Whistleblower Law – Now the Mediation Committee Must Step In

The proposed whistleblower protection law has already sparked many heated debates. In early April, the Federal Cabinet decided that the Mediation Committee should now find a solution.

Background
The proposed whistleblower law, officially known as the “HinweisgeberschutzG,” is intended to reduce the risk for people who draw attention to misconduct within their company or government agency. The primary reason for the draft law is the implementation of an EU directive. Germany is already significantly behind schedule: the EU directive should have been implemented by the end of 2021. Now, over a year later, Germany faces financial sanctions. The Bundestag had already passed a draft bill, but it failed in the Bundesrat in February 2023. The second attempt, which sought to circumvent the need for approval in the Bundesrat by splitting whistleblower protection into two separate laws, was removed from the Bundestag’s agenda at short notice on March 30, 2023.

Referral to the Mediation Committee
On April 5, 2023, the Federal Cabinet decided to refer the matter to the Mediation Committee. Its role is to propose compromises to the Bundestag and the Bundesrat. It is not authorized to enact changes to the law. The Mediation Committee’s proposals must be accepted by the Bundestag or the Bundesrat through a resolution.

What happens next?
Once the committee has issued a recommendation, the Bundestag and Bundesrat are required to reconsider the draft bill and vote on it. It is difficult to say how long this process will take, as there are no legal guidelines for it. If the recommendation fails to secure a majority in the Bundestag’s Mediation Committee, the bill has definitively failed even on its second attempt. In this case, it would have to be reintroduced into the parliamentary process for a third attempt. One thing is clear: the longer the reconciliation process drags on, the more likely EU sanctions become.