The Legislative Yuan recently passed the "Public Sector Whistleblower Protection Act" (hereinafter referred to as the Whistleblower Act), establishing the first law dedicated to whistleblower protection in Taiwan. The Whistleblower Act covers public sectors and state-owned enterprises to safeguard the rights of whistleblowers in public sectors, state-owned enterprises, and government-controlled businesses. This Act will take effect six months after its promulgation.

In the Whistleblower Act, "misconduct" refers to violations of certain provisions of the Criminal Code (such as malfeasance) by public servants or personnel associated with government agencies, or common crimes or illegal acts committed by public servants as outlined in seven specific laws, including the "Anti-Corruption Act." Anyone who reasonably believes there is "misconduct" in public sectors or state-owned enterprises and files a report in their own name to the relevant whistleblower handling agency will be protected under this newly enacted Whistleblower Act.

Furthermore, to ensure that whistleblowers are not subjected to retaliation resulting in damage to their rights and interests due to their actions, the Whistleblower Act explicitly prohibits entities from taking adverse measures against whistleblowers. Such adverse measures include dismissal, removal from office, deprivation of promotion-related benefits, and unfavorable changes to work locations or job assignments. Individuals who impose adverse measures on whistleblowers and hold the status of public servants will be disciplined or sanctioned under laws such as the Public Functionaries Discipline Act and the Civil Service Performance Evaluation Act. Non-public servants, including individuals and state-owned enterprises, may face substantial fines.

However, during the legislative process, lawmakers considered that if the Whistleblower Act were to be abruptly applied to private enterprises, it could significantly impact corporate culture and governance. In addition, apart from certain large-scale enterprises, such an application could substantially increase personnel management costs for small and medium-sized enterprises in Taiwan. Following the principle of "public-private segregation with parallel administrative and legislative tracks," the Act's scope was therefore limited to government-funded foundations and government-invested enterprises and institutions announced by the Ministry of Civil Service. The Whistleblower Act does not extend to private sectors or companies in general. After the new law being promulgated and implemented, its impact on the private sector's operations will need to be closely observed and adapted. Attention should be paid to the potential for future amendments expanding the law's applicability to private enterprises.

Source: Press Release of the Ministry of Justice, etc.

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