For about six months, Germany has had a whistleblower law (Das Hinweisgeberschutzgesetz), implementing EU Directive 2019/1937 into German law. Although the deadline for implementing the legislation in Poland has long passed, the Polish legislator is still working on a draft of the relevant law. What is the relevance of the German regulations for Polish entrepreneurs?
Before Germany’s new whistleblower law came into effect, the courts were the main player in determining how to provide protection to those who report abuse or irregularities in companies. Due to differences in the assessments of different courts, this protection was not uniform and sufficient. Those who reported problems often faced negative consequences for them. Now, with the power of the new law, reporters can feel safer, confident that they will not face negative consequences after reporting. The new law also gives employers the tools to effectively respond to possible false reports and abuses. This is an important step toward ensuring a fair and safe work environment for all.
What exactly does the whistleblower law in Germany introduce?
Germany’s new whistleblower law marks a milestone in whistleblower protection. The regulation introduces strong protective measures, eliminating all possible retaliatory practices, such as bullying, disciplinary procedures or blocking opportunities for promotion within organizational structures. The company is threatened with claims for damages for such measures, unless it can prove that the adverse action against the employee was taken independently of the whistleblower’s report. In addition, the law provides for fines of up to €100,000 for obstructing reports, retaliatory practices and breaches of confidentiality.
In practice, the reported violations relate to labor law regulations.
The law requires German employers to provide a variety of communication channels for reporting a problem in writing or verbally. Employers are also required to guarantee whistleblower confidentiality. The communication channels should operate in a way that protects the identities of both the whistleblowers and the reported. In addition, an external communication channel has been established on the platform of the Federal Office of Justice (Externe Meldestelle des Bundes beim Bundesamt für Justiz), which employees can use independently of the communication channels operating in the company.
Implementation of the directive in Poland
Although the deadline for implementing the legislation in Poland passed in December 2021, the Polish law on the protection of whistleblowers is at the draft stage. However, there are voices coming from behind the scenes at the Government Legislation Center that the philosophy of the Polish law and the protection mechanisms for whistleblowers will be similar to those already in force in the German law.
German whistleblower law a business as usual
Polish entrepreneurs should be aware of the issues surrounding the German whistleblower law for several important reasons:
- Avoiding Repression and Crime:
Having a functioning whistleblower protection system in place can help identify and resolve problems within a company, as well as counter unethical practices and crimes. Whistleblowers are an important source of information about potential threats and abuses, including those related to contractors and the execution of long-term contracts.
- Organizational culture:
Protecting whistleblowers can be an important part of building a positive organizational culture. Nurturing a safe work environment where employees feel free to report potential wrongdoing can positively impact employee engagement and loyalty.
- Protecting the Good Reputation:
Effective management of whistleblower situations can help protect a company’s reputation. A transparent approach to problems and an effective response can build trust among employees, customers and other stakeholders.
- Accordance to Global Trends
Many countries and organizations around the world have already implemented regulations to protect whistleblowers, not just Germany. This will soon happen in Poland as well. Ensuring to comply with these trends can be important, especially for companies operating internationally.
Awareness and effective management of whistleblower issues are important for compliance, building a positive organizational culture and protecting a company’s reputation.
The law is not only an expression of concern for individuals who courageously report wrongdoing, but also an important step toward building an honest and responsible corporate society.
In Germany, we have noticed an increase in the importance of issues such as compliance, environmental protection, whistleblower protection and ESG for years. German entrepreneurs not only pay attention to ensure that the latest trends and requirements are met in their companies, but also often expect this from their counterparties. Having the right policy in place can be an important negotiating asset.
Dr. Dominik Wagner LL.M.
Rechtsanwalt i Partner, TIGGES Düsseldorf
Tomasz Baron LL.M.
Legal Advisor, TIGGES Katowice
Kamil Twardowski LL.M.
Lawyer, TIGGES Katowice
TIGGES Rechtsanwälte – Your experts for business law
The article appeared in the December issue of Business HUB.
Downloadable online version of the latest issue in polish version: HERE.