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Whistleblowing

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Key Facts
  • Whistleblowing is the practice of disclosing grievances or illegal actions within a company or public authority.
  • The Whistleblower Protection Act (HinSchG), which came into force in 2023, creates a clear legal framework for whistleblowers.
  • Whistleblowers enjoy special protection against reprisals under labor law, especially in the case of admissible reports.
  • The HinSchG protects reports on violations of EU law and certain national legal areas, with certain limits.
  • Whistleblowing is also supported by freedom of expression under Article 5 of the German Basic Law, especially in the public interest.
  • Employers must establish internal procedures to address discrimination against whistleblowing employees and avoid fines.
  • Effective internal reporting systems promote transparency and a positive corporate culture to prevent breaches of the law.

Definition and social significance of whistleblowing Whistleblowing describes the practice whereby employees or insiders within a company or public authority disclose existing grievances, illegal actions or potential dangers. Typically, whistleblowers turn to internal compliance offices, external authorities or the public, especially when internal mechanisms for remedial action are not effective. Whistleblowing is of central importance to society, as it contributes significantly to the detection and prevention of breaches of the law and risks.

Legal background and the Whistleblower Protection Act (HinSchG) For a long time, whistleblowing was legally controversial, as employees had to expect sanctions due to their contractual duty of loyalty to their employer. The Whistleblower Protection Act (HinSchG), which came into force in 2023, now provides a clear legal framework. The law implements the EU Whistleblower Directive and obliges employers with 50 or more employees to set up internal reporting offices to which employees can turn in confidence.

Protection of whistleblowers under the HinSchG Under the Whistleblower Protection Act, whistleblowers enjoy special protection against reprisals under labor law. Dismissals or other discrimination in connection with an admissible report are invalid or prohibited under Section 36 HinSchG. The prerequisite for protection is that whistleblowers comply with the reporting channels provided for by law. This encourages employees to report grievances in good time and without fear of consequences.

Scope of protected reports and limits of protection The scope of protection of the HinSchG includes reports on breaches of EU law and certain areas of national law, for example in relation to corruption, data protection, tax offenses, environmental protection and occupational health and safety. However, whistleblowing is not permitted without restrictions. Reports must always be made in good faith, and unfounded or malicious reports are not subject to legal protection.

Whistleblowing in the context of freedom of expression (Article 5 of the Basic Law) In addition to statutory whistleblower protection, whistleblowing is also protected by freedom of expression under Article 5 of the Basic Law, particularly if there is a significant public interest in the information. In rulings such as “Heinisch vs. Germany”, the European Court of Human Rights has emphasized the protection of whistleblowers when they reveal abuses of public importance.

Legal obligations and risks for employers Employers are obliged to set up internal reporting procedures that function effectively and confidentially. Breaches of these obligations can result in fines. On the other hand, employers must also ensure that whistleblowing employees are not discriminated against or disadvantaged in order to prevent possible claims for damages.

Practical significance and prevention strategies The implementation of effective internal reporting systems and the open handling of whistleblowing make a decisive contribution to the prevention of legal violations and the promotion of a transparent corporate culture. Companies should actively focus on employee training and education in order to establish a climate of trust and responsibility.

Conclusion on the legal assessment of whistleblowing In summary, the Whistleblower Protection Act now provides a clear and protective legal basis for whistleblowing. It emphasizes the need for transparency and accountability within organizations and effectively protects employees who disclose wrongdoing, while at the same time obliging companies to create internal mechanisms to address such disclosures appropriately.

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