The Group Privilege in the HinschG Draft

The new Whistleblower Protection Act is coming soon. But many questions remain unanswered. One of them is the issue of "group privilege". We have compiled the most important facts on this special regulation.

What is the Group Privilege?

In the context of the Whistleblower Protection Act, group privilege means that corporate groups can offer a single reporting office for all their companies. As a result, this leads to a significantly faster, cheaper, and less effortful integration of such a system.

The Group Privilege in the Explanatory Memorandum

The explanatory memorandum in the draft Whistleblower Protection Act is very clear regarding group privilege.
In the explanatory memorandum to § 14 I HinSchG-E, it says:
“According to the group law separation principle, an independent and confidential office can also be established at another group company (for example parent, sister, or subsidiary company) as a “third party” in the sense of Article 8 Paragraph 5 HinSch-RL, which can also work for several independent companies in the group.”

According to this reasoning, a common reporting office for the entire group should be sufficient in Germany.

The European Union’s Position is Unclear

In contrast to the German legislature, the EU’s statements on the Whistleblower-RL are somewhat more indeterminate.
In a statement dated June 2, 2021, an internal central reporting office is considered unacceptable for companies with 250 employees or more. To what extent this also applies to external central reporting offices is not clear from the statement.

Although these statements are not legally binding, they are given high importance in the interpretation of standards and guidelines.

Conclusion on Group Privilege

Whether the HinSchG ultimately also meets the requirements of the EU remains to be seen. If the Commission believes that the law is not compatible with the directive, it will initiate infringement proceedings and, if necessary, refer the matter to the ECJ.

With a third-party solution like the whistleblower system from eagle lsp, you are always well advised. Our experts are always well informed and ensure that the whistleblower system meets legal standards.

As of: June 2, 2023