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Increasing reporting numbers show growing importance of whistleblowing directive

Relevance of whistleblowing is reflected in reporting figures

Since the Whistleblower Protection Act (HinSchG) came into force in July 2023, the number of reports to the federal external reporting office, which is located at the Federal Office of Justice (BfJ), has increased significantly. A total of 42 reports were registered in the first month alone. By December 2023, the number of monthly reports rose to 112. In the period from July 2, 2023 to December 31, 2023, a total of 410 reports were received by the federal external reporting office.

The trend will continue in 2024. In the first two months, 279 reports were already recorded. For current figures for 2024, we will have to wait for the latest annual report from the BfJ. The new report will provide further information on the number of reports and the number of Advisory services in relation to the reports of violations made included. 

Overview of the Whistleblower Protection Act

The HinSchG, also known as the Whistleblower Act, requires companies to set up internal reporting points. This regulation has applied since July 2023 to companies with more than 250 employees and since December 17, 2023 also to small and medium-sized companies with 50 to 250 employees.

Internal reporting points are the heart of whistleblower protection. Companies have several options for implementing this structure: through an internal individual or department, or through external service providers or ombudspersons. Affected companies or the reporting point used must adhere to strict procedures when processing reports and, in particular, ensure confidentiality.

Regarding the specific requirements of the HinSchG as well as all relevant structures and obligations, we refer to our Blog post from October 24, 2023 out.

Consequences of the lack of an internal reporting point

If no internal reporting office has been set up, this can be reported to and checked by an external reporting office. According to the BfJ, in these cases it is possible that the external reporting office, as a follow-up measure in accordance with Section 29 Paragraph 1 HinSchG, requests information from the company concerned to check the validity of the report or contacts the employer in accordance with Section 29 Paragraph 2 No. 1 HinSchG.

significance for affected companies

The number of reports to the BfJ shows that the Whistleblower Protection Act is directly relevant for companies and that reporting options are being used. In this respect, the reports to the external reporting office are an indication of the number of internal company reports and, accordingly, any company could be affected by whistleblowing. This requires increased attention to compliance and the proper processing of reports. Companies must take the establishment and management of their reporting systems seriously in order to avoid legal consequences. In addition, the topic of the whistleblower reporting office is becoming increasingly relevant, especially in the area of ​​governance, through sustainability reporting within the framework of the Corporate Sustainability Reporting Directive (CSRD).

Moore TK All-in-One approach for compliant whistleblower protection

With our Moore TK all-in-one approach, we offer you a simple and clear system for receiving reports in accordance with the Whistleblower Protection Act. With our Whistleblower Channel, we provide you with a complete solution that includes both setting up the whistleblower system and operating the internal reporting office as a managed service. We take care of implementing a turnkey reporting system that can be used worldwide with real-time statistics and dashboards in your own branding, as well as the subsequent support and initial assessment of incoming reports. 

If you want to learn more, visit our solution whistleblower softwareHere you can book a non-binding demo appointment with us.