The Fourth German Bureaucracy Relief Act (das 4. Bürokratieentlastungsgesetz - BEG IV) is in force (Federal Law Gazette 2024 (Bundesgesetzblatt - BGBl.) I, No. 323 of 29 October 2024). It amends over 70 laws, including several that are significant for HR practices and simplify the digitisation of HR processes. In particular, from 1 January 2025, many employment contracts can be concluded digitally.

Digital Employment Contracts

The German Evidence Act (Nachweisgesetz - NachwG) previously required employers to provide each employee with an original by hand (wet ink) signed document outlining the essential terms of the employment relationship. In practice, these terms were included in the employment contract, effectively imposing a requirement for such a strict written form according to Section 126 BGB (German Civil Code). This formal requirement is now changing: 

The Fourth German Bureaucracy Relief Act amends the Evidence Act (NachwG n.F. (new version)). From 1 January 2025, employers will be allowed to provide proof of contract terms in text form (according to Section 126b BGB) and transmit them electronically. The text form does not require a handwritten (wet ink) signature, but only the identification of the the declarant (e.g., block letters: ppa. (per procura) Hans Müller). A qualified electronic signature is not necessary. Text forms such as e-mails or DocuSign are sufficient.

Important: The text form is only permissible under the following conditions (see Section 2 para. 1 sentence 2 of the Evidence Act (NachwG n.F.):

• The document must be accessible to the employee (for example, by sending it to the employee’s e-mail address).
• The employee must be able to save and print the document. The security settings of the sent file must not prevent this.
• The employer must request the employee to provide a proof of receipt upon sending the document (e.g., via e-mail).

It would be advisable to link the request for acknowledgement of receipt with a consent declaration for the employment contract. The text form does not relieve the employee from accepting the contract offer presented in text form. 

This facilitates the way for the conclusion of „digital employment contracts“ (see below for exceptions and restrictions). Starting in 2025, employers can provide permanent employment contracts electronically as a PDF file by, for example: 

• Printing the employment contract, signing it by hand, and sending it as a scanned document, or
• Signing the employment contract using DocuSign, or
• Signing digitally, e.g. on a smartphone, or
• Indicating the name of the declarant at the end of the contract with the note „valid without signature“.

Changes to existing employment relationships will also be permissible in digital form starting in 2025.

Legal and tariff exceptions and limitations

• Fixed-term contracts are still subject to the strict legal requirement of written form (Section 14 para. 4 TzBfG (Part-Time and Fixed-Term Employment Act). Insofar, they can only be concluded in electronic form if a qualified signature is used in accordance with Section 126a BGB.

Starting in 2025, there will be an exception for fixed-term contracts; fixed-term agreements based on reaching the standard retirement age will be possible digitally. For such „retirement exit clauses“, a simple text form will suffice (see Section 41 para. 2 SGB VI n.F. (new version German Social Code VI = statutory pension insurance). For employment contracts with other fixed-term agreements, it is strongly advised against concluding them via e-mail.

• The agreement of a post-contractual non-compete clause must also be in strong written form according to Section 126 BGB (wet ink) as required by law (Section 74 para. 1 HGB, German Commercial Code).
• The industries mentioned in Section 2a para. 1 of the Act to Combat Illegal Employment (Schwarzarbeitsbekämpfungsgesetz - SchwarzArbG) (construction, hospitality and accomodation, passenger transport, freight forwarding, transport and associated logistics, showmen, forestry companies, building cleaning and trade fair construction, meat industry, prostitution, and security services) are excluded from the simplifications in the new version of the Evidence Act (Nachweisgesetz – NachwG. n.F.).
• Starting in 2025, the documentation of the essential working conditions for interns will „only“ require written form if the internship is not subject to the minimum wage (Section 1 NachwG) according to Section 2 para. 1a NachwG n.F..
• The stricter requirements of the Evidence Act (NachwG), which have been in effect since 1 August 2022, must also be observed when concluding a „digital employment contract“. To avoid the risk of fines, employers should check whether all mandatory information of the stricter Evidence Act (NachwG) is included in their employment contract templates, if not already done.
• Upon the request of an employee, the employer must continue to provide the documentation of the essential working conditions in strict written form (Section 2 para. 1 sentence 3 NachwG n.F.
• The strict written form requirement remains for the termination of employment relationships by dismissal or termination agreement (Section 623 BGB).
• If a collective agreement applies, it may provide different requirements for the form of employment contracts. This varies from industry to industry and requires case-by-case examination. However, if a relevant collective agreement stipulates that the employment contract must be in writing, a violation of the form requirement will not usually render the employment contract invalid.

Further form simplifications from 2025

• Employee leasing contracts between the lessor and the lessee can also be concluded in text form, e.g., by e-mail.
• The written form requirement for the declaration to be submitted to the works council of the lessee regarding the existence of a leasing permit of the lessor is waived.
• For requests for parental leave, applications for part-time work during parental leave, and the rejection of such applications by the employer, the text form is also sufficient from 1 May 2025, as is the assertion of care leave or family care leave from 1 January 2025.
• With the employee's consent, the employment reference can be issued in electronic form using a qualified electronic signature (Section 126a BGB).
• The posting requirement for the Working Hours Act and other regulations provided for in Section 16 of the Working Hours Act (ArbZG) can be fulfilled digitally using the usual information and communication technology in the company (e.g., intranet).

Axel Klasen