Hungary

What stage has the legislature reached in implementing the Whistleblowing Directive? If not already implemented, when is it expected or planned that the required legislation will be passed?

The Hungarian parliament accepted Act XXV of 2023 in May 2023, which implemented the rules of the Whistleblowing Directive. Small and medium-sized enterprises (SMEs) must comply with the obligations by 17 December 2023 and larger companies emyploying 50-249 employees must comply by 24 July 2023.

Status

Legislation passed / Directive implemented.

Reporting topics covered (in addition to those covered by the Directive)

In the internal whistleblowing system, an unlawful or suspected unlawful act or or omission or other abuse may be reported.

Categories of person who may report (in addition to those specified in the Directive)

(i) employees,
(ii) employees whose employment relationship has ended,
(iii) people seeking to establish an employment relationship for whom the procedure for the establishment of such a relationship has started
(iv) self-employed people, the sole proprietor, if they have a contractual relationship with the employer,
(v) shareholders, members of the management, executive or supervisory body of an employer, also non-executive member,
(vi) contractors with a contractual relationship, subcontractors, suppliers, persons under the supervision and control of an agent,
(vii) trainees and volunteers,
(viii) for whom the procedure for the establishment of a legal or contractual relationship has been initiated, and
(ix) whose legal or contractual relationship with the employer has ended.

Are there any stipulations as to who may investigate a report?

The internal whistleblowing system may be operated by a neutral person or department within the employer designated for this purpose. The operation may be contracted to a whistleblower protection lawyer or other external organisation. Where an external organisation is engaged, the rules on conflict of interest and impartiality applicable to the whistleblower protection lawyer shall apply to the external organisation.

Are entities with fewer than 50 workers exempt?

Yes, but those companies can also set up a whistleblowing system voluntarily.

However, it is obligatory to set up a whistleblowing system regardless of the number of employees
a) for employers subject to the Act on the Prevention and Combating of Money Laundering and Terrorist Financing,
b) for employers registered in Hungary and operating as a licensee or operator in the offshore oil and gas industry outside the borders of the European Union,
c) for employers subject to the Regulation on the Reporting, Analysis and Monitoring of Civil Aviation Incidents,
d) for the operator of a Hungarian and non-Hungarian flagged floating installation in operation in the territory of Hungary.

If an exempt organisation implements a whistleblowing scheme will the Directive / implementing law apply?

No.

Are there any specific timescales that apply (e.g. for acknowledgements and responses) (Yes/No)?

Yes. Within seven days of receipt of the written report, the operator of the whistleblowing system should send an acknowledgement of the report to the whistleblower. The confirmation shall include general information on the procedural and privacy rules. The report shall be investigated within the shortest time possible under the circumstances, but not later than thirty days from the date of receipt of the report. The deadline may be extended in particularly justified cases, provided that the whistleblower is informed at the same time. The whistleblower shall in that case be informed of the expected date of the investigation and the reasons for the extension. However, the investigation shall not exceed three months.

Can reports be made anonymously?

Yes, however the investigation of the report may be omitted if the report was made by an unidentified person.

Are private sector entities required to accept and follow up on anonymous reports?

No, the investigation of the report may be omitted if the report was made by an unidentified person.

Remedies for retaliation

The employment supervisory authority may apply the following sanctions if it finds that the law has been infringed: prohibition of further employment, warning, confiscation. Fines and disqualification from engaging in an activity may not be applied.

Are group-wide reporting channels permitted?

Yes. Employers with 50-249 employees under an employment relationship may jointly set up an internal whistleblowing system.