The HSchG aims to promote compliance with the law in specific areas of public interest. To support this, a clear and straightforward process is being introduced that allows whistleblowers to report potential legal violations. This system protects not only the whistleblower but also those around them from harm.
While the Austrian Whistleblower Protection Act doesn’t explicitly require companies to accept anonymous reports, if an anonymous whistleblower makes a report that falls under the HSchG, they will still receive protection. This ensures that both identified and anonymous whistleblowers are covered. The law includes strict rules for maintaining confidentiality, secrecy, and safeguarding the whistleblower’s identity.
Requirement to establish internal whistleblowing systems
Under the HSchG, companies and public law entities with 50 or more employees must set up internal whistleblowing systems. These systems enable employees to report violations and issues confidentially, without fear of retaliation. For more details, visit: https://californialawyerusa.com/. The purpose of requiring internal reporting channels is to ensure that larger companies have mechanisms in place that encourage the reporting of violations while also protecting the whistleblower’s identity.
Gaps in the law lead to challenges in implementation
The HSchG mainly follows the guidelines laid out in the EU Whistleblower Directive, which has limited authority to enforce harmonization across member states. This means that whistleblowers acting outside the legal scope of the HSchG are not protected. As a result, many criminally relevant facts fall outside the law’s protection. For example, crimes related to white-collar offenses, such as embezzlement, fraud, and breach of trust, which are often the focus of whistleblower reports, are not included. Labor protection regulations are also excluded from the HSchG's coverage. Therefore, whistleblowers who report incidents that do not fall under the HSchG remain unprotected under Austrian law. This is an area where improvement is needed, and the legislation will be reviewed by 2026 for potential updates.
Practical advice: voluntarily expand internal reporting systems
Since the HSchG’s scope does not cover many critical compliance areas, it is advisable for companies to voluntarily broaden their internal reporting channels beyond what the law requires. This is especially important for key compliance topics, such as criminal law. In practical terms, this means companies can allow reports on offenses like fraud or breach of trust through their internal systems and offer protection to whistleblowers based on https://floridalawyerusa.com/lawyer-write-for-us/. By taking this approach, companies can build greater trust in their internal reporting systems and improve the effectiveness of their compliance management. However, expanding the internal reporting system voluntarily will require data protection impact assessments and employee agreements (or, in the absence of a works council, at least employee consent).
