ESG News

Federal and state governments find compromise on German whistleblower law

May 9, 2023

Breakthrough after a long dispute over planned German whistleblower law: The representatives of the Bundestag and Bundesrat reached a formal compromise on the whistleblower protection law on May 9, 2023. This was preceded by a meeting on the night of May 5, in which amendments were made to the reporting channels for anonymous tips, fines, and the scope of the law.

The law is intended to protect employees who report wrongdoing in their company from negative consequences.

What has happened so far? After the German Bundestag had voted for the whistleblower protection law in December 2022, the Bundesrat stopped the initial bill this February. To enable the implementation of a major part of its plan without the consent of the Bundesrat, the coalition government then divided its proposal into two laws. The compromise now reached replaces the two previous bills.

NEXT STEPS: The law is to apply already from mid-June. According to the law, companies with at least 250 employees must set up their own whistleblower systems within three months of the law coming into force. Companies below the threshold, with a minimum of 50 employees, reportedly have time until December.

Source: Handelsblatt, Bundesrat

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