Less bureaucracy: German government paves way for digital employment contracts

In future, employers will also be able to provide information on the main terms of their employment contracts and make agreements on age limits in text form, for example by email. To this end, the German government has decided to amend the draft of the Fourth Bureaucracy Relief Act as planned. This means that the written form is no longer required in the Evidence Act. The legislative initiative with the amendments is expected to be passed before the summer break in one of the next weeks of the Bundestag session.

The law is intended to enable companies to digitize their HR administration processes. Only in sectors of the economy that are particularly at risk of undeclared work and illegal employment will it remain mandatory to provide proof in paper form. According to the correction proposal that has now been adopted, employees can still expressly request written proof of their working conditions. Employers must then continue to send them the information on paper.

Start-ups expect "noticeable simplifications"

For Federal Minister of Justice Marco Buschmann (FDP), the resolution is a central component of the planned amendment. He estimates that the changes that have now been approved alone will save companies around 2.6 million euros per year, and that the entire package will reduce costs by around 30 million euros per year.

"The digital employment contract is coming to Germany," said Christoph Stresing, Managing Director of the Startup Association, welcoming the move. Digitizing instead of printing saves "time and effort, for employers and employees". The additional effort of providing proof on paper or through a qualified electronic signature is no longer necessary. "The changes will make everyday life noticeably easier, especially for start-ups that work digitally. No more tedious piles of files, no more cumbersome signatures on paper, and no more expensive correspondence."

(mki)