The long-awaited German Whistleblower Protection Act, also known as 'Hinweisgeberschutzgesetz', is finally set to come into effect in June 2023. This comprehensive guide will help you understand what this means for your business and how to prepare for it.
After a series of delays, the German Whistleblower Protection Act received approval from the Bundesrat on May 12, 2023. The Act, which underwent a series of negotiations in the Mediation Committee, is now expected to be enforced by mid-June 2023.
Businesses in Germany with more than 249 employees must immediately comply with the Whistleblowing Directive. This involves setting up a whistleblowing system that allows internal or external employees, customers, or other affiliated persons to raise concerns within your company. This whistleblowing system must meet high security and confidentiality standards.
By December 17, 2023, all companies in Germany with over 50 employees must also have a whistleblowing system in place. Non-compliance with the Act could result in a maximum fine of €50,000.
Actions for your business
DataGuard offers a comprehensive whistleblowing solution that combines market-leading software from EQS Group with the support of our in-house compliance experts. We can help you set up a whistleblowing system that meets all the renewed law requirements within one week.
Watch a demo of DataGuard’s Whistleblowing solution here:
Legal Background
The Whistleblowing Directive (EU 2019/1937) aims to provide better protection for whistleblowers across the EU. Unlike regulations like the GDPR, EU directives must be transposed into national law by the member states.
The deadline for implementing the Whistleblowing Directive expired in December 2021, but it took the Federal Republic of Germany over a year to take action. In the lead-up to the German Whistleblower Protection Act coming into force, the Bundestag passed a corresponding bill on December 16, 2022, which the Bundesrat failed to approve on February 10, 2022.
The weeks that followed were marked by talks between the parties and an attempt by the government to make two laws out of one. A final decision was not reached until May 2023.
Conclusion
Understanding and complying with the German Whistleblower Protection Act is crucial for businesses operating in Germany. Your business can successfully navigate this new legislation with the right guidance and resources.
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