The Bureaucracy Reduction Act IV (BEG IV) will come into force on January 1, 2025. It brings important changes to employment law that will help companies to reduce their bureaucratic workload. The aim of the reforms is to reduce the burden on the economy and make processes more efficient through greater digitalization and simplified formal requirements.
Important innovations at a glance
- Evidence Act
Until now,employers had to provide employment contracts with the employee's signature in written form. From 2025, it will be sufficient to provide the terms of the contract in text form, including electronic transmission. The contract only needs to be accessible, storable and printable for the employee. - Temporary Employment Act
There are also simplifications to the Temporary Employment Act. From 2025, temporary employment contracts can now be drawn up in text form instead of in writing. This significantly reduces the administrative burden for companies and staffing provider . - Industrial Code - digital employment references
An important change affects the Industrial Code: from 2025, employment references may be issued with a qualified electronic signature. However, the employee's express consent is required for this. - Working Hours Act - abolition of the obligation to post notices
Until now, companies have had to post the Working Hours Act and collective agreements in writing. From 2025, this obligation will no longer apply. Instead, employees must have unrestricted access to the information via other communication channels. - Exceptions for fixed-term employment contracts
Exceptions remain in place for fixed-term employment contracts and certain sectors. The fixed-term agreement must still be in writing, but can now be replaced by a qualified electronic signature. In some sectors, such as the construction and hospitality industries, the written form is still required due to the Act to Combat Illegal Employment.
What do the changes mean for companies?
The changes in the Bureaucracy Reduction Act 2025 are a major step towards digitalization and offer many benefits to both companies and employees. The reduction in bureaucracy improves flexibility, accelerates the procurement of professional services and optimizes internal processes. Companies can benefit from cost savings and a reduced administrative burden - while at the same time maintaining legal certainty. In particular, the ability to manage contracts and documents electronically simplifies international exchange and enables more efficient collaboration.
Important tips for practical implementation
Even if the new regulations make things easier, companies should continue to be careful with the formal requirements and the protection of personal data. In order to take full advantage of the new regulations, companies should consider the following points:
- Secure e-signatures: Use qualified electronic signatures for the legally compliant conclusion of temporary employment contracts.
- Automated records management: Implement digital workflows that ensure employees receive and store all the necessary information.
- Digital contract design: Use the text form to create contracts efficiently and ensure that they are clearly formulated, verifiably transmitted and legally compliant.
The new regulations open up many opportunities for companies to reduce their administrative workload and make their processes more efficient. With the right implementation, you can benefit from the advantages of digitalization without incurring legal risks.
