Whistleblower systems are channels through which employees can report misconduct or problems within the company.
To better protect whistleblowers—particularly in the workplace—the European Parliament’s EU Whistleblower Directive 2019/1937 is being transposed into national law. On December 16, 2022 , the Bundestag passed the Whistleblower Protection Act (HinSchG), which will take effect on July 2, 2023. This means that companies and organizations with 50 or more employees are required to establish internal whistleblower systems. Companies with more than 250 employees are required to comply without a transition period. Companies and organizations with fewer than 250 employees have until December 17, 2023.
Submitting Anonymous Tips
A significant change to the law concerns the handling of anonymous reports.
Accordingly, reporting offices are required to investigate anonymous tips. This requires anonymous communication between whistleblowers and reporting centers, which can be implemented using digital whistleblower systems with the appropriate range of features.
Anonymous reports submitted through digital whistleblower systems are valuable to companies because they are easy to use. The anonymity of whistleblowers is protected; they receive a high level of protection and need not fear retaliation. This increases the likelihood that companies will uncover corporate violations.
Whistleblower systems are channels through which employees can report misconduct or problems within the company. To better protect whistleblowers—particularly in the workplace—the European Parliament’s EU Whistleblower Directive 2019/1937 was transposed into national law, which took effect on July 2, 2023.
As of December 17, 2023, small and medium-sized enterprises are now also required to implement this regulation.
Why Companies Can’t Do Without Whistleblower Systems
Whistleblowers must be able to report misconduct verbally, in writing, or in person. The internal reporting office must confirm receipt of the report to the whistleblower within seven days and provide the whistleblower with feedback on the measures taken within three months.
While reports of potential crimes or violations submitted through whistleblower systems are of great value to companies, associations, clubs, and municipalities even in the absence of a legal obligation, the Whistleblower Protection Act stipulates that reporting offices must also accept and process anonymous reports. By offering an anonymous whistleblower system, you build trust among your employees and lower the barriers to submitting important reports. This can significantly reduce a company’s reputation and liability risks. However, it also means that a system for anonymous communication between whistleblowers and reporting offices must be established. Group-wide central reporting offices are also possible.
Expert Opinions on Responsibilities, the Law, and Opportunities
Request a demo date and additional information
Schedule a demo and request more information
