Less freedom for companies to investigate staff abuse
December 2024 - With the introduction of the new Private Investigation Act, internal investigations into personnel are more strictly regulated. The law replaces the outdated Private Investigation Act of 1991.
The new regulations - which are expected to come into force by the end of 2024 - apply to companies that want to investigate, for example, fraud, theft or other wrongdoing within their organisation. Where previously there were few legal frameworks, this law provides stricter oversight that requires companies to take into account privacy, fundamental rights and clear procedures.
The law - replacing the outdated Private Investigation Act of 1991 - states that all forms of private investigation (including occasional investigations) are covered by the rules. For example, an investigation must now be based on a legitimate reason; ‘fishing expeditions’ are prohibited. You are also no longer allowed to collect sensitive information, such as religious or political affiliations. Within your company, you must draw up regulations setting out transparently the procedures and rules around internal investigations. Evidence obtained in violation of this law is void and unusable in court.
Impact on your business
The impact on companies is significant. Internal investigations may only be conducted by licensed persons, which requires security screening. Also, suspects must have their rights explained to them during interrogations, such as the right to counsel and the right to remain silent. Without compliance, companies risk fines or lawsuits declaring dismissals invalid.
Although unlicensed staff may conduct internal investigations under certain conditions, this only applies to checks within permanent staff. Self-employed persons working for a company are not covered. Moreover, all other legal obligations continue to apply, such as transparently laying down rules in a regulation.
Exceptions
Lawyers, journalists, notaries and auditors are exempt from the law, as are situations where only the employee concerned is questioned himself without further investigation. However, these exceptions are rare for internal investigations.
The law was passed in May 2024, despite opposition from the business community, which fears it plays into the hands of fraudulent employees. Companies will have a two-year transition period to draft their internal regulations, but experts recommend making adjustments now. Once the law comes into force, presumably at the end of 2024, it will be a ‘gamechanger’ for business operations and internal detection.
