Shredding light to Whistleblowing

In Cyprus, the legal principles regarding whistleblowers are primarily governed by the Protection of Persons Reporting Breaches of Union and National Law of 2022 (‘the Whistleblowing Law’). The Whistleblowing Law is transposing the Directive on the Protection of Persons who Report Breaches of Union Law (Directive (EU) 2019/1937) (‘the Whistleblowing Directive’) into national law.

The Whistleblowing Law was enacted to provide a legal framework for the protection of individuals who report or disclose information on wrongdoings, illegal activities, or misconduct occurring within their workplace or in the public interest.

General Principles

Here are some key legal principles regarding whistleblowers in Cyprus:

1. Whistleblower: A whistleblower can be any individual who has access to information about wrongdoing, illegal activities, or misconduct occurring within their workplace or in the public interest. Whistleblowers may be employees from various sectors, such as private companies, public institutions, non-governmental organizations, or other entities operating within the jurisdiction of Cyprus. Therefore, employees, contractors, consultants, volunteers, or any other persons associated with an organization or entity as well as shareholders and persons belonging to the administrative, management or supervisory body of an undertaking, including non-executive members, as well as volunteers and paid or unpaid trainees and anyone who works under the supervision and direction of contractors, subcontractors and suppliers, can potentially act as whistleblowers.
2. Whistleblower Protection: The law aims to protect whistleblowers from any form of retaliation, such as dismissal, demotion, harassment, or discrimination, as a result of their reporting. It establishes safeguards to ensure that whistleblowers can make disclosures without fear of adverse consequences. However, it should be noted that the provisions of this Whistleblowing Law shall not apply to reports of breaches of rules on matters or contracts relating to defence or security matters.
3. Reporting Mechanisms: The law encourages internal reporting within the organization as the primary means of addressing wrongdoing. Whistleblowers are encouraged to report their concerns to their employers, who are then required to establish and maintain internal reporting channels for this purpose. If the internal reporting fails to address the issue, the whistleblower may escalate the matter to external authorities.
4. Confidentiality and Anonymity: Whistleblowers have the right to request confidentiality and, in certain circumstances, to remain anonymous during the reporting process. This protects them from potential retaliation and ensures their identities are not disclosed without their consent.
5. Scope of Protected Disclosures: The law covers a broad range of wrongdoing or misconduct, including criminal offenses, breaches of legislation, corruption, financial malpractice, health and safety violations, environmental damage, and threats to public security. However, it is essential that the disclosure is made in good faith and on reasonable grounds. We should note that
6. Whistleblower Remedies: The law provides remedies for whistleblowers who suffer retaliation as a result of their disclosures. Remedies may include reinstatement, compensation for damages suffered, and any other appropriate relief deemed necessary by the competent authority or court.
7. Competent Authority: The law designates the Commissioner for Administration (Ombudsman) as the competent authority responsible for receiving, assessing, and investigating whistleblower disclosures. The Ombudsman has the power to carry out investigations, access relevant information, and take appropriate action based on the findings.

Employers’ GDPR obligations

The Whistleblowing Law imposing certain obligations to the employers, including and not limited to the following:

1. Any processing of personal data shall be carried out in accordance with the General Data Protection Regulation (Regulation (EU) 2016/679) (‘GDPR’);
2. Any personal data collected in the context of the receipt of reports shall be deleted within three (3) months from the date of completion of the procedure, unless court proceedings are pending;
3. In the event of an oral reporting the employers have the right to document the oral reporting in the form of accurate minutes of the conversation written by the staff member responsible for handling the report whilst the employers shall offer the reporting person the opportunity to check, rectify and agree the transcript of the call by signing it legal entities have the right to document the oral reporting in specified ways.

 Obligations of a large company

The Whistleblowing Law imposing to a large company of fifty (50) to two hundred forty-nine (249) employees the obligation to establish the channels and procedures for internal reporting by 17th December 2023.

It’s important to note that the above information provides a general overview of the legal principles regarding whistleblowers in Cyprus. For specific details and legal advice, it is recommended to consult the relevant legislation and seek assistance from legal professionals familiar with Cyprus law.

We are delighted to announce that our law firm has been appointed as the legal advisors of an international ship management organisation in relation to corporate and whistleblowing matters. This appointment signifies the trust and confidence placed in our firm’s expertise and experience in handling complex legal issues within the shipping industry.

As legal advisors, our role will be to provide comprehensive guidance and support regarding various corporate matters and furthermore, we will be actively involved in ensuring that the company has a robust and effective whistleblowing framework in place, to develop and implement policies and procedures that encourage the reporting of wrongdoing, protect whistleblowers from retaliation, and facilitate appropriate investigations into reported concerns. Our objective is to help foster an environment of transparency and integrity within the company, ensuring compliance with relevant laws and regulations.