Whistleblowing Regulations in Lithuania. What to Use for Companies: an External Solution or an In-house One?

In Lithuania, the Law on the Protection of Whistleblowers, effective from 1 January 2019, marks a significant step towards enhancing transparency and accountability in both the public and private sectors. The regulation aims to create a secure environment for individuals to report breaches confidentially and without repercussions.

Under the law, companies must establish internal reporting channels, which can be managed either in-house or by third-party service providers. Companies are also required to implement whistleblowing procedures and designate a responsible person or unit for investigations. Specific subject areas for reporting are defined by the law.

In Lithuania, the law prescribes that internal channels for the reporting of breaches must ensure the confidentiality of whistleblowers. These channels are mandatory in all public or municipal institutions, private companies with 50 or more employees, and companies operating in specific sectors regardless of the number of employees.

When deciding between an external or internal whistleblowing solution, several factors must be considered.

Choosing an in-house whistleblowing mechanism allows companies to directly oversee the process, ensuring alignment with company protocols and values. However, this may lead to potential conflicts of interest or bias, especially if senior management is involved. Additionally, companies might lack the necessary expertise to handle complex cases effectively, risking mishandling and legal consequences.

On the other hand, an external whistleblowing solution provides an independent and impartial platform for employees and third parties to report concerns. This approach can build trust in the whistleblowing mechanism, as it ensures that reports will be investigated objectively by a neutral third party. External providers often have more experience in managing whistleblowing cases and ensuring compliance with relevant legislation. However, if a company opts for an external solution, it must carefully evaluate potential providers and select one with a proven track record of reliable service.

Ultimately, companies should consider their size, resources, and specific needs when choosing a whistleblowing solution. Developing robust whistleblowing systems and ensuring the fair and efficient handling of reports are essential for protecting whistleblowers’ rights and maintaining corporate integrity.

Outsourcing solution by Ecovis on Whistleblowing

ECOVIS ProventusLaw provides a whistleblowing system as an outsourced channel for companies, ensuring compliance with the EU Whistleblower Directive. Our service offers secure and confidential reporting channels, mitigating internal bias and enhancing transparency. By entrusting us with handling reports, companies can streamline the process and focus on core activities while managing whistleblowing cases effectively. Read more here.


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