Internal Investigation Procedure Template for Germany

An Internal Investigation Procedure outlines how German companies systematically examine potential misconduct, compliance breaches, or legal violations within their organization. It creates a clear framework for gathering evidence, conducting interviews, and documenting findings while respecting German data protection laws and worker participation rights (Mitbestimmungsrecht).

Following strict German labor regulations and the EU's GDPR requirements, these procedures help businesses maintain transparency, protect whistleblowers, and ensure fair treatment of all involved parties. They're especially crucial for companies subject to the Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz) and those needing to demonstrate proper corporate governance to authorities.

Your organization needs an Internal Investigation Procedure when suspicious activities or potential misconduct emerge within your German operations. Common triggers include employee complaints about fraud, reports of corruption, data protection violations, or supply chain compliance issues under the Lieferkettensorgfaltspflichtengesetz.

This procedure becomes essential during workplace accidents, financial irregularities, or when regulatory authorities request information. Having it ready before incidents occur helps protect your company's legal interests, ensures compliance with German labor laws, and maintains Works Council (Betriebsrat) relationships. It guides your response to whistleblower reports and helps prevent evidence contamination during time-sensitive investigations.

• Standard Corporate Investigations: Internal Investigation Procedures typically follow strict German workplace privacy laws while examining financial irregularities, compliance breaches, or misconduct
• Works Council-Aligned Procedures: Modified versions that specifically address Betriebsrat involvement and employee rights during investigations
• Industry-Specific Protocols: Tailored procedures for regulated sectors like banking or automotive, incorporating sector-specific compliance requirements
• Supply Chain Investigation Guidelines: Specialized procedures focusing on supplier due diligence under the Lieferkettensorgfaltspflichtengesetz
• Data Protection-Focused Procedures: GDPR-compliant investigation protocols specifically designed for digital evidence and IT systems

• Legal Department: Drafts and oversees the procedure, ensures compliance with German law, and coordinates with external counsel when needed
• Compliance Officers: Implement and maintain Internal Investigation Procedures, lead investigations, and document findings
• Works Council (Betriebsrat): Must be consulted during procedure development and specific investigations involving employee rights
• External Investigators: Specialized law firms or forensic experts who conduct independent investigations when required
• Management Board: Approves procedures and receives investigation reports, making final decisions on outcomes
• Data Protection Officers: Ensure investigation procedures align with GDPR requirements and German privacy laws

• Company Structure: Map out your organization's reporting lines, subsidiaries, and Works Council involvement
• Legal Framework: Review German labor laws, GDPR requirements, and industry-specific regulations affecting investigations
• Documentation Protocols: Establish systems for secure evidence collection and storage compliant with German privacy laws
• Stakeholder Input: Gather requirements from HR, Legal, Compliance, and Works Council representatives
• Communication Channels: Define clear reporting pathways and whistleblower protection measures
• Review Process: Create investigation timelines and approval stages aligned with German corporate governance standards

• Scope Definition: Clear outline of covered incidents, misconduct types, and jurisdictional reach within German operations
• Data Protection Measures: GDPR-compliant protocols for handling sensitive information and personal data
• Works Council Rights: Specific provisions for Betriebsrat involvement and employee representation
• Investigation Process: Step-by-step procedures, roles, and documentation requirements
• Whistleblower Protection: Confidentiality guarantees and anti-retaliation measures
• Evidence Handling: Chain of custody procedures and documentation standards
• Reporting Requirements: Clear guidelines for internal and regulatory reporting obligations

An Internal Investigation Procedure differs significantly from a Disciplinary Procedure, though they often work together in German organizations. While both deal with workplace issues, their purposes and implementation vary considerably.

• Primary Focus: Internal Investigation Procedures concentrate on fact-finding and evidence gathering across any potential misconduct, while Disciplinary Procedures specifically outline consequences and corrective actions for confirmed violations
• Timing and Sequence: Investigations typically precede disciplinary actions, establishing facts before any sanctions are considered
• Legal Requirements: Investigation procedures must comply with GDPR and German privacy laws during evidence collection, whereas disciplinary procedures focus on labor law compliance and Works Council rights
• Stakeholder Involvement: Investigation procedures involve broader stakeholder groups including external experts, while disciplinary procedures primarily involve HR, management, and affected employees