As a quick reminder, the main obligation that the law imposes on obligated persons is to create and implement an internal reporting system through which violations will be reported. Obligated entities also are obliged to select a "competent person" to receive the reports, assess their validity and propose corrective and preventative measures. Notably, the law will protect whistleblowers, as well as persons close to them or persons who have facilitated or enabled the report, from retaliation.

It is mandatory for obligated persons to implement an internal reporting system as of 1 August 2023. An exception applies to private employers with 50 to 249 employees, who have until 15 December 2023 to implement an internal reporting system.

We recommend paying attention to the new obligations, given the risk of a fine of up to CZK 1,000,000.

Author: Klára Šmídová‍