HinSchG — International Reporting Office
Cross-border reporting office solutions for international companies.
Definition
In multinational groups, internal reporting offices can be organised across national borders. The specific arrangement depends on the national implementing law of the country concerned; both Germany and Austria permit shared or outsourced solutions and specifically do not require a separate reporting office in every single subsidiary. In practice: a hybrid model with a local office and an international escalation level. In the HinSchG Kit: concept for an international reporting office.
Germany (HinSchG)
The obligation to set up and operate at least one internal reporting office follows from § 12(1) of the German Whistleblower Protection Act (HinSchG) and applies to every employer with as a rule at least 50 employees – not from § 14. § 14 HinSchG (organisational forms of internal reporting offices) expressly permits a third party to be entrusted with the tasks of the internal reporting office (§ 14(1)) – for example a central group office or an external service provider – and allows several private employers with as a rule 50 to 249 employees to set up and operate a joint reporting office (§ 14(2)). The individual employer then retains only the duty to take appropriate measures to remedy the breach and to provide feedback to the reporting person. A legally separate office for each subsidiary is therefore not required.
Austria (HSchG)
In Austria, the obligation to have an internal office from 50 employees onwards follows from § 3(1) in conjunction with § 11(1) of the Austrian Whistleblower Protection Act (HSchG) (HinweisgeberInnenschutzgesetz). The counterpart to the German rule on organisational forms is found in § 13(4) HSchG: companies may transfer the tasks of the internal office to a joint office, and third parties may also be entrusted with the tasks of the internal office. Group-wide joint or outsourced internal offices are therefore permissible under Austrian law as well.