An EU directive compelling companies to set up their own reporting channels, promising strong protection for whistleblowers, has been facing delays in the Finnish legislative process.
The directive's original deadline to be written into Finnish law was December 2021, but now the law will be voted on in Parliament by autumn at the earliest.
The directive seeks to outline independent reporting channels for companies with over 50 employees. Additionally, reporting channels for firms under 50 employees are also expected to be encouraged through the coming legislation.
The goal of the directive is to protect those that alert occupational safety violations, labour infractions, and other unethical practices without fear of reprisal.
According Juha Keränen, a ministerial adviser at the Ministry of Justice, the bill is set to pass in Parliament in late September.
"This is a budget law that cannot be presented until the other big budget laws have been submitted to Parliament," Keränen told Yle.
The law would make a centralised external reporting channel in the Office of the Chancellor of Justice and more staff will be recruited as a result.
Protection against retaliation, but not for providing false information
The forthcoming law on whistleblower protection will require secure reporting of misconduct by employees, protecting their identity.
Violation of this ban on retaliation or a failure to report may result in liability for damages and an obligation to pay compensation to the alerter.
However, if false accusations are levied by the whistleblower, the notifier may be liable to pay for damages.
Reporting channels already in use
The impending directive has also led some municipalities to set up their own reporting channel ahead of the government's law.
The municipalities of Kemi and Iisalmi already have whistleblowing channels in place. According to Iisalmi's CFO Eeva Suomalainen, it is a matter of internal control and risk management.
"We are now going to monitor how the system works and whether there is a need for this reporting channel," she said.
Since the notification channel was established in January, only one complaint has come through the system so far. According to Suomalainen, the anonymous declaration was not entirely in line with the directive's goal.
"It concerned the monitoring and control of remote work in general, not the activities of an individual or organisation," Suomalainen said.