Introduction to the Whistleblower Protection Act in Germany: Obligations and Challenges for Companies

The Whistleblower Protection Act (HinSchG) has been in effect in Germany since July 1, 2023. It serves to protect so-called whistleblowers from job-related reprisals and disadvantages (e.g. warnings and termination, but also discrimination) if, for example, they report cases of

• Corruption and fraud

• Violations of occupational health and safety regulations and environmental standards

• Violations of product safety regulations

• Violations of business and competition law, e.g. protection against unreasonable harassment through advertising via telephone calls, faxes, emails, etc.

• Requirements to protect privacy, data protection and the confidentiality of electronic communication

• other legal and serious compliance violations

report to the company.

Small and medium-sized companies are now also obliged to immediately set up appropriate reporting procedures and an expert, independent reporting office!

According to the Whistleblower Protection Act, companies with 50 or more employees (there are exceptions especially for financial service providers and insurance companies) must now immediately set up an independent reporting office for whistleblowers

Participation of data protection officer and works council

The works council may need to be involved in setting up a reporting office and reporting processes and it may be necessary to adapt existing employment contracts.

In addition, the data protection requirements of the GDPR must be observed when setting up the reporting office and any associated processing of personal data. The company’s data protection officer should be closely involved!

Urgent need for action!

Companies that have not yet implemented a whistleblower system that meets the requirements of the Whistleblower Protection Act must therefore take immediate action. Setting up such a system is a demanding project that requires a lot of time in addition to significant technical and legal expertise. This represents a particular challenge, especially for smaller companies with limited human resources!