Whistleblower Protection Act – What companies must now do

With the proclamation of the Whistleblower Protection Act (HinSchG) on June 6, 2023, a comprehensive law on whistleblowing has been introduced in Germany for the first time. Companies with at least 50 employees are now faced with the challenge of implementing a legally secure reporting office or hiring a third party to set up and manage the reporting office for the company. The timeline for this action varies depending on the size of the company:

– Companies with 250 employees or more must have the reporting office set up by July 2, 2023.
– Companies with 50 to 249 employees have until December 17, 2023 to do so.

Who does the Whistleblower Protection Act protect?

The law stipulates that individuals who, within the context of their employment or contractual relationship with a public client, point out irregularities and legal violations, are protected from disadvantages such as termination, relocation or discrimination. Employers must take appropriate measures to ensure that whistleblowers are protected and can feel safe to provide information. Hindering the provision of information can lead to a fine for the company.

What does a reporting office cost?

The most pressing question for a company these days is probably the cost. The legislator estimates the setup costs to be at least €12,500 for companies with 50 to 249 employees and €15,000 for companies with 250 employees or more. There are also annual costs for operating the reporting office, which are projected to be €5,772.

What happens if companies ignore the Whistleblower Protection Act?

Non-implementation of the HinSchG can result in a fine of up to €50,000.

What requirements must the reporting channel meet?

Reporting channels must allow reports in oral or text form. Anonymous reports should also be processed. However, there is no obligation to design the reporting channels in such a way that they allow anonymous reports to be made. The reporting channels must be designed in such a way that only the persons responsible for receiving and processing the reports have access to the incoming reports. If requested by the whistleblower, a personal meeting must also be facilitated for a report within a reasonable period of time. With the whistleblower’s consent, this meeting can also take place via video and audio transmission.

How important is the confidential submission of a report?

Due to the confidentiality requirement, information about the whistleblower and the person against whom the report is made may not be passed on beyond a specifically defined group of people. This means that the reporting channel cannot be co-managed by many employees, but a contact person must be appointed who processes all incoming reports alone. This person is either hired for this task or has to accomplish this task in addition to their main task.

The person appointed carries a lot of responsibility and must always consider and monitor the relevant deadlines.

What deadlines are important for the legally compliant implementation of the Whistleblower Protection Act and what needs to be checked when processing a report?

The reporting office must be continuously staffed, as the obligation to respond to the receipt of a report is only seven days. It must be ensured that the tasks and duties of the appointed person do not conflict with each other. In addition to contacting the whistleblower, it must also be checked whether the report falls under the protection of § 2 HinSchG. The extensive enumerative list in the HinSchG is a board of regulations, as it bundles many cross-references to Union legal acts and existing national regulations, making it difficult to penetrate even for lawyers.

Can companies outsource the operation of the reporting office?

Instead of implementing it independently, the HinSchG also allows the option to use an external agency. eagle lsp offers a complete solution consisting of a technically insured reporting office and 24/7 support by lawyers, so that companies can focus on their main tasks. The best news: The costs are significantly below those projected by the legislator.

If your company falls under the Whistleblower Protection Act, we should talk!

Get informed about the eagle reporting office service now.

Status: 06.06.2023