Amendments to the Whistleblower law in Japan create new obligations, penalties and enforcement powers

At a glance

• Companies with over 300 employees must appoint a designated whistleblower response officer. Failure to comply may result in corrective orders, inspections, and fines.
• The revised law extends protections to freelancers under current or recently expired contracts, ensuring they are not disadvantaged for whistleblowing.
• To reinforce a safe reporting environment, the amendment prohibits unjustified attempts to identify whistleblowers and voids agreements that obstruct lawful reporting.
• New criminal penalties target retaliation in the form of dismissal or disciplinary actions. Individuals may face imprisonment or fines of JPY300,000, and companies can be fined up to JPY30 million. A presumption of retaliation applies to adverse actions such as dismissal or disciplinary actions within one year of a report.

Background to the changes

Japan has taken a significant step toward strengthening protections for whistleblowers with the passage of the 2025 Amendment to the Whistleblower Protection Act. Enacted and promulgated in June 2025, the revised law is expected to come into force before the start of 2027.
The amendment aims to address long-standing concerns about the effectiveness of whistleblower protections in both the public and private sectors. It introduces new enforcement mechanisms, expands the scope of protected individuals, and seeks to remove barriers that discourage whistleblowing.

Specific features of the new law

One of the most notable changes is the introduction of criminal penalties for retaliatory actions. Individuals who dismiss or discipline whistleblowers may face imprisonment of up to six months or fines up to JPY300,000. Companies can be fined up to JPY30 million. Although personnel transfers are excluded from penalties due to evidentiary challenges, any adverse action within one year of a report is presumed retaliatory.

The law also strengthens the enforcement authority of the Consumer Affairs Agency. Companies that fail to designate responsible personnel (jujisha) or obstruct investigations may face administrative orders, on-site inspections, and fines. The Commissioner now has the power to issue binding orders to ensure compliance.

The scope of protection has been expanded to include freelancers under current or recently expired contracts. Business operators are prohibited from terminating or disadvantaging these individuals for whistleblowing, marking a significant expansion of the law’s reach.

To further encourage reporting, the amendment prohibits unjustified attempts to identify whistleblowers or prevent them from reporting. While these actions are not criminally penalised, they are legally invalid and undermine corporate compliance and workplace culture.

Companies are also required to actively promote awareness of their whistleblowing systems. This includes training and communication efforts to ensure employees and related personnel understand their rights and protection.