Labo International S.r.l. Whistleblower System

Labo International S.r.l.

INSTRUCTIONS FOR MAKING A WHISTLEBLOWING REPORT

1. INTRODUCTION
With the Legislative Decree 24/2023, which came into force on March 30, 2023, and took effect for the Organization from December 17, 2023, our system has implemented the Directive (EU) 2019/1937 of the European Parliament and of the Council of October 23, 2019, concerning the protection of persons reporting breaches of Union law and containing provisions concerning the protection of persons reporting breaches of national regulatory provisions. Many innovations have been introduced, which have affected various aspects such as: the subject of the violations, the audience of the reporting subjects, the activation of reporting channels and their methods of use, the involvement of ANAC, the extension of protection measures to people or entities that support the whistleblower, etc. These Instructions have been drawn up by the Organization to provide the subject who intends to make a report under the aforementioned Decree with clear information on the usable channel, the procedure and the prerequisites for making an internal report as well as on the usable channel, the procedure and the prerequisites for making an external report.

2. WHO CAN MAKE A REPORT AND ENJOY THE PROTECTIONS PROVIDED?
The reporting person, also known as the whistleblower, is the individual who makes the report or public disclosure or denunciation of information about violations acquired in the context of their work. More specifically, reference is made to:

subordinate workers of the Organization regardless of the type of employment contract (e.g., permanent, part-time, intermittent, fixed-term, administration, apprenticeship, accessory work, occasional, etc.);
self-employed workers, collaborators, suppliers of goods and/or services or who carry out works for third parties, who carry out their work activity for the Organization;
freelancers and consultants who provide their work activity for the Organization (e.g., sales agents, lawyers, engineers, etc.);
volunteers and interns, paid and unpaid, who provide their work activity for the Organization;
shareholders and people with functions of administration, direction, control, supervision or representation, even of mere fact, at the Organization. It should be emphasized that the report can be made not only during the relationship, but also during a possible trial period or anyway before the actual establishment of the same (e.g., in the pre-contractual/selection phase) or after the termination of the relationship itself, provided that the information was acquired during the course of the latter.

3. WHO ARE THE OTHER PARTIES CONSIDERED AND TO WHOM THE PROVIDED PROTECTIONS APPLY?
Among the novelties introduced by the aforementioned Decree, it is noteworthy that the Legislator, for the first time, has also focused on other entities that may be involved in various capacities in the matter and has extended the protections to them as well. More specifically, the following entities are considered:

The facilitator, namely the natural person, also belonging to the same work context as the whistleblower, who assists by providing support and/or advice in the reporting process (e.g., a colleague in the office).
Individuals within the same work context as the whistleblower (or the discloser of information), meaning people connected by a network of relationships arising from the fact that they operate, or have operated in the past, in the same work environment and have a stable emotional bond with him (e.g., cohabitant) or a relationship of kinship within the fourth degree.
Colleagues of the whistleblower (or the discloser of information) who work in the same work context, meaning their employment relationship has not ceased, and who have a habitual and ongoing relationship with him. This implies a relationship that is not merely sporadic, occasional, episodic, or exceptional but is current, prolonged over time, and with a continuity sufficient to establish a relationship of camaraderie/friendship.
Entities exclusively or partially owned, provided it is a majority stake, by the whistleblower (or the discloser of information) or those for whom the same works, and entities operating in the same work context as such individuals.
vsdvs

4. WHAT IS A REPORT?
A report is a communication, whether written or oral, of information regarding violations submitted through the reporting channels that will be further detailed shortly.

5. WHAT CAN BE REPORTED AND WHAT, INSTEAD, FALLS OUTSIDE THE SCOPE OF WHISTLEBLOWING REGULATIONS?
In consideration of the characteristics of the Organization, as also indicated in the ANAC Guidelines approved by Resolution No. 311/2023, any information learned in the whistleblower's work context (see paragraph 2) about violations of EU law and the national implementing legislation – namely acts, behaviors, or omissions – or about violations of EU law and national implementing legislation that, based on concrete elements, could be committed (e.g., irregularities, anomalies, symptomatic indicators, etc.) can be subject to reporting through the internal or external reporting channel (and also public disclosure or reporting to the competent authority), including well-founded suspicions and elements related to conduct aimed at concealing violations.
More specifically, while inevitably referring to the regulations for every detail, the following can be reported:

Offenses falling within the scope of EU or national legislation related to the following sectors: public procurement; services, products, and financial markets, and prevention of money laundering and terrorist financing; product safety and compliance; transport safety; environmental protection; radiation protection and nuclear safety; food and feed safety and animal health and welfare; public health; consumer protection; privacy and personal data protection, and security of networks and information systems.
Acts or omissions harming the financial interests of the Union.
Acts or omissions concerning the internal market.
Acts or behaviors that undermine the purpose or objectives of the provisions in EU legislation.

Additionally, any retaliations suffered can also be communicated to ANAC.
A report, however, cannot concern information that is blatantly unfounded or pertains to information already entirely in the public domain or is based on solely unreliable rumors or speculations (e.g., hearsay or rumors).
As for expressly excluded contents:

Disputes, claims, or requests related to a personal interest solely pertaining to individual employment or work relationships, including relationships with hierarchically superior figures.
Reports of violations already mandatorily regulated by other legal sources that already guarantee specific reporting procedures.
Reports of violations related to national security, as well as contracts related to defense or national security aspects, unless such aspects fall within the relevant EU derived law.

It is explicitly stated that the legislation under discussion does not prejudice the application of national and European provisions on: classified information; medical or forensic professional secrecy; confidentiality of deliberations of judicial bodies; rules of criminal procedure; autonomy and independence of the judiciary; national defense and public order and security; exercise of workers' rights.
Finally, it is noted that the reasons that prompted the individual to make a report are irrelevant for the handling of the report and the protection of the reporting party.

6. WHAT IS THE MINIMUM CONTENT OF A REPORT?

In general, a report must be as detailed as possible. In summary, it is necessary for the following to be clear:

The personal details of the reporting party.
The time and place in which the reported incident occurred.
A description of the incident.
The personal details or other elements that allow the identification of the individual to whom the reported facts can be attributed.

To ensure an adequate level of completeness and to facilitate investigative activities, it is advisable for the reporting party to attach any documents that may provide evidence of the reported facts, as well as to provide information about other individuals potentially aware of the facts.

In any case, if necessary, the party handling the reports will proceed to request additional information.

7. CAN REPORTS BE ANONYMOUS?
The term 'anonymous reporting' refers to a report from which the identity of the reporting party cannot be derived. Such reports fall outside the scope of whistleblowing regulations and will be treated by the Organization as ordinary reports. Nevertheless, the Organization will record and retain the documentation related to anonymous reports received.

8. HOW CAN A REPORT BE SUBMITTED?
The Organization has established a dedicated internal communication channel that ensures the confidentiality of the reporting party's identity and other individuals involved in the procedure. The individuals described above can submit a report in writing through the use of an encrypted computer platform accessible via the company website. In addition to this method, it is always possible to request a direct meeting using the same communication tool mentioned above (simply enter the request in the space dedicated to reporting), which will be scheduled as soon as possible or within a reasonable timeframe. For maximum confidentiality, it is advisable not to use the company email, company phone number, or any other organization-owned tools (e.g., computer, tablet, company internet network, etc.) for making the report. Additionally, for the same reasons, it is recommended to make the report outside of working hours.

9. WHO MANAGES THE INTERNAL REPORTING CHANNEL?
The Case Manager is XIFRAM S.R.L. (VAT ID: 05124350280), located in Padua, Italy, at Viale della Navigazione Interna 51.

10. WHAT HAPPENS IF THE REPORT IS RECEIVED BY SOMEONE OTHER THAN THE ENTITY RESPONSIBLE FOR MANAGING REPORTS?
Any individual who receives a whistleblowing report, in case they are not authorized to handle it, must, within 7 days of receiving it, forward the report to the designated authority for handling and must simultaneously notify the reporting party of this forwarding.

11. AFTER RECEIVING THE REPORT OR FORWARDING A REQUEST FOR A MEETING, WHAT HAPPENS?

The entity responsible for managing whistleblowing reports, within 7 days of receiving the report or meeting request, sends a receipt acknowledgment to the reporting party, acknowledging receipt of the report and initiating the handling process, or communicates the date, time, and location of the meeting. The only reports that do not receive a receipt acknowledgment are those received during the meeting.

Following the receipt, there is an assessment of the admissibility/procedural/receivability requirements of the report. If the outcome is negative, the report will not proceed further. Otherwise, the investigative phase begins.

The reporting party will receive a final response, indicating the measures taken or to be taken, the reasons for the decision, and any other necessary information, within 3 months from the date of the receipt acknowledgment or, in the absence of such acknowledgment, within 3 months from the expiration of the 7-day period from the submission of the report.

12. WHEN AND HOW CAN REPORTS BE MADE THROUGH THE EXTERNAL REPORTING CHANNEL?
The individuals mentioned above can also use the external communication channel provided by the National Anti-Corruption Authority, commonly known as ANAC. A report can be made using this channel if:

The internal communication channel is not mandatory, or even if it is, it is not active or is active but not in compliance.
A report has already been made through the internal communication channel, but no response has been provided (it is recalled that acknowledgment of receipt must be given within 7 days from the date of receipt, and a response within 3 months from the date of acknowledgment of receipt, or in the absence of such acknowledgment, within 3 months from the expiration of the 7-day period from the submission of the report).
The reporting party has valid reasons to believe that if they made an internal report, it would not be effectively addressed (e.g., in case of conflicts of interest) or it could pose a risk of retaliation.
The reporting party has a valid reason to believe that the violation may constitute an imminent or obvious danger to the public interest.

The individuals described above can also report to ANAC (exclusively to this Authority) any retaliations they believe they have suffered due to the report, disclosure, or public dissemination made.

To use the external communication channel to ANAC and for further clarification about the characteristics and details of this channel, the procedure, and the prerequisites for making the report, please refer to the tools and explanations provided at the following link, which directly leads to the institutional website of the National Anti-Corruption Authority: https://www.anticorruzione.it/-/whistleblowing.

Below is the link to directly access the platform for making a report to ANAC: https://whistleblowing.anticorruzione.it/#/.

13. WHAT IS MEANT BY PUBLIC DISCLOSURE?
Public disclosure refers to the act of making information about violations publicly known, that is, disseminating information to the general public (with regard to what can or cannot be the subject of a report). This dissemination occurs through the press, electronic media, or other means of communication capable of reaching a large or even indefinite number of people (e.g., television, radio, social networks, using the internet in general, etc.).

14. DOES THE INDIVIDUAL WHO MAKES A PUBLIC DISCLOSURE ALWAYS AND IN ANY CASE BENEFIT FROM THE DESCRIBED PROTECTIONS? AND IN CASE OF REPORTING TO THE JUDICIAL AUTHORITY?
Regarding public disclosure, an individual is entitled to the protections provided by the mentioned Decree if at least one of the following conditions is met:

The reporting party, after making an internal report without receiving a response within the specified timeframe, has made an external report to ANAC and has not received a response within a reasonable timeframe.
The reporting party has made an external report to ANAC and has not received a response regarding the measures taken or planned to follow up on the report within a reasonable timeframe.
The individual has valid reasons to believe, reasonably and based on concrete circumstances (not mere speculation), that the violation may represent an imminent or obvious danger to public interest.
The individual has valid reasons to believe that making an external report to ANAC may pose the risk of retaliation or may not have an effective follow-up.

The individual making a public disclosure should consider themselves distinct from the source of information for journalists. The Legislature has provided the opportunity for individuals to directly approach the competent judicial authorities. In this case as well, individuals enjoy the protections provided by the aforementioned Decree.

Regarding individuals with the status of a public official or a person in charge of public service, making an internal or external report does not exempt them from complying with the provisions of Articles 361 c.p., 362 c.p., and 331 c.p.p.

15. WHAT PROTECTIONS AND SUPPORT MEASURES ARE PROVIDED BY WHISTLEBLOWING LEGISLATION?

The protection system is structured to include:

Protection of the confidentiality of the identity of the reporting party, the facilitator, the person or persons indicated as possible perpetrators of the reported conduct, any other individuals named in the report or attached documents, as well as anyone involved in the procedure and events reported.
Protection against any retaliatory measures taken by the Organization due to the report, public disclosure, or denunciation.
Limitations of liability regarding the disclosure and dissemination of certain categories of information (e.g., information protected by copyright law, data protected by privacy regulations, etc.) that operate under certain conditions.

Here is a merely illustrative list of what could be considered retaliation: dismissal, suspension, or equivalent measures; demotion or failure to promote; change of functions, change of workplace, salary reduction, modification of working hours; suspension of training or any restriction of access to it; negative performance reviews or negative references; imposition of disciplinary measures or other sanctions, including financial ones; coercion, intimidation, harassment, or ostracism; discrimination or any unfavorable treatment; failure to convert a fixed-term employment contract into an indefinite-term contract, where the worker has a legitimate expectation for such conversion; non-renewal or early termination of a fixed-term employment contract; damages, including to the person's reputation, especially on social media, or economic or financial prejudice, including loss of economic opportunities and loss of income; inclusion in inappropriate lists based on a formal or informal sectoral or industrial agreement, which may make it impossible for the person to find employment in the sector or industry in the future; early termination or cancellation of a supply contract for goods or services; cancellation of a license or permit.

Support measures are provided in the form of information, assistance, and consultations free of charge on reporting methods and protection from retaliation offered by national and European Union legislative provisions, on the rights of the involved person, as well as on the methods and conditions for access to legal representation at the state's expense. A list of third-sector entities that provide support measures to reporting individuals is established at ANAC.

16. HOW WILL THE ORGANIZATION PROCESS THE PERSONAL DATA OF INDIVIDUALS INVOLVED IN ANY CAPACITY?
The Organization will process data in accordance with the information provided in the subsequent document. In any case, the data subject may at any time request a copy of said information or seek clarification regarding the processing of their personal data from the Organization.