The Latvian Whistleblower Protection Law

Latvian Whistleblower Protection Law overview

In January 2022, Latvia’s parliament, the Saeima, enacted amendments to the country’s existing whistleblower protection law. The amendments transposed the EU Whistleblower Protection Directive’s requirements into Latvian law. The Latvian whistleblower law expands the scope of the EU Directive to protect not just reports of breaches of Union law, but also national illegality and unethical behavior. 

The new legislation came into force on April 2, 2022. It covers all employers with at least 50 employees (including both full-and part-time employees), as well as government agencies and private organizations that receive public funding, such as those operating in healthcare, education, or transportation. 

The law requires employers to establish internal reporting channels and to provide training to employees on the protection of whistleblowers. Employers are also required to appoint a person or department responsible for receiving and processing reports of wrongdoing. The law also protects whistleblowers and those assisting them from retaliation for submitting a report. 

For organizations with between 50 and 249 employees the Bill provides an extension to the deadline to 17th December 2023 to establish these formal channels.

What does the Latvian Whistleblower Protection Act cover?

The Act adopts the minimum standards for whistleblower protection outlined in the EU Whistleblower Protection Directive. These requirements include: 

• A secure and confidential channel for receiving whistleblower reports must be in place 
• Acknowledgment of the receipt of every whistleblowing report must be provided to the whistleblower within seven days 
• An impartial person or department must be appointed to follow up on the reports
• Records must be kept of every report received in compliance with confidentiality requirements 
• There must be diligent follow-up of the report by the designated person or department 
• Feedback on the follow-up or investigation must be given to the whistleblower within three months of receiving the report 
• All processing of personal data must be done in accordance with GDPR

What are the new rules outlined in the Latvian Whistleblower Protection Act?

All Latvian organizations with at least 50 employees must set up a whistleblowing channel with comprehensive whistleblower protection. These protections include confidentiality, a prohibition against retaliation and no liability for disclosing necessary information to the report. This should be the first-line channel for whistleblowing in the organization. 

Businesses with fewer than 50 employees are exempt from the requirement to set up a whistleblowing channel. Those with 50 to 249 employees can establish a joint whistleblower channel in coordination with other small businesses. Larger companies must set up their own whistleblower systems. 

In addition to protecting whistleblowers from retaliation, the law also provides them with various forms of assistance. Whistleblowers have the right to legal assistance, and the law establishes a fund to cover the costs of legal representation. They can obtain this assistance by contacting the State Chancellery, which is the government’s point of contact for whistleblowers.

Whistleblowers can report their concerns in several ways: 

• Via the internal reporting system that an organization establishes; 
• Reporting directly to competent government regulator or to the State Chancellery;
• Through authorized intermediate parties, such as a trade union. 

Whistleblowers can also report their concerns publicly if any of the following criteria are met:

• The organization that receives the whistleblower’s report does not inform the whistleblower in a timely manner of how the case is handled; 
• The violation alleged in the whistleblower’s report is not eliminated for a lengthy period without any objective reason; 
• The whistleblower has reasonable grounds to believe that the violation may constitute an imminent or manifest danger to the public interest; 
• The whistleblower has reasonable grounds to believe that by using an internal reporting channel, adverse effects will be caused, the violation will be hidden, or the violation will not be eliminated.

Anonymous report intake and management

Organizations in Latvia do not need to accept anonymous reports. For all reports that are submitted, however, information about the reporter must be pseudonymised so his or her identity is protected. (This step is not necessary if the whistleblower has already revealed his or her identity publicly.) From there forward, the whistleblower’s identity must be treated as restricted information, and every person handling the report has a duty to protect that identity. If the whistleblower’s identity is inadvertently disclosed, the company must inform the whistleblower promptly. 

External service providers can be used for outsourcing whistleblowing channels, though the organization is still responsible for meeting statutory obligations associated with the channel.

What are the risks of non-compliance?

If an organization is found acting in retaliation against a whistleblower or attempting to prevent them from reporting an issue, the organization may be required to pay compensation up to 1,400 euros.