With a delay of almost one and a half years, the German legislator has implemented the so-called Whistleblower Directive (Directive (EU) 2019/1937) into German law: In mid-December 2022, the German Bundestag had passed the Whistleblower Protection Act (Hinweisgeberschutzgesetz – HinSchG) in the version proposed by the Legal Committee. The Bundesrat did not approve the law in February 2023. However, on May 12, the Bundesrat has now approved the bill after the original bill was amended in the mediation committee. The law will enter into force in mid-June 2023.
Companies must now immediately review the implementation of whistleblower systems. Failure to do so could result in heavy fines.
What is at Stake?
In the past, German law did not provide any specific protection for whistleblowers or rules on how companies should deal with reports of violations of the law. There was only a ban on disciplinary action: the employer was not allowed to discriminate against an employee by any agreement or measure if the employee exercised his or her rights in a lawful manner. This included reporting violations of the law. However, reports by employees to the press or to authorities about (alleged) violations and grievances against the employer could also lead to dismissal.
The Directive and its implementation in the HinSchG are now intended to provide better protection for whistleblowers who report violations of laws and regulations. This is to be ensured by internal reporting bodies within...
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