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The recently passed Bureaucracy Relief Act IV brings important changes that are particularly important for medium-sized companies in Germany. A central aspect of the law is the expanded acceptance of electronic signatures, which can now also be increasingly used for employment contracts. This article highlights the major changes and their implications for digital contract processing.
Current status and entry into force of the Bureaucracy Relief Act IV
The Federal Ministry of Justice initiated the process on January 11, 2024 by presenting the draft bill to the associations. The Federal Cabinet approved the draft on March 13, 2024, and the Federal Council is expected to issue its opinion on April 26, 2024. The final vote in the Bundestag is scheduled for the end of June 2024, followed by confirmation by the Federal Council after the summer break. Further discharge measures could be added during the parliamentary process.
When does the law come into force?
The Bureaucracy Relief Act IV comes into force on the first day of the quarter following the promulgation of the Act. This regulation allows broad application of the law, which aims to free citizens, business and administration from bureaucratic burdens. The new regulations, which include a significant increase in planned reductions to around 944 million euros, are expected to make significant changes in the use of electronic processes and digital communication within companies. These changes should help companies work more efficiently and respond more quickly to bureaucratic requirements.
What simplifications does the Bureaucracy Relief Act introduce?
Simplification through electronic signatures
The Bureaucracy Relief Act IV aims to further reduce administrative burdens for companies. A key element is promoting digital technologies to simplify and accelerate processes. Electronic signatures play a crucial role here by eliminating the need for physical signatures and thus enabling faster and more efficient contract drafting.
Legal recognition of electronic signatures
The new law significantly strengthens the legal basis for the use of electronic signatures in employment contracts. Electronic signatures are now equated with handwritten signatures, provided they comply with EU standards for qualified electronic signatures. This means that contracts that are signed digitally have the same legal validity as traditionally signed documents.
Planned changes in the employment law context of BEG IV
The government draft of the Bureaucracy Relief Act IV brings significant changes to employment law. A significant change is the amendment of the Evidence Act: The obligation to confirm the employment contract conditions in writing does not apply if the contract is concluded electronically in a printable format. Furthermore, the written form is to be replaced by the text form, which simplifies the conclusion of employment contracts and makes it possible to conclude employment contracts completely digitally, for example by e-mail.
Work references and information in accordance with the Working Hours and Youth Employment Protection Act may also be created or provided electronically in future. The text form in the Federal Parental Allowance and Parental Leave Act is also introduced for relevant applications. In addition, it is planned to amend the Temporary Employment Act by replacing the written form requirement for leasing contracts with the text form.
Once announced, these changes should come into force on the first day of the following quarter, which will enable rapid adaptation to the digital requirements of the modern working world.
Can employment contracts now also be concluded via email?
A progressive step in reducing German bureaucracy is the amendment of the Evidence Act, which makes it possible to handle employment contracts digitally. As a result of the recent amendments under the Bureaucracy Relief Act IV, employment contracts no longer have to be printed out and signed on paper. The new regulation allows contracts to be legally concluded in text form, such as by e-mail. This modernization should significantly reduce administrative costs and make the contract drafting process more efficient.
Practical implementation in companies
For practical implementation, this means that companies must adapt their internal processes and possibly invest in appropriate digital infrastructure. The selection of a suitable provider of electronic signature solutions that meets EU standards is essential. It is advisable to choose solutions that allow easy integration into existing systems and ensure a high level of data security.
Increasing efficiency through contract management software in employment law
The new provision in the Bureaucracy Relief Act IV, which allows employment contracts to be concluded in text form, opens up new opportunities for the use of contract management software. This technology can digitize the entire process, from preparation to negotiation and conclusion of employment contracts. In particular, it enables the employee to save and print out contract documents as well as the automatic entry of transmission and receipt receipts. This not only helps to reduce paperwork and costs, but also to speed up and simplify contract processes, which saves HR departments immense time.
conclusion
The Bureaucracy Relief Act IV represents an important step towards further advancing digitization in German companies. Expanded acceptance of electronic signatures opens up new opportunities for drafting employment contracts. This not only leads to an increase in efficiency, but also to a significant reduction in bureaucratic effort. Companies that take advantage of these new opportunities can significantly speed up and modernize their processes.
The law therefore offers an excellent opportunity to reduce administrative hurdles and at the same time increase security and traceability in digital contract processing. It is now time for medium-sized companies in Germany to set the course for a more digital future.
