JAPAN Law and Practice Contributed by: Shinya Tago, Atsushi Fukasawa, Hiroshi Iida and Landry Guesdon, Iwata Godo Law Offices
occurred or is about to occur in a business opera - tor’s organisation where said worker works; and • it meets the prescribed requirements (eg, the absence of malicious or wrongful purpose or, in the case of whistle-blowing to an administrative body, believing in the occurrence of the reportable fact and submitting a written document about the prescribed matters). The WPA was amended in 2025, introducing penal - ties for individuals who dismiss or discipline whistle- blowers for making public interest disclosures, con - sisting of imprisonment for up to six months or a fine of up to JPY300,000, and a fine of up to JPY30 million for companies that retaliate against whistle-blowers. However, these provisions are not yet in effect. Companies must establish a system to appropriately respond to whistle-blowing (an efforts obligation for companies with fewer than 300 employees). Detailed guidance on how business operators should establish whistle-blowing systems (Guidelines for Appropriate and Effective Implementation of the Whistle-Blowing System) has been issued by the CAA, together with commentaries on the Guidelines. The requirements include having the following in place: • a proper policy; • a helpline free from conflict; • disciplinary sanctions in case of breach of internal whistle-blowing rules; • rules prohibiting retaliation; • measures for ascertaining whether whistle-blowers are being treated inappropriately; and • rules dealing with confidentiality and leakage.
The fact that such an internal whistle-blowing system is established is not a safeguard. There are no special incentives for whistle-blowers. Many authorities accept anonymous reports, although anonymous reports have limitations, including details and credibility. 4.5 Cross-Border Defence Strategies When investigations occur across multiple jurisdic - tions, defence strategies are affected by factors such as differences in national legal systems (the existence of privilege, double jeopardy, plea bargaining, data protection, etc) and the impact of information sharing between authorities. This includes determining which country’s proceedings should be prioritised. 5. Key Trends and Future Outlook 5.1 The Year Ahead Important amendments to the CCP and WPA will come into force between 2026 and 2027 (the effec - tive dates are yet to be announced). The CCP will allow orders to be issued to the custo - dian of an electronic record to “transfer” such records, with penalties for non-compliance. The WPA will impose penalties on those who dismiss or discipline employees for making whistle-blower disclosures. It also adds provisions presuming that dismissals or disciplinary actions taken within one year of a whistle-blowing report were motivated by that report.
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