The Bureaucracy Relief Act now allows employment contracts to be concluded in text form instead of in writing.
Digitalization aims to reduce administrative costs and support remote work.
Employment contracts must be comprehensible, accessible and storable; data protection regulations must be complied with.
The amendments only concern employment contracts; other types of contracts, such as purchase or rental contracts, are not affected.
The article offers help with the implementation of digital contract forms for companies.
The article offers help with the implementation of digital contract forms for companies.
The significance of the changes in the Evidence Act 2024
The new amendments to the Evidence Act (NachWG) create one binding legal framework for companies that want to conclude their employment contracts digitally.
The change now allows employment contracts (or the proof of working conditions regularly included therein) in textual form can be completed instead of the previously required written form with handwritten signature. This regulation makes it possible to finalize contracts efficiently via e-mail or other digital media. The main objectives of this adjustment are to reduce administrative costs and support remote work and global work structures.
What must be considered during practical implementation?
The following points must be considered in order to meet the new legal requirements:
- Text form instead of written form: Employment contracts no longer have to be signed by hand. They can now be legally concluded in text form. This means that contracts can be effectively concluded via e-mail, SMS or other digital media, provided that the content is permanently secured and comprehensible by the contracting parties.
- Accessibility and storability: The digital document must be accessible to the employee and be able to be saved and printed out by the employee.
- Proof of transmission and receipt: It must be possible to prove that the contract has been sent to the employee and that he has received it.
- Information requirements: The employer is required to communicate the main contract terms clearly and comprehensibly in due time. This includes information on work tasks, working hours, salary, vacation entitlement and termination conditions.
- Optional written form on request: Despite the admissibility of the text form, companies must be prepared to provide the essential contractual terms in writing upon request.
- Data protection: Compliance with the General Data Protection Regulation (GDPR) must be ensured.
- Fixed-term contracts: These still require strict written form, which applies not only to “classic” fixed-term employment contracts, but also when the employment contract provides for a so-called retirement period. Such time limits must continue to be made in writing.
The recent legislative amendments primarily concern employment contracts and have no effect on other types of contracts. As a result, special contract regulations that apply in other areas such as commercial law remain unchanged. Purchase or rental contracts, for example, must continue to comply with previous legal requirements.
The digitization of employment contracts through the Bureaucracy Relief Act is an important step forward that can significantly simplify the administration of industrial relationships. However, there are a few points to consider so that contracts can be concluded effectively. Do you need help implementing digital employment contracts? Contact us if you need assistance!
