New information requirements in employment contracts
EU Directive
In July 2022, the German Bundestag and Bundesrat passed the "Act on the Implementation of the EU Directive on Transparent and Predictable Working Conditions in the European Union" (EU Directive 2019/1152 of June 20, 2019). The EU Directive was implemented through amendments to the Evidence Act and other laws, including the Temporary Employment Act and the Part-Time and Fixed-Term Employment Act. The purpose of this directive is to improve the provision of information to employees on essential working conditions. Among other things, there is a right to comprehensive, timely and written information from employers.
Essential additional information
According to the revised Section 2 of the Verification Act, the duration of the probationary period, among other things, must be documented in employment contracts. The remuneration components, in particular the remuneration for overtime, must be included. With regard to overtime, the requirements as well as the possibilities of an order for overtime must be recorded. In the case of terminations, the company must provide information on the specific procedure, i.e. inform the employees concerned that they can only be terminated in writing. In addition, the notice periods and the period for bringing an action for protection against dismissal must be stated in the employment contract. If further training opportunities are offered by the employer, these must be listed in the employment contract. If there is an entitlement to a company pension, the name and address of the pension provider must be included. The information must be provided in written form. Electronic form remains excluded (Section 2 (1) sentence 3 NachweisG).
Temporal application
The new information requirements generally apply to all new hires as of Aug. 1, 2022. Employees from existing employment relationships must also be informed of the essential terms and conditions of employment specified in the Evidence Act within seven days upon request. Existing employment contracts must be revised. Employers who do not properly comply with the requirements of the new Nachweisgesetz will face fines, with a peak of up to €2,000.00.
Status: August 30, 2022
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