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5 to 12 for managing directors: reporting channel obligation under the Whistleblower Protection Act

Note: This article has been machine translated and may therefore contain translation errors.

A contribution from

Alexander Brittner, LL.M.

Salary Partner, Attorney at Law

Topics and keywords

From December 17, 2023, companies with 50 or more employees are obliged to provide a whistleblower protection system in the form of a reporting channel. Otherwise there is a risk of liability claims and fines.

We explain the background below and provide you with an entry-level solution for €50 per month.

Whistleblower protection from 17.12.2023

The Whistleblower Protection Act will be the unsurprising content of the Advent calendar door on 17.12.2023. In addition to the need for action at very short notice, the consequences also include the threat of liability for managing directors and conceivable fines in the five-figure range.

Particular attention should be paid to the obligation to set up a reporting channel, which will apply to all companies with more than 50 employees in future. This is where companies need to act.

The reporting channel is intended to enable whistleblowers to report violations of the law and grievances within the company. Although this internal interface is inconvenient, it makes more sense than reporting directly to an authority.

Above all, whistleblowers should be given the opportunity to report their findings to the company via an easily accessible, anonymous reporting channel. Employees usually discover grievances much earlier than the management. However, the channel is also open to third parties such as suppliers and service providers. In the end, the company benefits from these findings and can clarify the issues itself or optimize business processes.

Specifications for the message channel

The reporting channel must lead to an independent, competent internal or external body. The management itself would therefore not be eligible for this.

A text or verbal (e.g. telephone) report must be made possible. In addition, the whistleblower must be informed at all times about the procedure and their rights (e.g. data protection). The law also stipulates that the receipt of reports must be confirmed within seven days, queries must be possible, follow-up measures must be taken and a final report must be made to the whistleblower within three months.

In view of the new workload, we provide you with a legally compliant, cost-effective solution:

Our entry-level package provides you with an independent, web-based reporting channel that is easy to implement and does not interfere with normal operating procedures. A link on the company website would indicate this.

Cost: 50 € per month.

Conclusion

The introduction of the Whistleblower Protection Act opens up many opportunities for companies to optimize business processes after violations have been identified at employee level. Liability and fines can also be avoided. Talk to us if you need support. It is time to act.

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