External Reporting Office: Everything entrepreneurs need to know
One External reporting office is an independent point of contact outside of organisations and companies. It enables whistleblowers to report breaches of legal regulations or other relevant wrongdoing without having to use internal structures. External reporting offices are a central component of the Whistleblower Protection Act and supplement company-internal reporting systems with a state-organised, neutral reporting channel.
The Federal External Reporting Office acts as a central contact point for whistleblowers who wish to report infringements of EU law. It offers various reporting channels and ensures that reports are processed confidentially and without risk of retaliation.
In the context of the Whistleblower Protection Act (HinSchG) a central external reporting office was established at Federal Office of Justice created: the Federal Reporting Office. It is primarily responsible, provided that the matters do not fall within the remit of the reporting offices at Federal Cartel Office or the BaFin fallen. Additionally, the federal states can set up their own external reporting offices for reports concerning their state or municipal administrations.
The federal reporting office is organisationally separate from the rest of the Federal Office of Justice's remit. It is obliged to Confidentiality of identity from the persons providing the information and the persons mentioned in the notification.
Their core responsibilities include the legal classification of incoming reports, assessing their validity, and deciding on appropriate follow-up actions. This notably includes forwarding them to the relevant authorities or requesting further information if necessary for clarifying the facts.
Furthermore, the External Reporting Office fulfils a Orientation and Information function. It provides information on reporting channels, protection mechanisms, and potential consequences of reporting, thereby contributing to the legally secure use of the whistleblowing system.
External reporting channels as part of modern compliance governance
External reporting channels are no substitute for internal ones Compliance structures, but supplement internal reporting channels, thereby forming part of a multi-stage governance system. For companies, this means not viewing whistleblowing systems in isolation, but embedding them into existing risk, compliance, and control processes. A clearly defined process for handling internal and external reports contributes to reducing legal risks and strengthening confidence in internal structures.
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Process for external reporting office: How does a report work?
Reports can be submitted electronically, in writing, by telephone or in person to the federal external reporting office. The reporting office will confirm receipt of the report within seven days at the latest.
If the reporting office is not responsible or cannot investigate the reported violation promptly, the report will be forwarded to the competent authority for prosecution, while maintaining confidentiality. If it is responsible, it will first check whether the reported violation falls under the Whistleblower Protection Act (HinSchG...falls es einen solchen Fall gibt und keine Ausnahmen von diesem Gesetz greifen. Sollte dies der Fall sein, untersucht sie die Glaubwürdigkeit der Meldung und leitet entsprechende Massnahmen ein.
This process is particularly relevant for companies because external reports are reviewed outside their sphere of influence, and this can result in official inquiries, audits, or actions.
What are the advantages of an external reporting office?
The Federal Office of Justice points out that an internal report should be considered if violations can be effectively addressed through this channel and no retaliation is to be expected. If these conditions are not met, the external reporting office provides a secure and Confidential alternative dar.
A significant advantage of external reporting channels lies in their institutional independence. Whistleblowers can contact a state authority without fearing internal conflicts of interest or a lack of neutrality.
Good to know The Frankfurter Allgemeine Zeitung reported that on average, around 90 reports were received by the external reporting office per month between July 2023 and April 2024. This figure highlights the practical relevance of external reporting channels alongside internal systems.
The Whistleblower Protection Act does not oblige companies to Receipt anonymous reports through internal channels. However, it also provides that anonymously submitted tips should be processed. If a company decides against this Anonymous internal reports, remains a relevant alternative channel for whistleblowers who wish to remain anonymous.
External notifications can pose several risks to companies. These include: * **Reputational damage:** Negative news or rumours circulating externally can harm a company's image and brand perception. * **Loss of competitive advantage:** Leaked information about new products, strategies, or financial performance can be exploited by competitors. * **Legal and regulatory consequences:** Incorrect or misleading external communication can lead to fines, sanctions, or legal action from regulatory bodies. * **Financial losses:** Negative market reactions to external news, such as stock price drops or reduced customer demand, can impact revenue and profitability. * **Operational disruption:** Inaccurate information or speculation can cause panic or confusion among employees, partners, or customers, leading to disruptions in operations. * **Security breaches:** External notifications might be a result of or lead to security incidents, such as data breaches, which have severe consequences.
External reports carry particular risks for companies, as they originate outside of the company's own control and management mechanisms. Unlike internal reports, the company no influence for the initial assessment or prioritisation of the matter.
The relevant risks include in particular:
- Loss of procedural sovereignty on the initial assessment of the notification
- Increased regulatory scrutiny, e.g. through official requests or audits
- Time lag, as further queries and information requests originate from external bodies
- Reputational risks, especially in matters of public relevance
From a business perspective, this highlights the importance of functioning Internal reporting processes (especially anonymous reports too), in order to pick up on clues early and avoid external escalations.
Internal or external reporting office: What are the differences?
Internal reporting offices are internal company systems that allow employees to submit tips confidentially or anonymously. Companies from 50 employees are obliged to set up appropriate internal reporting channels as of 17 December 2023.
When internal reports are made, their receipt, examination, and follow-up actions take place within the organisation. This allows for a early enlightenment and the internal resolution of infringements. Responsibility lies with either internally appointed, expert individuals or with external ombudspersons.
On a external notification The entire process – from receipt to assessment – takes place outside the company. The external reporting office can request information from affected persons, employers, third parties or authorities for clarification of the facts, as far as this is necessary.
For companies, this means that external reports are regularly accompanied by greater regulatory visibility and potentially greater external impact than internal notifications. Below we have summarised the main differences for you again:
|
Criterion |
Internal reporting office |
External reporting office |
|
Definition |
A system within an organisation that allows employees to report grievances confidentially or anonymously. |
An independent body that receives and processes reports of misconduct. |
|
Statutory obligation |
Companies with 50 or more employees have been obliged to set up internal reporting channels like these since 17 December 2023 under the HinSchG. |
Serves as an alternative or supplement to internal reporting offices. |
|
Reporting process |
The entire process of receiving and processing reports takes place internally: acceptance of reports, conducting internal investigations, and taking appropriate action. |
The entire process of report receipt and report processing takes place at the external reporting office: investigations and measures are carried out externally. |
|
Responsibility for notifications |
Either an internal person will be appointed, who must have the relevant expertise, or an external ombudsman will be appointed. |
The external reporting office is responsible and can request information from the affected persons, the employer, third parties, and authorities for clarification. |
|
Objective |
Protecting the integrity of the organisation and its employees through internal measures. |
Independent review of the report and, if necessary, initiation of external measures for problem resolution. |
Whistleblower Protection Act: What requirements apply to external reporting channels?
The Whistleblower Protection Act requires that external reporting offices carry out their duties professionally independent and be processed strictly separately from internal reporting offices. Persons entrusted with processing reports must receive regular training and must not hold positions that lead to Conflicts of interest could lead.
External reporting offices are obliged to annually anonymised activity reports to publish. The identity of whistleblowers and the persons mentioned in reports will remain protected.
What role do processes and software play in a company?
Even if external reporting offices are state-organised, companies bear the responsibility for clear internal processes when dealing with reports. This particularly includes the ability to systematically record internal reports, observe deadlines, and comprehensibly document follow-up actions. In addition, comparable preparations must be made if reports are forwarded to the company for comment via the external reporting office.
Digital whistleblowing systems LegalTegrity helps companies implement these requirements by creating transparent workflows, role-based access, and audit-proof documentation. From a business perspective, such systems reduce the risk of whistleblowers, due to a lack of trust or structure, going directly to the external reporting channel Choose.
Implementation in the Company: Why is Employee Information Crucial?
Businesses are obligated to inform their employees about internal and external Reporting options to inform. Furthermore, there is a significant vested interest in designing internal reporting channels in an understandable, accessible, and trustworthy manner.
regular exchange of information fosters Consciousness for reporting channels, protection mechanisms and responsibilities. They help to address concerns internally at an early stage and regulatory risks through External escalation to minimise.
External reporting office: Who can I specifically contact?
|
Belgium |
The Federal Ombudsman |
|
Bulgaria |
Bulgarian Commission for Personal Data Protection (CPDP) |
|
Denmark |
The National Whistleblower Scheme |
|
Germany |
Federal Office of Justice |
|
Estonia |
No reporting channel set up yet |
|
Finland |
Office of the Chancellor of Justice |
|
France |
|
|
Greece |
National Transparency Authority |
|
Ireland |
Office of the Protected Disclosures Commissioner |
|
Italy |
ANAC – National Anti-Corruption Authority |
|
Croatia |
Ombudswoman of Croatia |
|
Latvia |
|
|
Lithuania |
Republic of Lithuania General |
|
Luxembourg |
|
|
Netherlands |
House of Whistleblowers |
|
Austria |
Vienna State Reporting Office for EU Law Violations |
|
Poland |
No reporting channel has been set up yet |
|
Portugal |
Director of Public Prosecutions |
|
Romania |
The National Integrity Agency |
|
Sweden |
Swedish Economic Crime Authority |
|
Slovakia |
UPSVaR |
|
Slovenia |
Ministry of Justice |
|
Spain |
Independent Authority for Whistleblower Protection, A.A.I. |
|
Czech Republic |
Ministry of Justice |
|
Hungary |
The Office of the Commissioner for Fundamental Rights |
External Reporting Office – FAQ
(The male form used refers to all persons, regardless of gender.)
