Prague, 30 November 2021 – On 17 December, the European Whistleblower Protection Directive will apply to Czech companies employing more than 250 employees. But national legislation has not yet passed through Parliament. How do companies that have already implemented a reporting channel evaluate their experience and how do those that have yet to implement the new obligation view it? Some 75% of domestic companies that have implemented a reporting channel praise its effect. It enables them to respond flexibly to a wide range of internal misconduct – from employee fraud to HR problems. On the whole, the positive news is that the number of cases of abuse of the system remains negligible – 96% of companies record abuse in less than a quarter of cases. Companies that have not yet introduced the channel are more skeptical, with only 39% of them believing in the usefulness of the EU directive and the obligation to introduce a reporting channel in companies with over 50 employees. This results from a survey of 169 respondents conducted across the size spectrum of companies by the analytical consulting company EY in cooperation with the Czech Association of Small and Medium-sized Enterprises and Tradesmen. Only 39% of respondents already have a reporting system in place, meaning 61% have yet to implement one.

We would like to inform you that a draft of an amendment to Government Decree No. 221/2019 Coll., on the Implementation of Certain Provisions of the Investment Incentives Act (“the Amendment”) has been published. The draft of the Amendment will be further discussed by the Government. As a result of the Amendment, please see the possible changes in the eligibility conditions for strategic investment project incentives: