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Japan: Changes to Whistleblower Protection

By - - Employment Law, Whistleblowing, Workplace Culture

Japan has introduced amendments to its existing whistleblower protections.  These amendments will increase significantly the risks to employers of non-compliance.  Although the amendments are unlikely to come into force until sometime in 2026, employers would do well to start their preparations now, to ensure compliance well ahead of time.

The main changes

Criminality – Employers who dismiss or discipline whistleblowers for making reports now face fines of up to 30 million yen.  Individuals who do so, face fines of up to 300,000 yen or 6 months in prison.

Presumption – Any action taken against a whistleblower within 1 year of a report will be treated as retaliatory.  The burden of proof therefore falls on the employer to show that the action it has taken was not related to a whistleblowing report. It may be difficult for employers to meet this burden of proof if its HR processes and training are not adequate. 

Extension of protection – self-employed contractors (during and within one year of the end of a contract) will now also be protected from disadvantage, following a whistleblowing report.

Regulatory Authority – The Consumer Affairs Agency will have enhanced enforcement powers including the ability to demand reports, carry out inspections, issue warnings and impose criminal sanctions.   

Publicity – Employers will be required to publish their whistleblowing policies and procedures internally to ensure all employees are aware of them.

Whistleblower hunting – it will be forbidden for employers to make any attempt to discover the identity of a whistleblower, unless legitimate grounds to do so exist. 

Employer actions:

Employers would do well to make preparations for these amendments, sooner rather than later.

Suggested actions:

  • Understand the amendments and their implications for your business.
  • Review policies, codes of conduct, handbooks and internal processes and procedures, to ensure they match the new requirements.
  • Ensure all HR personnel, managers and other relevant staff are trained on whistleblowing rules and procedures, to reduce the risk of inadvertent non-compliance.
  • Ensure all employees are aware of the whistleblowing polices, their protections under the law and how they can make a whistleblowing report.     

This is a high-level general update only. Legal advice should be obtained on specific circumstances.

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