Internal vs. external reporting offices: Advantages and disadvantages at a glance

The Whistleblower Protection Act brings new challenges for companies in Germany. Since July 2023, larger companies have had to set up secure reporting channels. This regulation serves to Whistleblowing and strengthens the Compliance management. Companies are faced with a choice: internal or external reporting offices?

Internal reporting offices can be staffed directly within the company or by ombudspersons. External reporting offices are run by Authorities operated. Both options have their special features when it comes to Combating corruption. The right choice depends on many factors.

Important findings

• The Whistleblower Protection Act valid since July 2023
• Companies with 250 or more employees must set up reporting channels
• From December 2023, this will also apply to companies with 50 or more employees
• Whistleblowing strengthens the Compliance management
• Internal and external hotlines have various advantages and disadvantages

Introduction to the Whistleblower Protection Act

The Whistleblower Protection Act represents an important milestone in German legislation. It aims to create an open Corporate culture and to uncover grievances.

Definition and objectives of the law

The law protects whistleblowers from reprisals and offers them legal certainty. It promotes the Confidentiality and Anonymity in the reporting process to create a secure environment for detecting misconduct.

Area of application for companies

The scope of the law extends to companies of different sizes:

Time frame for implementation

The law will be implemented gradually. Larger companies must act now, while smaller companies have more time. This allows for an appropriate adjustment of the Corporate culture and the establishment of necessary structures.

In addition to the protection of whistleblowers, the law also regulates the whistleblowing process. It attaches importance to Confidentiality and creates clear guidelines for dealing with reports. Companies are required to adapt their internal processes accordingly and promote a culture of open dialog.

The basics of whistleblowing

Whistleblowing is an important component of modern Corporate culture and Combating corruption. It describes the process by which employees or other persons uncover grievances in organizations.

Concept and meaning of whistleblowing

Whistleblowing refers to the reporting of misconduct or illegal practices within an organization. It is an important instrument for strengthening Compliance and integrity. Whistleblowers make a significant contribution to identifying and minimizing risks at an early stage.

The role of whistleblowers in companies

Whistleblowers play a central role in uncovering wrongdoing. They help to improve the corporate culture and promote ethical behavior. An effective Whistleblower system enables employees to express concerns confidentially without fear of reprisals.

Social relevance of whistleblowing

Whistleblowing is of great importance to society. It contributes to transparency and promotes trust in institutions. Well-known cases such as the Volkswagen emissions scandal show how important whistleblowers are for uncovering wrongdoing.

A well-structured Whistleblower system is crucial for the effective implementation of whistleblowing in companies and organizations. It protects both the whistleblower and the organization itself.

Internal vs. external reporting offices: Advantages and disadvantages

When implementing a whistleblowing system, companies are faced with the choice between internal and external reporting offices. Both options offer specific advantages and disadvantages that need to be carefully weighed up.

Internal reporting offices enable a quick and direct response to reports. They are deeply integrated into the company structure and have detailed knowledge of internal processes. This can lead to more efficient processing of reports.

External hotlines, on the other hand, score points with their Independence. They are outside the corporate structures and offer whistleblowers a higher degree of transparency. Confidentiality. This can strengthen employees' confidence in the reporting system.

A special form of external reporting office is the Ombudsperson. These are often lawyers who offer additional benefits such as Legal expertise and professional law Duty of confidentiality bring along.

The decision between an internal and external reporting office should be made on the basis of the individual company situation. It is important that the chosen system guarantees confidentiality and enjoys the trust of the employees.

Structure and function of internal reporting points

Internal reporting offices are an important component of an effective whistleblowing system. They play a central role in the Compliance management and help to uncover abuses. The establishment of such hotlines requires careful planning and clear structures.

Organizational integration in the company

The internal reporting office must be positioned in such a way that it can act independently. It is often assigned to the Compliance-department or directly to the management. This ensures the necessary authority and confidentiality when dealing with sensitive information.

Responsibilities and competencies

The tasks of an internal reporting office are varied. It receives reports, checks their validity and initiates the necessary steps. To do this, it needs comprehensive skills and access to relevant company information.

• Receipt of messages
• Checking the notes
• Initiation of follow-up measures
• Communication with whistleblowers

Whistleblowing process

The processing of reports follows a structured process. Once a report has been received, it is checked for relevance. If there are grounds for suspicion, further investigations are initiated. The confidentiality of the whistleblower has top priority.

From 2025, companies will also have to offer anonymous reporting channels. This places new demands on the Whistleblower system and requires special technical solutions to maintain the Anonymity.

External reporting offices: Structure and mode of operation

External reporting offices play an important role in the whistleblower system. These bodies Authorities These contact points offer whistleblowers an alternative to internal reporting channels.

The Independence external reporting offices is a key advantage. They are not subject to any conflict of interest and can process reports neutrally. The Privacy has top priority.

The procedure for external reporting offices follows a structured process:

• Confirmation of receipt within seven days
• Feedback after three months (six months for complex cases)
• Possibility of obtaining information from affected persons, employers and Authorities
• Forwarding to responsible offices if required
• Informing the whistleblower about the conclusion of proceedings

External reporting offices work closely with various authorities. This networking enables complex cases to be processed effectively.

The choice between an internal and external reporting office lies with the whistleblower. Both options offer protection and help to uncover wrongdoing.

Legal aspects when choosing the registration office

The Whistleblower Protection Act forms the legal basis for dealing with whistleblowing in companies. It defines clear rules for internal and external reporting offices in order to protect whistleblowers and ensure confidentiality.

Legal requirements for internal reporting offices

Internal reporting offices must adhere to strict data protection guidelines. They may not pass on any information to unauthorized third parties and must protect the identity of the whistleblower. The confidentiality of the reporting process is paramount.

Legal framework for external reporting offices

External reporting offices are also subject to strict confidentiality rules. They must work independently and must not have any conflicts of interest. Their task is to examine reports neutrally and, if necessary, forward them to the relevant authorities.

Protection of whistleblowers from reprisals

A central point of the Whistleblower Protection Act is protection against retaliation. Employers must prove that measures taken against an employee are not related to a report. This reversal of the burden of proof strengthens the position of whistleblowers and promotes an open corporate culture.

"The law creates legal certainty for whistleblowers and companies alike."

The legal requirements aim to strike a balance between transparency and Privacy to create. They encourage employees to report grievances without fear of negative consequences.

Confidentiality and data protection in the reporting process

The protection of whistleblowers is at the heart of the reporting process. Confidentiality and data protection play a crucial role here. Both internal and external reporting offices must adhere to the highest standards in order to protect the identity of those involved.

The Duty of confidentiality applies to all information that could allow conclusions to be drawn about identities. This applies not only to the whistleblower themselves, but also to named persons and companies. This data may only be passed on in exceptional cases, such as in the case of information rights under criminal law.

From 2025, companies must offer reporting channels that Anonymity guarantee. This strengthens the trust of employees and promotes an open corporate culture. Anonymous reports make it possible to uncover grievances without having to fear personal consequences.

Adherence to these principles is crucial to the success of the whistleblowing system. Only if employees have full confidence in the process will they be willing to share important information and thus contribute to the improvement of the company.

The role of ombudspersons in the whistleblower system

Ombudspersons play an important role in the whistleblower system. They act as a neutral point of contact for employees who wish to report grievances. Their task is to receive reports and process them confidentially.

Definition and tasks of an ombudsman

An ombudsman is an independent person of trust. He listens to complaints, mediates in conflicts and forwards information to the responsible bodies. He always maintains confidentiality and protects the identity of the whistleblower.

Advantages of involving external ombudspersons

External ombudspersons offer the advantage of independence. They are not integrated into the company structures and can examine reports impartially. This strengthens employees' trust in the reporting system.

Lawyers as ombudspersons: Special advantages

Lawyers act as ombudspersons Legal expertise with. They can legally classify information and recognize potential risks for the company. Their professional duty of confidentiality offers additional protection for whistleblowers and companies.