The Hungarian Whistleblowing Act will come into force on 24th of July 2023 for companies with more than 250 employees and service providers subject to the Anti-Money Laundering Act regardless of the number of employees.
The new Act also applies to companies with 50-249 employees from 17th of December 2023. Companies may also operate a common whistleblower protection system, however, a common channel operated at the central level of a company group would not be possible, since compliance with special Hungarian regulations is also necessary.
Companies with fewer than 50 employees could also decide to establish a whistleblower protection system even if they are not obliged to do so.
Employers may decide to handle the reports of whistleblowers fully internally or it is possible to involve an external organization or a whistleblower protection attorney.
An important factor for companies to consider is that the new Hungarian Act differs from the EU Directive and contains some special provisions, e.g., it defines who is considered as an employee of the company, expands the scope of persons who can make a report, and sets out in detail the documentation requirements for reports made in person.