Japan is taking meaningful steps towards strengthening corporate compliance and workplace transparency. Recent amendments to the Whistleblower Protection Act (Act No.122 of 2004) have been passed, providing stronger legal safeguards for individuals who report misconduct. These changes, expected to come into effect before 2027, show how whistleblowing is being managed and understood across Japan. A major development for both employers and employees in Japan.
Enhanced Protections for Whistleblowers
The revised Act introduces stronger protections for whistleblowers, aiming to encourage individuals to come forward without fear of reprisal. While whistleblowing has traditionally been a sensitive and sometimes avoided topic in corporate Japan, the changes to the framework aim to reinforce the importance of ethical business conduct and transparency. The measures are designed to build a better workplace environment where employees feel supported when raising concerns surrounding misconduct in the workplace and breaches of regulatory.
Impact on Employers
These amendments will introduce new obligations for employers, requiring the implementation of internal reporting systems that allow employees to report misconduct confidentially. The aim is to ensure that whistleblowers can come forward without fear of retaliation or intimidation in the workplace.
Cabinet Office Notification No. 118 of 2021, the employer must appoint a responsible person to manage whistleblower disclosures and implement procedures that offer a fair and prompt response. Employers who opt to ignore these obligations could expose the company to legal action and increased operational losses.
Preparation is Key
Although the changes are not expected to come into force until closer to 2027, businesses are strongly recommended to take early steps in preparation. Key areas to focus on include:
- Reviewing internal policies to ensure that whistleblower protections meet the new standards.
- Training management and HR teams on how to oversee disclosures appropriately and to prevent retaliation.
- Establishing secure reporting mechanisms that protect the anonymity and confidentiality of whistleblowers.
- Promoting an ethical culture that encourages staff to speak up without hesitation.
The Cabinet Order No.246 of 2022 updates all applicable Laws under the act, ensuring that whistleblower protections extend to newer areas such as digital transparency.
Why This Matters
Strengthening whistleblower protection supports Japan’s wider efforts to modernise its corporate governance and align with global best practices. These improvements not only protect employees but also help businesses overall by reducing misconduct, enhancing trust, and integrity across the workplace culture.
Looking Ahead
Japan’s updated Whistleblower Protection Act is a key step in modernising governance, aligning with global standards. By strengthening protections for those who report misconduct, the Japanese government aims to reduce unethical behaviour, build public trust and improve accountability. With a clear timeline leading up to 2027, companies in Japan can proactively adapt compliance frameworks rather than waiting for regulatory enforcement.
Leap29 Perspective
“Japan’s move to strengthen whistleblower protections really resonates—it’s a meaningful shift toward a more open and accountable workplace culture. In a society where speaking up hasn’t always been easy, these reforms feel like a step toward empowering people to do the right thing without fear. It’s encouraging to see a legal framework that not only protects individuals but also pushes companies to build trust from within. For any organisation, this is a chance to lead with empathy, listen more closely, and create a culture where integrity isn’t just encouraged — it’s expected”
– Simon Duff, Director at Leap29.
