The fourth Bureaucracy Relief Act (BEG IV) came into force on 1 January 2025 and brings noticeable changes to employment law. The aim is to lower the administrative burden on companies through digitized processes and simplified formal requirements.
What is it about?
At the heart of the act is the shift from written form – paper with a signature – to text form, which includes email or PDF. That affects several areas of employment law, from the duty to provide records through employment references to the Working Time Act.
The Evidence Act and staff leasing
Until now employers had to record the essential terms of the contract in writing. In future text form including electronic transmission is enough – the contract has to be accessible to employees, storable and printable. Leasing agreements too may be drawn up in text form rather than written form from 2025. For staffing providers and client companies that lowers administrative effort considerably.
Digital references and less posting
Employment references may now be issued with a qualified electronic signature – but only with the employee's express consent. In addition, the duty to post working time laws and collective agreements in writing falls away; instead employees have to be given unimpeded – for example digital – access to this information.
Not everything becomes free of form: fixed-term arrangements still have to be in writing, though they can be replaced by qualified electronic signatures. Sectors such as construction and hospitality remain subject to stricter requirements because of the act on combating undeclared work.
What companies should do now
The relief only pays off with clean implementation. Three points help:
- Secure e-signatures: use qualified electronic signatures for legally compliant contracts.
- Digital records management: set up workflows that make the contract terms available securely and with documentation.
- Use text form deliberately: word contracts clearly and evidence that employees had access.
The biggest lever lies in combining text form with clean documentation: anyone who traceably ensures employees have access uses the relief without legal risk.
Conclusion
The BEG IV opens up real opportunities for companies to lower effort and digitize processes – from faster recruitment to cost savings. Anyone who keeps an eye on formal requirements and data protection reaps the benefits without taking on legal risks.
Frequently asked questions
What is the fourth Bureaucracy Relief Act?
The BEG IV came into force on 1 January 2025 and lowers administrative effort for companies through digitized processes and simplified formal requirements – above all the shift from written to text form.
May leasing agreements now be concluded in text form?
Yes. Leasing agreements may be drawn up in text form rather than written form from 2025, which reduces the effort for staffing providers and clients.
Are digital employment references permitted?
Yes, with a qualified electronic signature – provided the employee expressly consents.
Are there exceptions to text form?
Yes. Fixed-term arrangements still need written form or a qualified e-signature, and sectors such as construction and hospitality are subject to the act on combating undeclared work.