2024 WLG Whistleblower Guide: Sweden
Is there a law to protect whistleblowers? If so, which law?
Yes, the Swedish Whistleblowing Act (Sw. lag [2021:890] om skydd för personer som rapporterar om missförhållanden) implements the EU Directive (2019/1937) on the protection of persons who report breaches of Union Law, commonly known as the "Whistleblowing Directive." This Act came into force on December 17, 2021.
The primary aim of the Swedish Whistleblowing Act is to protect individuals who report certain breaches of Union law and other serious misconduct they become aware of in a work-related context. The Act ensures that whistleblowers are safeguarded against retaliation and provides a framework for reporting and addressing such issues effectively.
Are companies legally obliged to introduce a whistleblowing system?
Yes, all legal entities with more than 50 employees are required to establish internal reporting channels and routines for reporting, confirming the recipient of reports, and following up on misconduct that falls within the scope of the Swedish Whistleblower Act.
If so, which companies must introduce a whistleblowing system (number of employees, turnover, sector)?
The obligation to establish reporting channels and routines, as outlined above, applies to all legal entities in both the private and public sectors with 50 or more employees.
What forms can a whistleblowing system take (written, verbal, email, electronic tool)?
The whistleblowing system or reporting channels must be designed to allow the reporting person to submit reports both in writing and orally. Additionally, the system must enable the reporting person to schedule a meeting within a reasonable timeframe to provide their report in person.
Which reports must be permitted?
To qualify under the Swedish Whistleblowing Act, the reporting individual must have become aware of the misconduct in a work-related context. Additionally, the misconduct must either involve a violation of EU law covered by the Whistleblowing Directive (or national laws implementing such EU law), or there must be a public interest in disclosing the reported misconduct. Consequently, reports that, e.g., solely concern the reporter's personal working conditions or job relations need not be permitted.
Must anonymous reporting be guaranteed?
There is no explicit right to anonymity when making a report, nor are companies explicitly obligated to facilitate anonymous reporting. However, the obligations to handle and follow up on reports remain unchanged even if the reporting person chooses to remain anonymous. Additionally, confidentiality requirements apply to the identity of the reporting person as well as any third party mentioned in the report.
Who must be able to provide information (only employees or also external third parties)?
There are requirements to make the reporting channels and clear information on how to use them available for employees, voluntary workers, trainees, consultants, and others who perform work under the company's influence and control, as well as for members of the supervisory or management bodies and shareholders who are active in the company's operations.
Reports must also be permitted from former employees, voluntary workers, trainees, and consultants, anyone who has applied for a job or a position at the company, former members of the supervisory or management bodies, and former shareholders who have been active in the company's operations.
Can companies rely on one centralized hotline or is it necessary to have one hotline for each subsidiary?
Under the Swedish Whistleblowing Act, medium-sized companies, defined as those with 50 to 249 employees, are permitted to share internal reporting channels with other companies of similar size, including those within the same corporate group. These companies are also allowed to share procedures for receiving and following up on reports. However, it is important to note that they are not permitted to share procedures for contacting reporting persons.
In contrast, companies with 250 or more employees are not allowed to share reporting channels or procedures for handling reports with other companies. This restriction means that larger companies cannot rely solely on centralized reporting channels and procedures and must establish their own independent systems for managing whistleblowing reports.
Can a whistleblowing system also be operated by an external body (e.g. consultant)?
Yes, the reporting channels can be managed by an external third party as long as the third party provides adequate assurances regarding independence, confidentiality, data protection, and secrecy.
However, the company remains responsible for ensuring that the reporting channels are designed and operated in compliance with the requirements of the Swedish Whistleblowing Act.
Are sanctions imposed for failure to introduce a whistleblowing system?
Yes, the supervisory authority has the power to issue an injunction accompanied by a conditional fine (Sw. vite) to ensure compliance with the obligations to establish, operate, and inform about internal reporting channels as mandated by the Swedish Whistleblowing Act.