The Whistleblowers Act

The Whistleblowers Act - which entered into force in Sweden in December 2021 and implements the EU Whistleblowers Directive - provides stronger protection for people who report wrongdoing in the workplace. At the same time, it obliges employers with 50 or more employees to establish secure and confidential internal reporting channels. Non-compliance can lead to liability and serious reputational damage.

What is the Whistleblowing Act?

The law aims to encourage the reporting of irregularities such as corruption, breaches of safety rules, environmental crimes and other wrongdoings in the public interest - and to protect the reporter from retaliation. For employers, it's about creating a system that makes it possible and safe to report internally, before problems escalate or leak externally. Here we go through what the law requires and how to implement a complete and functioning whistleblowing function.

A well-implemented whistleblowing function is not just a legal obligation - it is a tool that creates tangible business value:

  • Complies with legal requirements and avoids liability: Employers who lack a reporting channel or who retaliate against whistleblowers risk claims for damages and sanctions.

  • Catches abuses early: A functioning internal reporting channel allows issues to be handled confidentially - before they escalate, leak to the media or reach authorities.

  • Strengthens the company's culture and integrity: A clear policy and robust reporting system signals that the company takes ethics and compliance seriously, which strengthens the culture and attracts responsible employees.

  • Reduces financial and legal exposure: Identifying and stopping misconduct early on limits the potential damage - financial, legal and reputational - that can be enormous if not addressed in time.

Common challenges in implementing the whistleblowing function

Implementing a whistleblowing function that is fully legally compliant and actually used by employees is more complex than it seems:

  • To guarantee true anonymity: Employees only report if they genuinely believe that their identity is protected. Ensuring anonymity technically and procedurally requires the right systems and clear procedures.

  • The investigation process: Who investigates a report? What happens if the report concerns a member of the management team? How is the investigation documented and how is the reporter protected throughout the process?

  • Communication and anchoring: A reporting channel that employees do not know or trust is not used. Implementation requires thoughtful communication and a clear embedding in the culture.

  • Legal interpretation of the scope of the law: The law is relatively new and the interpretation of its requirements - what counts as protected misconduct and what the investigation process requires - requires specialist expertise in employment law and compliance.

How an interim specialist can implement your whistleblowing function

Building a comprehensive and fully legally compliant whistleblowing function requires specialist expertise combining employment law, HR, compliance and organizational implementation.

An Interim HR Manager, Interim Compliance Officer or Interim Employment Lawyer brings the broad skills needed:

  • Immediate specialist expertise: You get an expert who can map out what the law specifically requires of your organization, choose the right technical solution for the reporting channel, and ensure that the whole process complies with the law.

  • Dedicated and objective leadership: An external interim manager can design and implement the function with an independent perspective and ensure that the investigation process works even when the report concerns a member of the management team.

  • Internal communication and anchoring: They develop the communication plan, train managers and staff, and ensure that the system is actually used - not just exists on paper.

  • Results focus from day one: Interim Search's unique process ensures you have the best candidates on the table within 48 hours, ready to start creating value right away.

Frequently asked questions about the Whistleblowing Act

Which employers must have an internal reporting channel?

All private employers with 50 or more employees are obliged to have an internal reporting channel. For employers with 50-249 employees, the obligation came into force in December 2023. Employers with 250 or more employees have had the obligation since December 2021. Public employers - regardless of size - are also subject to the requirement.

What happens if the employer retaliates against a whistleblower?

The law explicitly prohibits retaliation against the whistleblower and those who help a whistleblower. If an employer takes action such as dismissal, reassignment or a pay cut, the employer may be liable to pay damages. Moreover, the burden of proof is reversed - the employer has to prove that the action was not linked to the reporting.

What is a reporting channel and what is required of it?

A whistleblowing channel is the system through which employees can report wrongdoing. The channel should be confidential, allow for anonymous reporting and be operated by a person or department independent from the reported activity. The channel should acknowledge receipt within seven days and provide feedback on the status of the case within three months.

What counts as protected misconduct?

The law protects the reporting of wrongdoing in the public interest - for example, corruption, breaches of rules on financial services, product and food safety, environmental legislation, data protection and money laundering. Personal employment conflicts - such as disputes over pay or working hours - are generally not protected by whistleblowing laws.

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