SWEDEN Trends and Developments Contributed by: Jenny Welander Wadström, Björn Johansson Heigis, Andreas Hallbeck and Säde Märgel, Roschier
Introduction HR investigations, often referred to as internal inves - tigations in Sweden, have gained heightened impor - tance in the country as corporations grapple with expanding regulatory frameworks and rising expec - tations around compliance, governance and work - place culture. Internal investigations in Sweden are not governed by any single comprehensive statute but instead sit at the intersection of different regulations, legal principles, procedural law concepts and best practices. This multi-layered context creates both opportunities and constraints for companies when structuring and conducting investigations. Two themes that are currently in the spotlight are the practical implications of the Swedish Whistleblower Act and the role of data protection legislation in shap - ing and constraining investigative practices. There has been a marked increase in the use of external investi - gators, especially in investigations concerning sensi - tive misconduct allegations or corporate misconduct in areas that can entail significant corporate liability. External counsel and other consultants are now fre - quently engaged to ensure impartiality, manage regu - latory risk and assist in reconciling demands arising from applicable whistle-blowing legislation, data pro - tection legislation and other relevant legislation such as labour law. Finally, the role of attorney-client privilege is receiving greater attention. For both domestic and multinational corporations with a presence in Sweden, understand - ing when investigative materials may be protected – and when they may be subject to mandatory disclo - sure in regulatory or legal proceedings – has become a central consideration in structuring investigations. These topics are addressed below. The Whistleblower Act and Its Practical Implications, Including Interactions With Labour Law Legislative framework and scope The Swedish Whistleblower Act ( Sw. Lag (2021:890) om skydd för personer som rapporterar om miss‑ förhållanden ) implements the EU Whistleblower Direc - tive and is the central Swedish statute governing pro - tection for individuals who report irregularities in a work related context. The Whistleblower Act applies
to reports of irregularities that constitute breaches of certain areas of EU law, and other irregularities that are of public interest. The protection against obstruc - tion of reporting, and against retaliatory measures, afforded under the legislation extends to a wide group of reporting persons, including employees, directors, job applicants, volunteers, trainees, contractors and operationally active shareholders. The protection also extends to any person who previously belonged to any of these categories and gained knowledge about irregularities while holding such position. The Whistleblower Act is structured into chapters addressing, among other things, conditions for pro - tection, the processing of personal data, documenta - tion and confidentiality. It includes detailed rules for mandatory internal reporting channels and follow up procedures for in-scope companies. Supervision is assigned to the Swedish Work Environment Authority ( Sw. Arbetsmiljöverket ), which oversees compliance with the requirements on internal reporting channels and procedures. The Whistleblower Act entered into force on 17 December 2021, with a phased implementation of the obligations to establish internal whistle-blowing functions depending on the size of organisations. All private and public entities with 50 or more employees are now required to have internal reporting channels and procedures in place that comply with the Whistle - blower Act. Internal reporting channels and procedural requirements For companies that are in scope, the most visible practical impact of the Whistleblower Act has been the requirement to establish internal reporting chan - nels that satisfy specific criteria. These channels must allow written and verbal (including physical) reporting, ensure confidentiality and be designed so that only authorised persons or units have access to the reports and take certain follow-up measures. Employers must acknowledge receipt of a report within seven days (subject to limited exceptions) and provide feedback on follow up measures within three months. The Whistleblower Act further contains specific rules on documentation, preservation and deletion of
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