Bundestag and Bundesrat have given the green light for the Whistleblower Protection Act to better protect whistleblowers. The law is expected to come into force in June 2023.
With the Whistleblower Protection Act, the EU Directive 2019/1937 on the protection of whistleblowers is implemented into German law. This also has implications in labor law. Because in addition to authorities and public organizations, employers must also establish a secure reporting system for whistleblowers, explains the business law firm MTR Legal Rechtsanwälte, which focuses its counseling on labor law.
After the Bundestag had already approved the Whistleblower Protection Act, the Bundesrat followed on May 12, 2023. Therefore, it is expected that the law will come into force in June.
The Whistleblower Protection Act affects companies with 50 or more employees. They must set up internal reporting systems for people who want to report breaches of Union law. The obligation to set up such reporting systems is staggered over time depending on the number of employees in the company.
Thus, companies with at least 250 employees must establish an internal reporting system within one month after the announcement of the law. Smaller companies with 50 to 249 employees have until December 17, 2023, for this. In addition, they have the option of setting up a joint reporting office with other companies. In doing so, the reporting systems must allow reports in written or verbal form. The originally planned obligation to follow up on anonymous reports has been removed from the law.
Employees can submit reports if they relate to violations in their own company or in other companies with which they are professionally involved. The reporting offices must acknowledge receipt of the report and keep the identity of the whistleblowers strictly confidential. Furthermore, they must take appropriate measures to clarify the facts. The federal states also have the option to establish external reporting offices in addition to the internal ones.
Through the Whistleblower Directive, reports of violations of European and national law are protected, provided they are punishable by fines or penalties.
Violations of the Whistleblower Protection Act can be sanctioned with fines of up to 50,000 euros. Consequently, companies with 50 or more employees are obliged to integrate a corresponding reporting system.
MTR Legal Rechtsanwälte assists companies in implementing legal requirements.
