ARTICLE
31 March 2025

2024 WLG Whistleblower Guide: Japan

WL
World Law Group

Contributor

Ranked an Elite Global Network by Chambers and Partners, World Law Group is one of the oldest and largest international networks of independent full-service law firms, created to meet the legal needs of multinational companies. Founded in 1988, the network's founding firms had the foresight to see the growing need to service clients globally while understanding the value of local knowledge and insight.
Is there a law to protect whistleblowers? If so, which law?
Japan Employment and HR

Is there a law to protect whistleblowers? If so, which law?

Yes. The Whistleblower Protection Act (the "Act") protects whistleblowers.

Are companies legally obliged to introduce a whistleblowing system?

Yes.

If so, which companies must introduce a whistleblowing system (number of employees, turnover, sector)?

Any business operator that continuously employs more than 300 workers must introduce a whistleblowing system. Any business operator that continuously employs 300 or less workers must endeavor to introduce a whistleblowing system (Article 11, paragraph 3 of the Act).

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What forms can a whistleblowing system take (written, verbal, email, electronic tool)?

There are no specific regulations on the forms of whistleblowing systems. The business operator can take any forms such as telephone, fax, email, and website at its discretion. In any case, it is necessary to take appropriate measures to protect the confidentiality of whistleblowers (e.g., exclusive hotline number or email address).

When reporting to a government agency, in certain cases (e.g., when the whistleblower has no evidence), it may be necessary to submit a written report in order for the whistleblower to be protected.

Which reports must be permitted?

A whistleblower can report any of the "Reportable Facts" below as defined in Article 2, Paragraph 3 of the Act regarding the misconduct of the business operator (including its officers and subcontractors) for which the whistleblower has worked within 1 year prior to the date of the report..

(i)a fact of an occurrence of a criminal act under the laws listed in the Appended Table of the Act concerning the protection of the life and security of an individual; consumer interests; environmental conservation; fair competition; lives, personal security and property of citizens; and other similar interests ("Appended Table Laws"), or a fact constituting the grounds for an administrative fine provided for in the Act or Appended Table Laws; or

(ii)a fact constituting the reason for the disposition in the case where a violation of the disposition pursuant to the Appended Table Laws constitutes a fact listed in item (i) above.

Must anonymous reporting be guaranteed?

Yes.

Who must be able to provide information (only employees or also external third parties)?

An employee, dispatched worker, and officer of a business operator, as well as employee/dispatched worker/officer of subcontractors of the business operator, who has worked within one year prior to the whistleblowing can be a whistleblower to be protected under the Act.

Can companies rely on one centralized hotline or is it necessary to have one hotline for each subsidiary?

Generally, each company in the corporate group must establish a system for responding to whistleblowing, but it is possible to set up a hotline at a corporate group level, covering all companies in the corporate group. In this case, each company in the corporate group must state in its internal rules in advance that a hotline is established at a corporate group level, and each company in the corporate group must appoint for the responsible person for the whistleblowing response operation.

Can a whistleblowing system also be operated by an external body (e.g. consultant)?

Yes, the business operator may outsource the establishment of a point of contact to a third party, such as a consultant.

Are sanctions imposed for failure to introduce a whistleblowing system?

Yes. The Prime Minister may request a business operator to submit reports or issue advice, guidance, or recommendations when deemed necessary (Article 15 of the Act). If the Prime Minister issues a recommendation to a business operator that fails to introduce a whistleblowing system and the business operator receiving the recommendation fails to follow it, the Prime Minister may publicize the name of the business operator (Article 16 of the Act).

Originally published Nov 13, 2024.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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