FAQ for the German Whistleblower Protection Act (HinSchG)
What is the German Whistleblower Protection Act?
The Hinweisgeberschutzgesetz (Whistleblower Protection Act, HinSchG) was passed by the German Bundestag and protects individuals who report misconduct or legal violations within companies or authorities.
It implements the EU Whistleblower Directive into German law and ensures that whistleblowers are protected from retaliation, such as dismissal or bullying. The law came into effect on July 2, 2023, and strengthens transparency and compliance within organizations.
You can find the full text of the HinSchG from the German Bundestag here.
To whom does the Whistleblower Act apply?
Initially, in 2023, the law applied to companies based in Europe with more than 250 employees.
From 2024 onwards, the scope of application was expanded to include European companies with more than 50 employees.
​​​​​​​What are the sanctions for companies that do not (correctly) implement the HinSchG?
Violations of the Whistleblower Protection Act can lead to significant fines.
Corporate leaders who prevent a report or communication, take retaliatory actions, or violate the confidentiality requirement can face fines of up to €50,000. In severe cases, such as preventing a report or violating confidentiality, the fine for the company itself can rise to up to €500,000.
Additionally, companies without a whistleblower system risk having reports sent to authorities or the public, which can lead to substantial reputational and liability risks.
How can companies implement the HinSchG?
Companies can implement the HinSchG by establishing an internal reporting system. The reporting channels must allow for the submission of reports verbally, in writing, or in person. Additionally, companies must ensure that the identity of whistleblowers remains confidential and that they are protected from discrimination.
​​​What are the first steps a company (especially an SME) should take to harmonise its practices with the HinSchG?
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Obtain solid information about the respective requirements
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Choose an appropriate system
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Set up an interdisciplinary project team
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Reach the target group: technically and linguistically
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Understand the formal requirements and implement them appropriately for the target audience
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Process messages not just internally but also communicate them effectively
What do the HinSchG and the LkSG have in common?
​​​​​​Appropriate complaints procedures are a core element of the due diligence obligations established by the LkSG. According to Sections 8 and 9 of the Act, every company must have a grievance procedure in place through which internal and external persons can inform the company of human rights or environmental risks or violations in its own business operations and in the supply chain. Companies can use an internal company procedure for this, participate in an equivalent external procedure or combine internal and external complaints procedures.
While developing the bizpando platform, we put great importance on two aspects from the very beginning:
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First, the whistleblowing solution must be usable for both large corporations and small businesses.
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Secondly, anonymity and an anonymous exchange of questions and information must be possible throughout the entire processing time.
We have implemented both in the whistleblower function "whistlehorn", which is an add-on of the bizpando platform. A company can either process the whistleblowing itself or commission a service provider to do so.​​​​​
How can SMEs ensure that they comply with the LkSG and the HinSchG without overstretching their resources?
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A digital system like bizpando that fulfils both requirements
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Train authorised persons and relevant employees before implementation, ensures efficiency during implementation
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Set limits, what can the organisation achieve - where is external support needed?
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Start implementation in good time, avoid time pressure
Short Facts of the German Whistleblower Protection Act
Full law text of the German Whistleblower Protection Act
Please click on the following button to then choose the text box of the HinSchG:
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Contact us
Address:
E-Mail:
contact[at]bizpando.com
bizpando AG
Bösch 21
6331 Hünenberg
Switzerland
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