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Whistleblowers and whistleblower protection law

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Whistleblower Protection Act (HinSchG)

Overview of the HinSchG

Legal protection for whistleblowersis an important component ofoccupational safety. TheWhistleblower Protection Act (HinSchG)aims to protect individuals who, in the course of their professional activities, have obtained information about violations and report them. It requires companiesto establish secure channels for reporting misconduct and prohibits anyretaliation against whistleblowers. This protection is an essential aspect of occupational safety, as it promotes safety and integrity in the workplace.

Violations that can be reported

There are various types of violations that can be reported. Here are a few examples:

  1. Workplace safety violations: These can include unsafe working conditions, a lack of protective equipment, or inadequate safety measures.

  2. Discrimination and Harassment: If someone is discriminated against or harassed on the basis of gender, race, religion, sexual orientation, or other personal characteristics, this should be reported.

  3. Violations of environmental regulations: If a company violates environmental laws or regulations, this can be reported.

  4. Financial fraud or corruption: If there are indications of financial irregularities, fraud, or corruption, they should be reported.

  5. Violations of working time regulations: If employers violate working time regulations—such as requiring overtime without compensation or imposing unauthorized working hours—this constitutes a reportable violation.

  6. Abuse of power or position: If supervisors abuse their power to harass or discriminate against employees, this should be reported.

Obligations for businesses under the HinSchG

Since July 2, 2023, companies with at least 50 employees (counted by headcount) have been required to establish a whistleblower protection program.

Overview of Obligations Under the HinSchG

  1. Internal reporting channels: Companies must establishinternal reporting channelsthrough which whistleblowers can report violations. These channels serve as a point of contact for employees to report misconduct.

  2. Protection against retaliation: Companies may not retaliate against or treat whistleblowers harshly when they report violations. This excludes actions such as termination, written warnings, or transfers.

  3. Confidentiality and Identity Protection: Companies must ensure that the identities of whistleblowers remain protected and that their reports are treated confidentially.

  4. Employee Information: Companies must inform their employees about whistleblower protection and direct them to the internal reporting channels.

  5. Documentation and Reporting: Companies should document these reports and, where necessary, prepare reports to verify compliance with the law.

It is important for companies to take these obligations seriously in order to protect the rights of whistleblowers and ensure an ethical work environment.

Whistleblower Protection in the Workplace

Support from software tools

Example

Market leader in software tools:

https://whistleblowersoftware.com/de

Pricing structure for software tools: 

https://whistleblowersoftware.com/de/preisgestaltung

Disadvantages of software tools in whistleblower systems

  • If you simply implement a whistleblower system (e.g., Software-as-a-Service) in your company, you would also need to ensure that your employees have the necessary expertise.
  • Costly for "clean" companies with low reporting volumes.

Implementing whistleblower protection with a law firm

An example of a law firm specializing in whistleblower protection: 

https://anwaltliche-meldestelle.de/

Pricing structure for a law firm (example): 

https://anwaltliche-meldestelle.de/preise/

Advantages of engaging a law firm

  • No need to develop your own expertise
  • Expertly separating the wheat from the chaff. Identifying the legally permissible grounds for reporting.

Risks Associated with Inadequate Whistleblower Protection

Are you in charge of a company with more than 50 employees?

If you do not operate an “internal” reporting channel, a whistleblower’s only option is to contact the Federal Office of Justice (BfJ). In most cases, the BfJ will involve the public prosecutor’s office to investigate the allegations.

External online reporting portal:

https://www.bundesjustizamt.de/DE/MeldestelledesBundes/MeldestelledesBundes_node.html

Information from the Munich Chamber of Commerce and Industry

Here is what the Munich Chamber of Commerce and Industry has to say about this:

https://www.ihk-muenchen.de/de/Service/Recht-und-Steuern/Arbeitsrecht/Bestehende-Arbeitsverh%C3%A4ltnisse-K%C3%BCndigung-und-Sozialversicherung/whistleblower-richtlinie/

Text of the Whistleblower Protection Act

HinSchG – Text of the Act:

https://www.gesetze-im-internet.de/hinschg/BJNR08C0B0023.html

My conclusions on the implementation of whistleblower protection

An “internal” reporting office operated through a law firm is also beneficial for the company, as it does not immediately trigger a government investigation. 

My Price Research: Whistleblower Protection:

Software vs. Law Firm
Net annual cost

 

Example (1) 50–100 employees

Software tool €960.00

Law firm: €300.00 plus €25.00 per case,for a total maximum of €600.00

 

Example (2) 101–150 employees

Software tool €960.00

Law firm: €400.00 plus €25.00 per case, for a total maximum of €800.00

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Note: There are many providers in this market. This is not product placement.

My information provides a rough guide.

Research and find the right solution for your business.

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