What has changed for employers?
In the context of employment relationships, the aim of the BEG is primarily to reduce formal requirements. In the following the most important facilitations are summarized.
- Proof of essential working conditions now digitally available
Currently, employers are required to provide the essential terms and conditions in writing (with wet ink signature) to employees. Electronic transmission (e-mail, DocuSign etc.) is explicitly not allowed. This formal requirement also applies to changes to the essential terms and conditions of employment contracts. In practice, employers currently provide employees with an employment contract signed in wet ink before the start of an employment relationship.
The BEG simplifies compliance with the formal requirements of the NachwG. Wet ink is not necessary anymore. It is now sufficient to provide working conditions digitally, as long as employees may access, save and print the document and employers request acknowledgement of receipt. An exception applies, if employees explicitly ask for a hard copy, which should very rarely be the case.
- Concluding effective age-related limitations in employment contracts digitally
It is best practice to include age-related limitations in employment contracts, i.e., a provision stipulating that the employment relationship will automatically terminate once the employee reaches the statutory standard retirement age. Previously, as this is considered a fixed-term agreement, wet ink was mandatory. The BEG now allows digital conclusion. This also applies to postponing the agreed age limit. Regular fixed-term contracts continue to require wet ink signatures.
- Digital personnel leasing contracts
Wet ink was also required for personnel leasing contracts between lending and hiring companies. Concluding such contract without wet ink had serious consequences. The contract was considered null and void. Failure to comply with the formal requirement also led to a fictitious employment relationship between the temporary employee and the hirer. Additionally, a fine of up to EUR 30,000 could be imposed.
The BEG replaces the wet ink requirement with digital from, which will make it possible to conclude personnel leasing contracts digitally from 2025.
- Reference letters – not the change we had hoped for
Until now, reference letters had to be issued as a hard copy with a wet ink signature. With the change in law employers may now provide reference letters with employee's consent in electronic form using a qualified electronic signature. A regular Docu-Sign signature is not sufficient. Therefore, reference letters will still need to be issued in wet ink, if the signatory did not go through the (cumbersome) process of obtaining a qualified electronic signature. Also in practice, reference letters are frequently issued retrospectively, particularly amidst ongoing employment law disputes. Qualified electronic signatures always indicate the issuance date. Therefore, if a reference letter needs to be issued or corrected retrospectively, it will also be necessary to rely on a wet ink document.
- Digital application process for parental leave
After the change in law becomes effective, employees may submit the request to parental leave or part-time parental leave digitally to the employer. Similarly, the employer may reject such requests digitally. However, this does not change the strict prerequisites for effective rejection.
Practical remark
Please note that the legislator has not provided for retroactive effect in the BEG. Accordingly, the provisions only apply to contracts/applications that are signed as of 1 January 2025. Please ensure that all contracts signed prior to this date comply with the current form requirements. Old contracts are not affected by the new facilitations. Therefore, there is no "cure" for ineffective old contracts, i.e., contracts that were unlawfully concluded without wet ink will not automatically become effective from 1 January 2025, but would have to be concluded again.
Overview of formal requirements
Please note that this is not an exhaustive list of all the formal requirements of employment law, but only the most important ones.
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Object
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Status before BEG
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Status from 1 January 2025 (BEG)
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Employment contracts of indefinite duration
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Generally none
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Generally none
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Fixed-term employment contracts in general
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Written Form
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Written Form
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Agreements of age-related limitations in employment contracts
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Written Form
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Text Form
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Proof of the key working conditions regarding the Verification Act
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Written Form
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Text Form
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Notices of termination and separation agreements
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Written Form
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Written Form
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Applications for parental leave and part-time work during parental leave
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Written Form
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Text Form
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Personnel leasing contracts between lending and hiring companies
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Written Form
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Text Form
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Post-contractual non-compete obligation
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Written Form
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Written Form
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Brief comparison between written form and text form
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Written Form (§ 126 BGB)
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Text Form (126 b BGB)
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The document must be handwritten or typed and signed by hand from all parties involved.
With a few legally standardized exceptions, electronic signatures are not sufficient (exception electronic signature according to § 126a BGB).
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Less strict than the written form, only requires a declaration to be available in a readable form on a durable medium that clearly identifies the declaring person.
The document can be created and transmitted electronically, e.g., by e-mail, fax or text message. A handwritten signature is not required.
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