Less red tape, more opportunity: BEG IV and its effect on employers

The employment contract can be agreed upon via email or verbally. However, the employer is required to document the key terms of the contract in writing and provide it to the employee in paper form, as mandated by the Proof of Substantial Conditions Applicable to the Employment Relationship Act (Nachweisgesetz).

Employment contracts can be created digitally and sent via email. The employer just needs to request confirmation of receipt. A separate written notice of the main contract terms is no longer necessary. However, employees can still ask for written proof of the essential terms and conditions of employment.

Certain sectors involving off-the-books work, as specified in Section 2a (1) of the Illegal Employment Act (Gesetz zur Bekämpfung der Schwarzarbeit und illegalen Beschäftigung), such as construction and hospitality, still require written contracts.

Fixed-term contracts under Section 14 of the Part-Time and Fixed-Term Employment Act (Teilzeit- und Befristungsgesetz) are only valid if they are in writing or accompanied by a qualified electronic signature. Failing to comply with this requirement results in the fixed term being invalid, leading to an open-ended employment relationship.

Despite the simplifications introduced by BEG IV, the written form required under Section 14 (4) of the Part-Time and Fixed-Term Employment Act will still apply to all fixed-term employment contracts under Section 14, whether they are based on a specific reason or not, such as for maternity leave replacements.

The age limit provision is regarded as a time limit. The employer must document this time limit in a hard copy with a wet ink signature or use a qualified electronic signature, which has often been cumbersome.

Any written form will suffice; a hard copy is not required, allowing the employment contract to be completed digitally.

According to Section 109 of the German Trade Regulation Act (Gewerbeordnung), a letter of reference (Zeugnis) must be issued in writing.

Employers can issue employment references electronically with the employee's consent, but they must include a qualified electronic signature. A scan with a scanned signature is not sufficient. However, references are often issued retroactively, and to avoid disadvantages from the visible date of issue, a printed reference is still more practical in many cases.

Applications must be submitted in writing; requests made via email are not legally valid. If an employee is absent after submitting a request for parental leave solely through digital means, this could be treated as an unexcused absence, meaning they may not be entitled to the special protection against dismissal under Section 18 of the Parental Leave Benefit Act (Bundeselterngeld- und Elternzeitgesetz). Additionally, requests for part-time work during parental leave must also be made in writing.

Starting in 2025, employees will be able to assert their rights to parental leave and part-time work during parental leave in text form, such as through email. Employers should ensure that these applications are processed promptly by HR to avoid any legal repercussions. Additionally, employers will be able to reject part-time requests during parental leave in text form, eliminating the need for the previously required written form.

Since fixed-term employment contracts still need to be signed in writing (wet ink), it may be wise to maintain existing processes to ensure consistent and legally compliant HR administration. Employers should also explore alternative simplifications, such as empowering HR employees to finalize contracts, which can help reduce the administrative burden.