Employee threshold
The employee threshold determines the number of employees from which a company is obliged under the German Whistleblower Protection Act (HinSchG) to set up and operate an internal reporting channel.
The German Whistleblower Protection Act (Hinweisgeberschutzgesetz, HinSchG) links the duty to establish an internal reporting office to the number of people employed by the company. Under Section 12 (1) and (2) HinSchG, the decisive threshold is generally at least 50 employees. Companies with 50 to 249 employees had to set up an internal reporting office by 17 December 2023, whereas companies with 250 or more employees were already obliged from the moment the Act entered into force. Employers with fewer than 50 employees are in principle exempt from the obligation to establish a reporting office.
To determine the headcount, the definition of employee in Section 3 (8) HinSchG applies. It covers employees, persons in vocational training and civil servants; what counts is generally the headcount (per-capita count), not the conversion into full-time equivalents. Irrespective of the threshold, special sector-specific obligations apply to certain industries, such as investment firms, capital management companies or credit institutions, which may require a reporting office even without reaching the 50-employee mark.
The threshold is of considerable practical importance because it marks the central dividing line between obligation and voluntary action. Companies with 50 to 249 employees may, under Section 14 (2) HinSchG, operate a shared reporting office within a group or together with other companies in order to pool resources. If the threshold is exceeded and no reporting office exists, fines may be imposed under Section 40 HinSchG. Employers should therefore review their headcount regularly, since subsequently crossing the threshold also triggers the obligation to set up a reporting office.
Legal Basis
Section 12 (1) and (2) HinSchG, Section 3 (8) HinSchG, Section 14 (2) HinSchG
Practical Example
A mid-sized mechanical engineering company employs 62 people on annual average, including several apprentices and part-time staff. The compliance officer counts all employees and apprentices on a per-capita basis and finds that the threshold of 50 employees has been exceeded. She therefore sets up an internal reporting office with a confidential reporting channel, appoints an independent responsible person, and documents the headcount calculation so that compliance with the obligation can be demonstrated to supervisory authorities.