Compliance Consulting And Monitoring in Germany

Compliance systems and compliance monitoring are essential for four key reasons:

1. The relevant laws in Germany are more complex than ever and are constantly undergoing changes.
2. There is a trend towards holding directors and managers personally liable when a company fails to satisfy compliance requirements.
3. The financial pressures on directors and officers to meet short term financial goals makes it more tempting than ever to willingly ignore or turn a blind eye to business activities that are questionable or outright illegal. As a result, well-drafted, clear and easy-to-follow internal policies and procedures are essential.
4. It is good business practice - putting aside the regulatory obligations and the potential fines, any alleged or actual violation of a trade sanction or any other relevant law can result in an enormous loss of good will and significant reputational damage.

Key compliance issues related to German Employment Law include

• directives issued by the employer,
• whistleblowing systems,
• co-determination of the works council,
• agreements between works council and management,
• assertion of claims for damages against employees or executive bodies.

Complicating matters further, German employment law and social insurance law establish numerous additional guidelines and compliance regulations regarding, for example,

• anti-discrimination measures,
• employee assignments, 
• posting of employees,
• working hours,
• remuneration,
• social security law,
• employee data protection,
• occupational safety,
• operational co-determination,
• work permits and
• company pension schemes.

Failure to follow these laws and regulations can result in substantial liability and sanction risks for the company, the executive board and managing directors. A thorough compliance risk assessment is therefore indispensable.

We can assist with all aspects of compliance management. Our compliance services and compliance monitoring services include risk assessment, the drafting and introduction of compliance systems and ongoing training of employees. We can support you in writing manuals, checklists and guidelines for keeping your compliance systems up-to-date. We can also assist your firm as an external compliance management officer and help your company establish whistleblowing mechanisms to meet regulatory requirements.

If you have any questions regarding compliance management in Germany or would like to receive an offer for a tailor-made compliance management system, please get in touch with our legal compliance consultants so that we can discuss our services in more detail.