Important information on whistleblower protection

From 17 December 2023, companies with 50 or more employees will be obliged to set up an internal reporting office to protect whistleblowers. Companies in the financial and insurance sector are obliged to set up such a reporting office regardless of their number of employees.

Companies that have not yet set up such a reporting office and are subject to the obligation under the HinSchG should act as quickly as possible in order to avoid fines. Companies that do not comply with their obligation face fines of up to 20,000 euros. For companies with existing compliance structures, it is advisable to set up a central internal reporting office in order to pool resources and build trust in the reporting office. In order to encourage the use of internal whistleblowing systems, these should be transparent, easily accessible and confidential. Companies can also benefit from effective whistleblowing systems, as they can help limit economic damage and are also an important compliance tool.

In addition, companies with more than 1,000 employees must meet the requirements of the Supply Chain Act ("LkSG") from 1 January 2024 and set up a complaints procedure similar to the HinSchG. It is recommended that the internal reporting office under the HinSchG and the complaints procedure under the LkSG be combined and operated jointly.

The establishment of a whistleblower system is subject to works council co-determination. The works council's right of co-determination does not relate to the establishment itself, but only to the design of the system. Depending on the level in the group at which the whistleblowing office is set up, the group works council, the general works council or the local works council is responsible for exercising the right of co-determination.

We recommend that all affected companies take action now at the latest. It is not yet clear how intensively and quickly compliance with the provisions of the HinSchG will be reviewed.

We will be happy to answer any questions you may have and support you in implementing or adapting your systems!