The Whistleblower Protection Act (HinSchG) – the German implementation of the EU Whistleblower Directive – came into force on July 2, 2023, and is now fully applicable. It aims to encourage people to draw attention to abuses in companies and public authorities and protects them from discrimination. What does this mean for your business?

Who is required to set up a reporting office?

Companies with 50 or more employees must establish and operate an internal reporting office. Businesses with 50 to 249 employees may use a shared reporting office with other companies. Smaller companies with up to 49 employees are generally exempt – unless they belong to one of the sectors listed below.

Regardless of the number of employees, the following are among the obligations that must be fulfilled:

  • Securities services company (Section 2 Paragraph 10 WpHG)
  • Data provision services (§ 2 para. 40 WpHG)
  • Stock exchange operator (Stock Exchange Act)
  • Institutions (§ 1 para. 1b KWG) and securities institutions (§ 2 para. 1 WpIG)
  • certain counterparties within the meaning of Regulation (EU) 2015/2365
  • Capital management companies (§ 17 para. 1 KAGB)
  • Insurance companies (§ 1 para. 1 VAG)

Who can provide information?

A broad group of people who have obtained information in connection with their professional activities, for example:

  • Employees and former employees
  • Job applicants and interns
  • Temporary workers
  • Suppliers, subcontractors and contractors
  • Self-employed and freelancers
  • Shareholders and supervisory board members
  • Board members and members of supervisory and management bodies

How can a notification be given?

Reports can be submitted via an internal or external reporting office:

  • orally (e.g. telephone hotline),
  • in writing (post or mailbox),
  • in text form (internet-based whistleblower system or email),
  • in person (meeting or video conference).

There is no obligation to allow anonymous reports; multiple channels can be combined. The reporting office does not have to be located within the company itself – it can be outsourced to external third parties such as reporting platforms or lawyers. In any case, confidentiality must be guaranteed.

Sanctions for non-compliance

Breaches of the HinSchG are treated as administrative offences and punishable by fines of up to €500,000. Failure to set up a reporting channel can be penalised with up to €20,000.

How can we help you?

As an external ombudsman, we set up the desired reporting channels for your company, receive all reports and process them according to the provisions of the HinSchG.

Lawyers acting as ombudspersons offer an advantage over purely internet-based providers: Confidentiality is significantly better protected, as the Federal Constitutional Court has set very high hurdles for searches of law firms. This provides better protection for whistleblowers.

We would be happy to provide you with further information directly – telephone: 069 95 96 45 14 · Email: roger@kressin-law.de