Germany Implements Whistleblower Protection Law After Long Delay
After a delay of 1.5 years, Germany has finally implemented a whistleblower protection law. The law aims to protect whistleblowers who uncover misconduct by natural or legal persons and prohibits retaliation or reprisals. The law also includes a reversal of the burden of proof, meaning that the employer must prove that measures taken against an employee are not related to the discovery of grievances.
Internal and external reports are allowed and, in exceptional cases, disclosures as well. However, the whistleblower must have had sufficient reason to believe that the information reported or disclosed is true at the time of reporting. The reports must also relate to the employer or a business contact. The law requires companies to introduce a whistleblower procedure. Companies with more than 250 employees must set up an internal reporting office when the law comes into force in mid-June 2023.
Companies with at least 50 but fewer than 250 employees must meet the requirements by December 17, 2023. The law provides for comprehensive protection of the identity of the reporting person. However, there is no obligation to accept anonymous reports.
The law has come into force after Germany faced difficulties enacting legislation to protect whistleblowers, a problem faced by other EU member states as well. The legislative process was stalled in Germany after a veto by the Bundesrat which led to the mediation committee being called. The Bundestag and Bundesrat finally approved the law in mid-May 2023, which will come into force on July 2, 2023.
In conclusion, this law is a step towards protecting whistleblowers and encouraging individuals to come forward to report misconduct. However, it remains to be seen how effective this law will be in practice. Nonetheless, the comprehensive protection of the identity of the reporting person is a much-needed measure towards creating a safe environment for whistleblowers.
