Japan’s amended Whistleblower Protection Act is scheduled to come into force in December 2026. Among its various revisions, two changes are likely to have the most significant impact on corporate practice: first, shifting the burden of proof in civil proceedings; and second, introducing criminal penalties for retaliatory dismissal or disciplinary action.
Under the amended act, where a whistleblower is dismissed or subject to disciplinary action within a year of reporting, it will be presumed in civil proceedings that such action is because of the whistleblowing. Unless the employer successfully rebuts this presumption, the dismissal or disciplinary action will be deemed invalid. This provision is a significant departure from prior practice, effectively lowering the evidentiary threshold for employees while imposing a substantial evidentiary burden on employers.
The amendment also introduces criminal sanctions for dismissals or disciplinary measures taken in retaliation for whistleblowing. Individuals may face up to six months’ imprisonment or a maximum fine of JPY300,000 (USD1,880), while corporations may face fines of up to JPY30 million under dual liability provisions. The legislative objective is clear: strengthen deterrence against retaliation; enhance whistleblower protection; and promote the functioning of whistleblowing systems.
From a practical standpoint,...
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