Italy passes new law to protect whistleblowers

After lengthy parliamentary debate, Italy has passed a new whistleblowing law. Law 179/2017, which came into force on 29 December, grants express protection to employees or collaborators who report misconduct discovered in the workplace whilst performing their duties. The law extends the scope of existing protection provisions covering all public servants to the employees of publicly owned companies, and those that supply the public sector, whether public or private.

Private companies that are ‘Law 231’ companies are also included. These are companies that have chosen to implement a sophisticated compliance programme to prevent the commission of crimes, in accordance with Legislative Decree 231/2001. If effectively implemented, the presence of the programme can exclude corporate liability for crimes committed by relevant directors, employees or external collaborators in the interests of the company. Although not mandatory, many large Italian companies have adopted this programme, including Telecom Italia, industrial manufacturer PPG and energy group Eni.

Under Law 179/2017, whistleblowers cannot be subject to sanctions, demotions, or any workplace re-organisations that impact negatively on their working conditions in a direct or indirect way. In the case of a complaint of such an action, the employer must prove that the measures are not discriminatory or retaliatory and are unconnected with the whistleblowing.

The legislation also vests the Italian National Anti-Corruption Authority (Autorità Nazionale AntiCorruzione) with the power to sanction non-compliance with the whistleblowing legislation. Punitive measures include sanctioning anti-corruption officers that fail to follow up on whistleblowing with a fine ranging from €10,000 to €50,000.