Whistleblowing

In principle, companies that regularly employ 50 or more employees are obliged to set up an internal reporting system (section 12 (1), (2) HinSchG). For companies with between 50 and 249 employees, this obligation will only apply from 17 December 2023 (section 42 HinSchG).

For certain employers, particularly in the financial and insurance sectors or for data provision companies, the obligation to set up an internal reporting office applies irrespective of the number of employees as of the entry into force of the Act (section 12 (3) HinSchG).   

According to section 10 of the Law, in the private sector, natural and legal persons with 50 or more workers must establish internal information systems.

Moreover, irrespective of the number of employees, legal entities falling within the scope of European Union law regarding financial services, products and financial markets, the prevention of money laundering or terrorist financing, transport safety and environmental protection, referred to in parts I.B and II of the Annex to the Directive, will be governed by their specific regulation. In these cases, the Law will only apply to matters not covered by said specific regulations.

Political parties, trade unions, employers' organisations and foundations created by them, insofar as they receive or manage public funds, may also implement whistleblowing procedures.

Private-sector entities that do not need to establish internal information systems but decide to do so anyway must also respect the content of the Law.

According to section 13 of the Law, all public-sector entities must establish internal reporting channels.