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On the basis of the EU Whistleblower Directive (2019/1937), the Whistleblower Protection Act came into force in Germany on 2 July 2023 after a prolonged legislative process. This obliges all German companies with at least 50 employees to set up confidential and secure internal reporting channels (whistleblower systems) for their employees and, where applicable, external parties to receive reports of breaches of German and EU law. Furthermore, whistleblowers must be effectively protected against reprisals. Failure to set up a whistleblowing system and obstructing whistleblowers can lead to severe fines being imposed on the company or those responsible. Companies that do not yet have a whistleblowing system should therefore start implementing one as soon as possible.
Implementing the whistleblower system
Setting up and operating a whistleblower system raises a host of legal issues relating to compliance, employment law and data protection law. We are happy to assist you in analysing existing structures or implementing the necessary measures, including internal policies.
Digital tool
CMS offers fully digital whistleblowing software, enabling you to receive and deal with reports about compliance violations (for example involving corruption, competition law or discrimination) in a way that is both legally robust and anonymous.
Operating the whistleblower system
Once implemented, the digital whistleblower system must be maintained and monitored. On request, CMS will be pleased to provide a national or international team to handle operation of the whistleblower system on an ongoing basis.
Investigating reports
In addition to operating the system, the CMS Compliance team can provide support as needed for investigating reports of suspected breaches.
Instruction and training
Our experienced lawyers can assist you during implementation and operation. They can also provide support around designing and conducting regular instruction and training sessions for your staff to raise awareness of the requirements for handling reports in a legally compliant manner.
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