Navigating the new Whistleblower Law in Germany: Insights from Territory Manager Carsten Schönwald 

Today we met with Carsten Schönwald, Territory Manager at Whistlelink, to discuss the new whistleblower law in Germany and its impact on German organisations. Carsten has extensive knowledge and experience in the German-speaking markets and will provide valuable insights into the challenges that organisations may face when the new law is implemented.  

In our conversation, we will explore the most important aspects of the law, the importance of whistleblowing in today’s business environment, and how organisations can navigate the challenges of compliance.  

Can you explain the main provisions of the new whistleblower protection law in Germany? 

After several attempts, the German Whistleblower Law (‘Hinweisgeberschutzgesetz’) has finally been approved. The final amendments proposed by the Mediation Committee were accepted by the Bundestag and Bundesrat on 18 May 2023, and the law will come into force on 2 July 2023. The whistleblower law will apply immediately for companies with 250+ employees, while companies with fewer employees have until 17 December 2023 to implement the new law.  

The whistleblower law in Germany will cover all reports of “significant violations” in a work-related context, including criminal offences and certain administrative offences. However, violations of internal company policies are excluded from the scope of protection. As whistleblower protection is the core element, the law sets out a prohibition against retaliation, even if only attempted. To further protect whistleblowers, the law provides for a reversal of the burden of proof. Confidentiality of the protected persons’ identities must be maintained at every stage of the process. This will also protect anyone mentioned in a report from being exposed.  

What are the main challenges for German companies and organisations? 

For Germany, being situated in the centre of Europe with the headquarters of numerous international companies, it has been incredibly challenging to wait such a long time for the EU Whistleblowing Directive to be transposed. After this prolonged state of uncertainty, not knowing how the new law will affect business and what measurements to take, I am pleased to see that we are approaching a new law.  

While many EU Member States have already implemented new laws, many companies took a wait-and-see approach in Germany. Now that the Whistleblower Law is finally available in Germany, the time has come to make necessary adjustments in corporate units. 

What are the most common concerns or questions you hear from clients? 

Maintaining proper reporting channels is not new for larger organisations and is usually included in their ESG work. Smaller organisations often need advice on how to structure their reporting routines and create a framework around the reporting channel.  

What obligations do organisations have under the law, and what are the penalties for companies that do not comply with the law? 

All organisations with 50 or more employees must implement secure reporting channels and make them accessible. There is no obligation to facilitate anonymous reports, but companies are expected to process them.  

It must be possible to report in writing, orally or in person (at the whistleblower’s request), for example via an online platform, telephone, or other voice transmission. If an organisation receives a whistleblower report, the whistleblower must be notified that the report has been received within seven days. After three months, the company must provide feedback to the whistleblower on planned actions.  

If organisations fail to comply with the provisions of the German whistleblower law, they may face a fine of up to EUR 50.000.  

What kind of partnership does Whistlelink offer, e.g., for law firms wishing to cooperate? 

Many of our partners have chosen Whistlelink as their preferred reporting system and offer our system as part of their full-service solution. We are flexible and will try to co-operate in whatever way is most suitable for the partner. Feel free to reach out to discuss a custom solution for your company.  

Overall, the new whistleblower law in Germany is a significant step towards protecting whistleblowers and promoting a culture of transparency and accountability in organisations. While there may be challenges for companies to navigate, Whistlelink is here to offer support and partnership in implementing secure reporting channels and ensuring compliance with the law. Contact us today to learn more about how we can help your organisation. 

Interested in Whistlelink? Visit our Product and Checklist pages to learn more about the Whistleblower Law and how Whistlelink can help you get compliant.

Would you like to discuss a solution for your organisation? Please book a free demo of our system!