France passes whistleblower law: urgent need for German companies to act, says EQS Group

France passes whistleblower law: urgent need for German companies to act, says EQS Group

Munich, 1 March 2022: France has set the course for anchoring whistleblower protection in national law: On 16 February, the French parliament passed a law implementing the EU Whistleblowing Directive effective 1 June 2022. This means that one of Germany’s most important European trading partners now offers whistleblowers comprehensive protection when they report wrongdoing. EQS Group, the European market leader for whistleblower systems, believes that this also places an obligation on German companies to meet the requirements of EU Directive 2019/1937 – even if this is not yet required by German national law. However, the legislation is not likely to be long in coming, as the EU Commission is already pressing for rapid implementation with infringement proceedings.

France is the eighth EU state to implement the EU Whistleblower Directive – albeit with a delay. The deadline was set for December 2021: “The French whistleblower law is exemplary because it goes beyond the requirements of the EU Directive. Whistleblowers now also have legal certainty when they report violations of national law. Not only French companies should be guided by these high standards of ethical conduct, but also all companies outside France that have business relations with them, due to the closely interlinked economy in the European Union,” says Achim Weick, founder and CEO of EQS Group, who now also sees an urgent need for German companies.

Companies, public institutions and municipalities must establish reporting channels

The French whistleblower law applies to companies with 50 or more employees and public institutions and municipalities with 10,000 or more inhabitants. Among other requirements, those affected must establish a secure internal reporting channel. However, it is vital that these organisations not only comply with the minimum standards in order to avoid the threat of penalties. They should do everything possible to protect whistleblowers from dismissal or reprisals – this also includes not only ensuring the prescribed confidentiality of whistleblowers, but also allowing anonymous reports – in order to embed an ethical and strong compliance culture within their organisation.

Digital whistleblowing systems are best practice for preserving anonymity and reliability

While the legislator has refrained from defining exactly what this reporting channel should look like, digital whistleblower systems have established themselves as best practice because these are the only systems which fulfil all the requirements for secure, anonymous and GDPR-compliant communication: “The inhibition threshold of whistleblowers is very high, particularly before the first report, which is why companies and public administrations should opt for digital platforms that guarantee whistleblower confidentiality. The implementation of this digital reporting channel is quick and easy”, explains Viviane Joynes, Managing Director of EQS Group France, who, together with her team, supports French EQS clients in establishing whistleblower systems. These include the major bank Crédit Agricole, the automotive supplier Delfingen and the electricity company EDF Group.

About EQS Group:

EQS Group (www.eqs.com) is a leading international provider of regulatory technology (RegTech) in the fields of corporate compliance and investor relations. In working with EQS Group, thousands of companies worldwide inspire trust by fulfilling complex national and international disclosure obligations, minimising risks and communicating transparently with stakeholders.

EQS Group’s products are pooled in the cloud-based software EQS COCKPIT. They ensure the professional control of compliance workflows in the fields of whistleblower protection and case management, policy management, insider list management and disclosure obligations. In addition, listed companies benefit from a global newswire, investor targeting and contact management, IR websites, digital reports and webcasts for efficient and secure investor communications.

EQS Group was founded by Achim Weick in 2000 in Munich, Germany. Today the group employs more than 550 professionals and has offices in the world’s key financial markets.

Press contact:

EQS Group | Ulrike Dittmar | Ulrike.dittmar@eqs.com