The Hungarian parliament accepted Act XXV of 2023 in May 2023, which implemented the rules of the Whistleblowing Directive. Small and medium-sized enterprises (SMEs) must comply with the obligations by 17 December 2023 and larger companies emyploying 50-249 employees must comply by 24 July 2023.
Legislation passed / Directive implemented.
In the internal whistleblowing system, an unlawful or suspected unlawful act or or omission or other abuse may be reported.
(i) employees,
(ii) employees whose employment relationship has ended,
(iii) people seeking to establish an employment relationship for whom the procedure for the establishment of such a relationship has started
(iv) self-employed people, the sole proprietor, if they have a contractual relationship with the employer,
(v) shareholders, members of the management, executive or supervisory body of an employer, also non-executive member,
(vi) contractors with a contractual relationship, subcontractors, suppliers, persons under the supervision and control of an agent,
(vii) trainees and volunteers,
(viii) for whom the procedure for the establishment of a legal or contractual relationship has been initiated, and
(ix) whose legal or contractual relationship with the employer has ended.
The internal whistleblowing system may be operated by a neutral person or department within the employer designated for this purpose. The operation may be contracted to a whistleblower protection lawyer or other external organisation. Where an external organisation is engaged, the rules on conflict of interest and impartiality applicable to the whistleblower protection lawyer shall apply to the external organisation.
Yes, but those companies can also set up a whistleblowing system voluntarily.
However, it is obligatory to set up a whistleblowing system regardless of the number of employees
a) for employers subject to the Act on the Prevention and Combating of Money Laundering and Terrorist Financing,
b) for employers registered in Hungary and operating as a licensee or operator in the offshore oil and gas industry outside the borders of the European Union,
c) for employers subject to the Regulation on the Reporting, Analysis and Monitoring of Civil Aviation Incidents,
d) for the operator of a Hungarian and non-Hungarian flagged floating installation in operation in the territory of Hungary.
No.
Yes. Within seven days of receipt of the written report, the operator of the whistleblowing system should send an acknowledgement of the report to the whistleblower. The confirmation shall include general information on the procedural and privacy rules. The report shall be investigated within the shortest time possible under the circumstances, but not later than thirty days from the date of receipt of the report. The deadline may be extended in particularly justified cases, provided that the whistleblower is informed at the same time. The whistleblower shall in that case be informed of the expected date of the investigation and the reasons for the extension. However, the investigation shall not exceed three months.
Yes, however the investigation of the report may be omitted if the report was made by an unidentified person.
No, the investigation of the report may be omitted if the report was made by an unidentified person.
The employment supervisory authority may apply the following sanctions if it finds that the law has been infringed: prohibition of further employment, warning, confiscation. Fines and disqualification from engaging in an activity may not be applied.
Yes. Employers with 50-249 employees under an employment relationship may jointly set up an internal whistleblowing system.
