According to the German Employment Documentation Act, companies based in Germany must document the essential terms of an employment contract in writing and hand it over to the employee. What information is mandatory and in what form must the proof be provided?
The German Proof of Employment Act stipulates that the employer must essential contractual terms of the employment relationship in writing, the transcript sign and the Hand over employees must.
Transparency should be created by documenting the key contractual conditions. Both employers and employees should have an overview of the contractual conditions and their contractual rights and obligations.
Mandatory information according to the Verification Act
The following information is mandatory for all companies in accordance with the Verification Act:
- Name and address of the contracting parties
- Date of commencement of employment
- in the case of a fixed-term employment contract: the end date or the planned duration of the employment relationship
- Place of work (or an indication that the employee is deployed at different places of work)
- a (short) job description
- Amount of remuneration and what components it is made up of
- Due date of payment and method of payment
- Agreed working time
- Duration of the probationary period (if agreed)
- Agreed rest breaks and rest periods
- for shift work: the shift system, the shift rhythm and the requirements for shift changes
- Number of holiday days
- the procedure in the event of dismissal; at least the written form requirement, the notice periods and the deadline for filing an action for unfair dismissal
- Reference to collective agreements, works or service agreements applicable to the employment relationship
Further obligations to provide evidence:
If the employer promises the employee a company pension scheme, the name and address of the pension provider must be stated (if the pension provider is not already obliged to provide this information). Any entitlement to further training provided by the employer must also be documented in writing. Ecclesiastical employers must refer to the regulations of commissions with equal representation, which determine the working conditions for the area of ecclesiastical employers. Special documentation requirements apply in accordance with the Documentation Act in the event that work is performed on call.
Tip: regulate key contractual conditions in the employment contract
It is recommended to use a written employment contract with the employee and to state the essential terms of the contract there. However, a written document issued by the employer in which the essential terms of the contract are listed is also sufficient. It is important that it is a written document.
Please note: In the event of non-compliance with the legal obligation to provide evidence, the company may be fined up to 2,000 euros.
Form and deadlines
According to the current legal situation, proof of the essential contractual conditions must be provided in Written form be made. This means that the document must be printed out and handed to the employee in paper form.
However, the law is about to change in this respect. The Bureaucracy Relief Act IV passed by the German government stipulates, among other things, that the obligation to provide evidence of the essential contractual conditions will also be fulfilled in future by sending the document with the required information to the employee by email in a printable format. Digital transmission will therefore be sufficient in future. However, in cases where the employee expressly requests written proof in paper form, the employer must continue to submit a corresponding paper document.
Note: The Bureaucracy Relief Act IV has not yet come into force. This means that the written form requirement still applies (for the time being).
The Evidence Act specifies various dates by which the essential contractual terms and conditions must be provided to the employee in writing. In any case, employers are legally compliant if they provide the employee with the essential terms of the contract on the first working day at the latest.
The Evidence Act was reformed in 2022. The list of essential contractual conditions to be documented was expanded.
For employment relationships that began on 1 August 2022 or later, all currently required mandatory information must be documented in writing in accordance with the Verification Act.
For employment relationships that began before 1 August 2022 and do not include the "new" mandatory information, the proof must be adapted if the employee so wishes.