Human Resources

Employee Protection Policy Example

XYZ Organization

Adopted/Amended __/__/20__

Section 1. Purpose

The XYZ Organization is committed to providing a workplace where employees and volunteers are free to raise good faith concerns regarding the organization’s business practices, specifically: (1) reporting suspected violations of law on the part of the organization, including but not limited to state and federal laws and regulations; (2) providing truthful information in connection with an inquiry of the public or investigation by a court, agency, law enforcement, or other governmental body; and (3) identifying potential violations of the organization’s policy, specifically the policies contained in the organization’s Policies and Procedures Manual.

By reference this policy is intended to incorporate those provisions of Section 301 of the Sarbanes-Oxley Act of 2002 and require the XYZ Organization audit committee of the organization to establish formal procedures for: (a) the receipt, retention, and treatment of complaints received by the organization regarding accounting, internal accounting controls, or auditing matters; and (b) the confidential, anonymous submission by employees of the organization, of concerns regarding questionable legal, ethical and accounting or auditing matters. The organization is committed to achieving compliance with all applicable laws and regulations, accounting standards, accounting controls and audit practices. Accordingly, in order to facilitate the reporting of concerns and complaints, the organization’s audit committee has established the following procedures for (1) the receipt, retention and treatment of complaints (2) the confidential, anonymous submission by employees and volunteers of the organization of concerns regarding certain matters, and (3) protection of those employees and volunteers.

Section 2. Procedures

Section 2.1  Complaints Submission

Any person, including employees, with a concern or complaint regarding compliance with applicable laws, accounting matters, and violations of the organization’s policy with regard to ethics may submit their concern or complaint. Employees may forward concerns regarding complaints on a confidential and anonymous basis to the chair of the audit committee through the mail, an Internet hotline or e-mail as follows:

1. Via Mails: In writing to the chair of the audit committee of the organization at its corporate headquarters by regular mail or facsimile as follows:
   XYZ Organization Audit Committee
   123 Jones Rd.
   Anchorage, AK 99501
   Facsimile:   907-___-1234
2. Via Internet: To send a message directly to the audit committee via the internet (the “hotline”), go to this website address: https://www._____.org/__/. Be advised that to use this system with complete anonymity, you should send this message from an unidentifiable location such as a public library terminal.
3. Via Email: To send an e-mail message to the audit committee, send to ______@_________.org. Be advised that sending a message from your business computer may not necessarily protect your anonymity. Use of a non-identifiable email address like a Hotmail account is the most confidential way of leaving a message.
4. Via Phone: Call 907-_____-______ to leave a message with the audit committee. Be advised that leaving a message on this voice mail system may not necessarily protect your anonymity. For completely anonymous contribution, please use the Internet interface.

Section 2.2  Scope of Matters of Complaint

These procedures relate to concerns or complaints relating to any questionable matter including, without limitation, the following:

1. Fraud or deliberate error in the preparation, evaluation, review or audit of any financial statement of the organization;
2. Fraud or deliberate error in the recording and maintaining of financial records of the organization;
3. Deficiencies in or noncompliance with the organization’s internal accounting controls;
4. Misrepresentation or false statement to or by a senior officer or accountant regarding a matter contained in the financial records, financial reports or audit reports of the organization;
5. Violations of the law or regulations of the local, state or federal governments or agencies thereof;
6. Willful and knowing misrepresentations to members of the public with regard to the organization or the activities of the organization;
7. Willful and knowing misrepresentations to donors and entities providing grants to the organization; or
8. Deviation from full and fair reporting of the organization’s financial condition.

Section 2.3  – Complaint Submission

The person submitting a complaint should include a telephone number in the submission at which he or she may be contacted if the person requests contact or if the audit committee determines that contact is appropriate. Any employee or volunteer of the organization may submit a concern or complaint to the management of the organization without fear of dismissal or retaliation of any kind. The organization will not discharge, demote, suspend, threaten, harass or in any manner discriminate against any employee in the terms and conditions of employment based upon any lawful actions of an employee with respect to good faith reporting of concerns or complaints.

Section 2.4  Complaint Handling

Upon receipt of a concern or complaint:

1. The Chair of the audit committee will determine whether the concern or complaint actually falls within the Scope of Matters of Complaint,
2. When possible, the audit committee shall acknowledge receipt of the concern or complaint to the submitter;
3. Concerns or complaints relating to accounting matters will be reviewed under audit committee direction and oversight of counsel or such other persons as the audit committee determines to be appropriate;
4. Confidentiality will be maintained to the fullest extent possible, consistent with the need to conduct an adequate review;
5. Concerns and complaints regarding questions of compliance with any law will be reviewed under audit committee direction, the executive director, and oversight of counsel or such other persons as the executive director determines to be appropriate;
6. Concerns and complaints regarding questions of ethics will be reviewed under audit committee direction, the board of directors, and such other persons as the executive director determines to be appropriate;
7. Prompt and appropriate corrective action will be taken when and as warranted in the judgment of the audit committee; and
8. When possible and when determined appropriate by the audit committee, notice of any corrective action taken will be given to the person who submitted the concern or complaint and employees and volunteers.

Section 2.5  Investigations and Reports

Reports of suspected violations of law or policy and reports of retaliation will be investigated promptly and in a manner intended to protect confidentiality, consistent with a full and fair investigation. The chairman of the board of directors, counsel, the executive director and the director of human resources, will conduct or designate other internal or external parties to conduct the investigations. The investigating parties will notify the concerned individuals of their findings directly, and prepare other reports as indicated by the circumstances. A summary of all such reports will be presented to the audit committee of the board of directors.

In the event that a report of a suspected violation of law or policy or retaliation involves an individual who reports to the executive director and the director of human resources, or to staff who report directly to these officials, then that official will not participate in the investigation and the audit committee will determine who will conduct the investigation.

The corporate secretary will maintain a log of all concerns or complaints, tracking their receipt, investigation and resolution and shall prepare a periodic summary report thereof for the audit committee.  Copies of complaints and the log will be maintained in accordance with the organization’s document retention policy.

Section 3. Retaliation

Any employee who believes that he or she is being subjected to any form of retaliation as a result of reporting a suspected violation of law or policy should immediately report the retaliation to one of the following: the “hotline,” the chief ethics and compliance officer, organization counsel, the director of human resources, the employee’s immediate supervisor, or a representative of the human resources function. Supervisors, managers, and human resources or their staff who receive complaints of retaliation must immediately inform the chairman of the audit committee, or the director of human resources.