Introduction

The EU Whistleblower Protection Directive, which was adopted in October 2019, aims to protect whistleblowers from retaliation when they report breaches of EU law in the areas of public procurement, financial services, anti-money laundering, and data protection, among others. The directive requires EU member states to provide adequate and effective protection to whistleblowers who report breaches of EU law in the workplace. Companies are affected by the directive in several ways.

First, companies are required to establish internal reporting channels that allow whistleblowers to report breaches of EU law in a secure and confidential manner. This includes implementing systems and processes to ensure that whistleblowers' identities are protected, and that they are not subjected to retaliation.

Second, companies are obligated to investigate any reports of breaches of EU law and take appropriate measures to address the issue. This may include conducting internal investigations, taking corrective action, and notifying the relevant authorities if necessary.

Third, companies are required to provide information and training to employees on the importance of reporting breaches of EU law, and how to do so in a safe and secure manner. This helps to ensure that whistleblowers feel confident in reporting breaches of EU law without fear of retaliation.

Finally, companies that fail to comply with the provisions of the directive may be subject to administrative, civil, or criminal sanctions, depending on the circumstances and the jurisdiction. In addition, companies may also face reputational damage if they are perceived as failing to protect whistleblowers or not taking reports of breaches of EU law seriously

1. Why Use an External Reporting Channel?

Establishing an external reporting channel involves setting up a system that allows whistleblowers to report breaches of EU law outside of the company's internal reporting channels. This external channel provides an additional layer of protection for whistleblowers, as they can report incidents without fear of retaliation from their employer.

To establish an external reporting channel, companies can follow these steps:

1. Choose a reputable third-party provider: This could be a non-profit organization, a legal firm, or an online reporting platform that specializes in whistleblower protection.
2. Define the scope of the external reporting channel: Determine what types of incidents the external reporting channel will handle and the specific EU laws that apply.
3. Establish secure and confidential reporting mechanisms: Ensure that whistleblowers can report incidents anonymously and that their personal information is protected.
4. Train employees on the external reporting channel: Provide information to employees on how to use the external reporting channel and the importance of reporting incidents through this channel.
5. Promote the external reporting channel: Make sure that the external reporting channel is widely advertised within the company and that employees know how to access it.

Having an external reporting channel is beneficial for companies because it provides an additional layer of protection for whistleblowers, and helps to build trust with employees and other stakeholders. Additionally, it can also help companies to identify and address breaches of EU law more effectively, reducing the risk of legal and reputational harm. An external reporting channel can also demonstrate a company's commitment to transparency and integrity, enhancing its reputation and contributing to a positive company culture.

2. Benefits

Establishing an external reporting channel can be a straightforward process, especially with the help of specialized third-party provider like Talpa. We have expertise in whistleblower protection and we can guide companies through the process of setting up a secure and confidential reporting mechanism.

Once our external reporting channel has been established, whistleblowers can report incidents with the assurance that their personal information will be protected and that they will not be subjected to retaliation. We provide an additional layer of protection for whistleblowers, as our system allows them to report incidents without fear of retaliation from their employer.

It's important to note that establishing an external reporting channel is just one step in a larger process of protecting whistleblowers and ensuring that breaches of EU law are effectively addressed.

Companies must also establish internal reporting channels, provide training to employees, and have processes in place to investigate and address incidents that are reported through either channel.

Overall, establishing an external reporting channel like the one we offer can provide a safe and secure mechanism for whistleblowers to report breaches of EU law, and help companies to build trust and promote transparency and integrity.

3. Be Compliant!

Establishing the requirements for an external reporting channel is important in order to be compliant with the EU Whistleblower Protection Directive. The directive requires EU member states to provide adequate and effective protection to whistleblowers who report breaches of EU law in the workplace.

Failing to establish the requirements for an external reporting channel could result in non-compliance with the directive, and expose a company to legal and reputational risks. Companies may be subject to administrative, civil, or criminal sanctions, depending on the circumstances and the jurisdiction. In addition, companies may also face reputational damage if they are perceived as failing to protect whistleblowers or not taking reports of breaches of EU law seriously.

Therefore, it's important for companies to establish the requirements for an external reporting channel as soon as possible in order to be compliant with the directive and avoid any legal and reputational risks. Establishing an external reporting channel can help to build trust with employees and other stakeholders, and demonstrate a company's commitment to transparency and integrity

4. Implementation Under German Law

The Hinweisgeberschutzgesetz (HinSchG) implements the EU Whistleblower Protection Directive in German law. The law is expected to come into force in the first or second quarter of this year. The next plenary session of the Bundesrat is scheduled for 10 February 2023. If the Bundesrat approves the HinSchG in this session, the law can be promulgated in February 2023.

The HinSchG provides protection to whistleblowers who report breaches of EU law in the workplace, and aims to ensure that whistleblowers are not subjected to retaliation for reporting incidents.

The HinSchG requires companies to establish internal and external reporting channels for whistleblowers. The internal reporting channels must allow employees to report incidents to their employer in a secure and confidential manner, while the external reporting channels must provide whistleblowers with an additional layer of protection.

In addition to establishing reporting channels, the HinSchG also requires companies to provide information and training to employees on the importance of reporting breaches of EU law and how to do so in a safe and secure manner. Companies are also obligated to investigate any reports of breaches of EU law and take appropriate measures to address the issue.

The HinSchG provides significant protection to whistleblowers in Germany, helping to promote transparency and integrity in the workplace. Companies that fail to comply with the provisions of the HinSchG may be subject to administrative, civil, or criminal sanctions, depending on the circumstances and the jurisdiction. In addition, companies may also face reputational damage if they are perceived as failing to protect whistleblowers or not taking reports of breaches of EU law seriously

5. Conclusion

For most companies, there is an urgent need for action in order to fully comply with the legal requirements in a timely manner. Talpa will be happy to support you with the implementation in your company. We can guarantee the necessary confidentiality at all times.