Our experts Lucie Kučerová and Radim Doležal answered the specific question whether it is more appropriate for companies to use a fully internal or rather external whistleblowing system.

They responded as follows:
In the Czech Republic, whistleblowing regulations were implemented by Act No. 171/2023 Coll., effective from August 1, 2023. The obligation to implement an internal reporting system applies, among others, to employers who employ at least 50 employees as of January 1 of the relevant calendar year. Each company must implement its own reporting system; sharing of the system is allowed under the same rules as under the EU regulation. It is also possible to outsource the system from an external provider.
We recommend opting for the external provider of the system and for an external designated person. Alternatively, an external provider with an in-house designated person who is not involved in employee decision-making processes directly regarding employees, external providers, or other potential whistleblowers, e.g., a compliance manager.
The primary reason is to mitigate the risk of retaliatory actions. If the company (the persons making the respective decisions) doesn’t know the identity of the whistleblower, it cannot be motivated by the whistleblower’s report to take actions that could be later qualified as (or argued to be) retaliatory. This makes it easier for companies to fight potential claims arising from alleged retaliation.
Another reason for choosing an external provider is the complexity of the reports, which can require using external advisors to successfully handle the report, anyway. In some cases, there is also a risk that a fully internally operated whistleblowing system may not be sufficiently objective and effective, which raises the risk of the whistleblower going public or raising various claims as well as the risk of administrative penalties. External providers are also expected to have broader experience in handling the reports and managing the system. As a result, their solutions are likely to be sophisticated and effective.
However, prior to choosing the external provider, we recommend vetting them and the system itself, choosing someone trustworthy, and carefully structuring the relationship as they will have insight into internal matters of the company.

For those interested in finding out how other CEE experts answered the question, just click here.