific sanctions for companies that do not comply
Protection for all workers, former employees, and collaborators	Extension of protection also to suppliers and volunteers
Need to guarantee anonymity and protection against retaliation	Reinforced obligation with the direct involvement of ANAC

How to Comply with the New Legislation

To comply with Legislative Decree 24/2023 and the EU Whistleblowing Directive, companies must adopt reporting management software that guarantees security, anonymity, and traceability.

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Whistleblower: Who Can Report and What Protections Are Guaranteed?

The term whistleblower refers to someone who reports wrongdoing or violations within an organization. The whistleblowing regulations protect these reporters, guaranteeing anonymity and protection from retaliation. With the entry into force of Legislative Decree 24/2023, protections for whistleblowers in Italy have been strengthened, making the adoption of internal reporting channels mandatory in companies and public entities.

Who Can Make a Whistleblowing Report?

According to the current whistleblowing law, the following can make a report:

• Employees and collaborators of the company or public entity, including fixed-term and permanent workers.
• Former employees who have had employment relationships with the company and have become aware of wrongdoing during their activity.
• Suppliers and external consultants, including freelancers and professionals who have commercial relationships with the organization.
• Shareholders and members of administrative bodies, including auditors and accounting auditors.
• Job candidates if they become aware of wrongdoing during the selection process.

Reports can concern regulatory violations, financial crimes, fraud, corruption, risks to workplace safety and other illegal behaviors that could harm the company or the community.

What Protections Are Guaranteed to Whistleblowers in Italy?

The whistleblowing regulations provide a series of protection measures for those who report wrongdoing, including:

• Confidentiality of identity: the whistleblower cannot be identified without their consent, except for legal obligations.
• Protection against retaliation: the reporting employee cannot suffer dismissals, demotions, forced transfers, or other forms of discrimination.
• Access to legal protection tools: the whistleblower can turn to ANAC (National Anti-Corruption Authority) or the judiciary to report any retaliation suffered.
• Guaranteed anonymity: the use of reporting management software ensures anonymity and IT security.

What Risks Does a Whistleblower Protected by Law Avoid?

Thanks to the protections provided by the whistleblowing regulations, a protected whistleblower avoids:

• Unfair disciplinary consequences: no punitive measures can be adopted against those who report in good faith.
• Threats or psychological pressure: the employee is protected from possible intimidation by the company.
• Illegitimate dismissals: companies cannot dismiss a whistleblower without just cause.
• Legal risks: if the report is made in compliance with regulations, the whistleblower cannot be legally prosecuted.

Ensuring a safe and transparent work environment is essential. For this reason, it is fundamental to adopt reporting management software that complies with current regulations.

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Sanctions for Violation of the Whistleblowing Law

Failure to comply with whistleblowing regulations has serious consequences for companies and public entities. Legislative Decree 24/2023 provides for significant administrative sanctions for those who do not adopt compliant reporting channels or implement retaliation against whistleblowers.

Consequences for Companies that Do Not Comply with the Regulations

Companies and entities subject to the regulations must implement a secure and compliant internal reporting channel. In case of violation of the provisions, the National Anti-Corruption Authority (ANAC) can impose sanctions that vary based on the severity of the infraction:

• Failure to establish a reporting channel: sanction up to €50,000.
• Obstruction of reporting or retaliation against the whistleblower: fine up to €50,000.
• Absence of measures for the protection of anonymity: sanction up to €40,000.

In addition to economic sanctions, companies can suffer reputational damage and legal consequences, compromising the trust of employees and customers.

Examples of Applied Sanctions

Some recent cases demonstrate how important compliance with the whistleblowing law is. For example:

• A company in the financial sector was fined €40,000 for not guaranteeing anonymity to whistleblowers.
• A public entity suffered a sanction of €50,000 for having ignored internal reports and having attempted to dismiss a whistleblower employee.
• A multinational was sanctioned for €45,000 for not having implemented a compliant reporting system.

These cases highlight the importance of adopting an effective and compliant reporting management system.

How to Avoid Compliance Problems?

To ensure compliance with the whistleblowing law and avoid sanctions, companies must adopt the following measures:

• Implement reporting management software that complies with regulations.
• Ensure the confidentiality of the whistleblower through encrypted and anonymous systems.
• Train employees on rights and duties provided for by the regulations.
• Constantly monitor and update the internal reporting process.

Adopting a digital solution for managing reports reduces the risk of sanctions and demonstrates the company's commitment to transparency.

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How to Implement a Corporate Whistleblowing System?

Implementing an effective corporate whistleblowing system is fundamental to ensure compliance with regulations and promote an ethical and transparent corporate culture. Here are the key phases for correct implementation.

Digital Tools for Managing Reports

Companies must equip themselves with secure and compliant whistleblowing software that allows employees and stakeholders to report wrongdoing anonymously and in a protected manner. A good system must guarantee:

• Accessibility: the reporting channel must be easily accessible to employees and collaborators.
• Confidentiality and anonymity: the whistleblower must be protected against possible retaliation.
• Traceability and secure management: the system must allow effective monitoring of reports without compromising privacy.
• Compliance with regulations: it must respect the provisions of Legislative Decree 24/2023 and Law 179/2017.

Adopting a specific reporting management software reduces the risk of sanctions and simplifies corporate compliance.

Best Practices for Regulatory Compliance

To ensure an effective system that complies with whistleblowing regulations, it is essential to follow some best practices:

• Define clear policies: create internal whistleblowing regulations and communicate them to employees.
• Designate a responsible person: identify an internal or external contact person for managing reports.
• Ensure prompt investigation: reports must be analyzed and managed quickly.
• Protect the whistleblower: ensure they do not suffer discrimination or retaliation.
• Monitor and update the system: periodically review procedures to improve them.

The Role of Employee Training

A whistleblowing system is effective only if employees understand its importance and how it works. Training is essential to:

• Increase awareness: workers need to know what they can report and how to do it.
• Provide clear instructions: explain how to use the platform and the rights of whistleblowers.
• Prevent fears and reluctance: reassure employees about the protection of their identity.

An effective training program includes workshops, informational materials, and practical simulations to improve confidence in the system.

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