German employment law has undergone a significant modernization since 1 January 2025: the Verification Act has been fundamentally reformed and enables comprehensive digital solutions in HR work for the first time. These changes are revolutionizing the way companies communicate with their employees and conclude contracts. Find out exactly what is changing and what impact this will have on day-to-day HR practice in this comprehensive overview.
What is the Evidence Act and why was it reformed?
The law on proof of employment has been in place since 1995 and regulates the obligation of employers to provide their employees with written proof of essential working conditions. Previously, this documentation was only permitted in paper form with a handwritten signature - a time-consuming process that was increasingly seen as a hindrance in the digital world of work.
The reform of the Verification Act was carried out as part of the Bureaucracy Reduction Act IV and implements the European Directive on Transparent and Predictable Working Conditions. The aim is to digitalize HR work and at the same time ensure the protection of employees. This modernization meets the needs of an increasingly digitally organized working world.
Digital revolution: From written form to text form
The most important innovation of the reformed Evidence Act is the transition from the strict written form to the so-called text form in accordance with Section 129b BGB. This change makes it possible to conclude employment contracts digitally for the first time without the need for the time-consuming postal process of exchanging original signatures.
In concrete terms, this means that employers can now fulfill their obligations to provide evidence by:
- Emails with attachments
- PDF documents without a physical signature
- Faxes
- SMS and other text messages
- Digital document management systems
It is important that the employee must confirm receipt of the document and that the employer keeps this confirmation of receipt in a safe place. This ensures that both parties are aware of the content of the terms and conditions of employment.
What content still needs to be verified?
The substantive requirements of the Verification Act remain in place despite the formal simplifications. Employers must inform their employees about the following essential working conditions:
Basic contract data
- Names and addresses of the contracting parties
- Start of the employment relationship and, in the case of fixed-term contracts, the specific end date
- Work location and possible opportunities for mobile working
- Description of the activity
Remuneration and working hours
- Composition and amount of remuneration including all surcharges
- Regulations on working hours and rest breaks
- Compensation for overtime
- For shift work: details of the system and possible changes
Vacation and training
- Duration of annual leave
- Entitlements to company training
- Information on the company pension scheme
[h3]Termination modalities in employment law[/h3]
One particularly important point concerns dismissal: Employees must be informed about the notice periods to be observed, the required procedure and, in particular, the deadline for filing an action for protection against dismissal. This transparency strengthens the legal certainty of both parties and prevents later disputes in employment law.
Exceptions and special regulations
Despite the fundamental digitalization, there are important exceptions that companies need to be aware of:
Industries with written form requirement
In certain economic sectors that are considered to be particularly at risk of undeclared work, the written form remains mandatory. These include
- Building trade
- Restaurant and accommodation industry
- Transportation and logistics
- Building cleaning
- Meat industry
- Guard and security services
Individual request of the employee
Any employee may expressly request to receive proof in traditional written form. In this case, the employer must comply with this request and create a paper document with a handwritten signature.
Terminations remain in writing
According to Section 623 of the German Civil Code (BGB), the written form remains mandatory for the termination of employment relationships by notice of termination or a termination agreement. A digital termination is still invalid.
Practical implementation and deadlines
The reform of the Evidence Act entails different deadlines depending on whether new or existing employment relationships are involved:
For new hires
For all employment contracts concluded since August 1, 2022, the obligation to provide evidence automatically applies:
- Basic information (name, salary, working hours): no later than the first day of work
- Further details (place of work, job description): within seven calendar days
- Complete documentation: within one month
For existing employment relationships
For contracts concluded before August 1, 2022, the obligation to provide proof only exists at the express request of the employee. If such proof is requested, the same deadlines apply as for new hires.
Legal consequences and controls
Since 2022, failure to comply with the obligation to provide evidence can be punished as an administrative offense with fines of up to 2,000 euros per violation. Checks are carried out by the local district administrative authorities, which can carry out corresponding inspections.
Important to know: Failure to submit proof has no effect on the validity of the employment contract itself. The employment relationship remains in place, even if there are formal proof errors.
Conclusion: Digital future with proven protection standards
The changes to the Evidence Act enable companies to make their contract processes completely digital for the first time and therefore more efficient and up-to-date. The reform represents an important step in the modernization of German employment law and makes it much easier for both employers and employees to deal with employment contracts.
At the same time, the proven protection standards for employees remain in place: The right to full information on working conditions remains, and strict formal requirements continue to apply in critical areas such as dismissal or in vulnerable sectors.
Companies should take advantage of the new opportunities to modernize their HR processes, but pay careful attention to the correct implementation of legal requirements. Professional advice can help to take full advantage of the benefits of digitalization while minimizing legal risks. Contact Rotwang Law for a free initial assessment.
