Act CLXV of 2013 on Complaints and Public Interest  Disclosures effective as of January 1, 2014 settles the so  far insufficiently regulated legal field of whistleblowing  schemes at workplaces.

The Act:

  • Enables the employers to set up whistleblowing systems  for reporting violations of law and the norms incorporated  to employers’ rules, by ceasing the unregulated status and  controversial legal practice.
  • Defines the maintenance and operation conditions of  whistleblowing systems and the possible proceeding to be  initiated upon the reports.
  • Expressly obliges the employer to report the data processing  related to the whistleblowing system to the register kept by  National Authority for Data Protection and the Freedom of  Information on the application form issued by the authority.
  • Obliges the employer to disclose detailed Hungarian language  information on its website regarding the operation of the system  and the whistleblowing procedure.
  • Declares that the primary form of the whistleblower report is the  identified report, however enables the no-name basis version  thereof as well.
  • Prohibits the processing of special data in a whistleblowing  system.
  • Declares that arrangements shall be taken to ensure that the  case is reported to the police if the investigation of the conduct  reported by the whistleblower requires the initiation of criminal  proceedings.
  • Introduces the concept of the lawyer for the protection of  whistleblowers (“externer Ombudsman”) as a new category, who  receives and manages whistleblower reports in the frame of a  contract after registering with the bar association.