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Germany is de-bureaucratising. Time to update your practices.

As of 1 January 2025, some of Germany's paper-based traditional processes have been given a digital refresh, thanks to the Fourth Bureaucracy Relief Act (BEG IV). This act introduces significant changes, making life easier for employers and employees alike.


What's changing?


  • Employment Contracts – Employers can now confirm essential contractual terms digitally. Previously, while employment contracts could be concluded electronically, the main terms still had to be provided in written form, which somewhat defeated the purpose. Not anymore! Now, the essential terms and conditions of employment can be drawn up and sent electronically in text form, as long as the document is accessible, storable, printable, and there's proof of receipt. This is especially beneficial for remote workers, eliminating the need to travel just to sign a contract.


  • Temporary Employment Agreements (AÜG) – Written form for temporary employment contracts between lenders and hirers? Goodbye. From 1 January 2025, text form suffices, making the process more efficient for all parties involved.


  • Parental Leave Applications – Starting in 2025, a simple text form, such as an email, will suffice for the application to your employer. No more printing, signing, and sending. This simplification reduces bureaucratic hurdles for new parents.


  • Care Leave and Family Care Leave Requests – These can also move to electronic form, easing the process for those needing to care for family members.


  • Employment References – Employers can now issue employment references in electronic form using a qualified electronic signature, provided the employee consents. This means you can securely save references and forward them quickly when applying for jobs. --- Germany's Fourth Bureaucracy Relief Act isn't a full-blown revolution, but it's a welcome step out of the 20th century for employers. It streamlines processes, reduces administrative burdens, and embraces digitalisation in the modern workplace.


But Be Careful


That said, some things remain unchanged... for now. Employers still need to observe the written form requirement for fixed-term employment agreements, terminations, and separation agreements. The written form is also still mandatory for sectors particularly affected by undeclared work, such as construction and catering. Additionally, post-contractual non-competition clauses still require that classic ink signature.

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