Updated version – as of July 2026
Protection against retaliation: How companies can effectively protect whistleblowers
The Whistleblower Protection Act protects whistleblowers if the conditions of Section 33 of the HinSchG are met. For protected reports, in particular, the duty of confidentiality, the prohibition of retaliation and a claim for damages in the event of prohibited retaliation shall apply. The HinSchG contains three protective mechanisms:
Confidentiality of identity
Prohibition of reprisals
Entitlement to compensation for retaliation
Against protected advisers , targeted retaliation is prohibited. This also applies to threatening or attempting it. Not every disadvantageous measure is automatically a retaliation. Crucial are, in particular, the protection requirements of § 33 HinSchG and the connection between the report or disclosure and the disadvantage suffered.
Reprisals – a real threat for whistleblowers
All detrimental consequences experienced by a person as a result of a report are considered reprisals. These include dismissal, transfer, pay cuts, or more subtle forms such as exclusion and bullying. HinSchG expressly obliges companies to prevent such measures. Anyone who does not establish appropriate protective mechanisms jeopardises not only the legal compliance of their own actions but also employee trust into the integrity of the reporting process and trust in the company as a whole.
The Wirecard Case: A MExample of use lack of protection
The Wirecard scandal vividly illustrates the consequences that inadequate protection for whistleblowers can entail. Pav Gill, at the time Chief Legal Officer at Wirecard in Singapore, reported internal irregularities concerning balance sheet manipulation and potential money laundering violations. Instead of investigating, he was pressured, isolated, and ultimately forced to resign voluntarily, with the assurance of positive references. Otherwise, he faced immediate termination.
It is not possible to make a general assessment of whether the measures taken against Pav Gill would have been unlawful under the German Whistleblower Protection Act. In particular, the personal and material scope of application, the prerequisites for protection under § 33 HinSchG, and the connection between the report and the detriment would need to be examined. A digital reporting system could have offered a confidential channel and a regulated procedure, but does not guarantee protection against reprisals outside the system.
The Wirecard case impressively highlights the necessity of professional whistleblower systems, not only for the early detection of regulatory breaches but also for protection against economic damage and for maintaining social stability.
Learn in 5 minutes
Before you book a live demo appointment with LegalTegrity, you can get to know our software in just 5 minutes. Request our demo video to get an overview of all the system's important features and customisation options. You will receive the demo video via email.
Legal expertise as the basis for effective protection
The legally compliant implementation of the requirements of the HinSchG requires sound Legal advice. Expert professionals support companies in designing internal reporting channels in accordance with the law, defining clear guidelines, and training employees accordingly. Only through professional guidance can it be ensured that whistleblowers are protected and internal processes remain manageable.
From a recent case with one of our clients
Protection against retaliation does not end when the process in the reporting system is concluded. In practice, there are always cases where colleagues or superiors, in the course of investigating allegations, learn or at least suspect who made the report. Depending on the outcome, this can lead to the person being ostracised or remarks being made during changes in procedures such as: “You have all this to thank our whistleblower for. If you want to complain, then complain to colleague X.” Here, the reporting person is disadvantaged because they have exhibited behaviour that is legally desirable. Therefore, management must ensure that such disadvantages are stopped immediately in such cases. Otherwise, the risk of damages claims arises.
Between the duty to inform and the duty of care
Many organisations operate in a complex environment, balancing the legitimate interest in internal investigations with the obligation to protect whistleblowers. Confidential, transparent processes are therefore all the more important, as they also enable anonymous reports and ensure fair treatment. Only this builds the trust that is necessary for employees to openly address grievances.
The solution: Digital whistleblower protection with LegalTegrity
LegalTegrity's digital whistleblower software enables companies to support confidential, and even anonymous, communication and structured documentation. Law-compliant implementation also depends on clear responsibilities, suitable procedures, trained personnel, and the actual handling of potential reprisals.
Furthermore, LegalTegrity offers supporting materials for employee training and awareness, which are practical and tailored to the needs of medium-sized businesses. This way, whistleblower protection becomes not just a duty, but part of a responsible corporate culture.
Act now and strengthen trust
Protecting whistleblowers is more than a legal requirement; it's an expression of lived integrity. Companies that act proactively now not only avoid legal risks but also sustainably strengthen trust in their organisation.
With LegalTegrity, you're choosing a solution that combines security, efficiency, and legal compliance, turning compliance into an opportunity – for greater transparency, trust, and business resilience.
Summary
Companies are legally obliged to effectively protect whistleblowers from retaliation. The Whistleblower Protection Act (HinSchG) defines clear requirements: confidentiality, prohibition of retaliation, and the right to compensation. Anyone who fails to comply with these obligations risks not only legal consequences but also a massive loss of trust. The Wirecard case strikingly demonstrates the consequences of a lack of protection. Digital whistleblower systems like LegalTegrity can support confidentiality, communication, and documentation. Effective protection also requires appropriate organisational measures and consistent action outside the reporting system.
(The male form used refers to all persons, regardless of gender.)
