TheWhistleblower Protection Act (HinSchG)is the German implementation of the EU Whistleblower Directive. It was promulgated in the Federal Law Gazette on June 2, 2023 and came into force on July 2, 2023.
The importance of whistleblowing
Whistleblowing plays a crucial role in exposing misconduct and abuse in organizations. Whistleblowers can help uncover serious problems that might otherwise go undetected. They can help uncover corruption, fraud, mismanagement and other forms of misconduct.
Aim of the law
The main objective of the Whistleblower Protection Act is to protect individuals who have obtained information about violations in the course of their professional activities and report them. The law prohibits any reprisals against whistleblowers and obliges companies to set up secure channels for whistleblowing.
Who can be a whistleblower?
The scope of persons protected under the HinSchG is broad and includes all natural persons who have obtained information about breaches in connection with their professional activities and report them. This includes:
- Employees, including employees who have already left the company, job applicants, interns, temporary workers
- Self-employed persons providing services, freelancers, contractors, subcontractors, suppliers and their employees
- Shareholders and persons in management bodies
Which violations can be reported?
Not every report of a breach of legal provisions is covered by the HinSchG. However, the scope of protection regulated under Section 2 HinSchG is very broad. Whistleblowers enjoy the protection of the HinSchG if they report violations of the following regulations:
- Violations of criminal law: This includes any criminal provision under German law.
- Violations that are punishable by a fine (i.e. administrative offenses) if the violated standard serves to protect life, limb or health or to protect the rights of employees or their representative bodies.
Obligation to set up a whistleblower system
In accordance with the Whistleblower Protection Act, the establishment of an internal whistleblower system is mandatory for
- Companies and public institutionswith at least50 employees.
- Municipalitieswith at least10,000 inhabitants.
The lack of an internal whistleblowing system can result in high fines. It is therefore important that the organizations concerned meet the requirements of the law and introduce a secure, internal whistleblowing system.
Conclusion
The Whistleblower Protection Act is an important step towards promoting transparency and accountability in companies and public authorities. It protects those who expose wrongdoing and promotes a culture of openness and respect for the law. It is an essential tool for strengthening integrity and accountability in our society. It is important that we all understand and respect the importance of whistleblowing and the rights of whistleblowers. Because ultimately, we all benefit from a society where transparency, accountability and integrity are upheld.
The Whistleblower Protection Act (HinSchG) is undoubtedly a milestone for transparency and integrity in companies and public authorities. However, in addition to the legal requirements, a digital mindset is also needed to create a truly open and modern corporate culture. Download our free e-book "Digital Mindset", in which we provide practical tips and examples of how digital transformation can be successfully shaped: https://passion4it.de/buch-digital-mindset/#book
